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Minister Onek’s opponent faces disqualification over bankruptcy

A poster of Walter David Ocira while contesting during the NRM primaries Courtesy Photo

Lamwo, Uganda |  THE INDEPENDENT | Independent Parliamentary candidate Walter David Ocira, who is contesting for the Palabek County seat in Lamwo district risks being disqualified by the Electoral Commission after the court declared him bankrupt.

Ocira is contesting in the newly created County that was curved off Lamwo County alongside Forum for Democratic Change (FDC) candidate Patrick Lakidi Laport and Relief and Disaster Preparedness Minister Hillary Onek Obaloker, the incumbent MP for Lamwo County.

Ocira’s woes are traced to a Civil Suit arising from his cargo and buses transportation business under KOMATSE Transporters Limited in which he is reported to have incurred debts from Janani Onyaya and Jodis Konyelenge that he is currently unable to pay. 

Court documents indicate that Ocira convinced Onyaya to venture into a fuel station business in the then Gulu Municipality because, at the time, in 2012, he was planning to relocate to Kampala. Onyaya also convinced his business partner Konyelege about the said business and they jointly mobilized 300 million Shillings that they gave Ocira, but later found out that the fuel station had already been assigned to another person. 

Without refunding the money, Ocira convinced the duo to join him in his bus transportation business and introduced them to Skenya Motors Uganda; a company that would supply them with two new buses on condition that Ocira would pay the 300 million Shillings as part payment for the procurement.

The buses registration numbers UAU-019F and UAU-421M were delivered to the businessmen until September 2015, when the first bus was impounded by Stanbic Bank on condition that it had been pledged as security for a credit facility. The second bus was also impounded by Skenya Motors Uganda setting the pace for a court battle in which Ocira was accused of fraud and breach of contract.

On May 28, 2018, the court presided over by Justice Lydia Mugambe Ssali awarded the plaintiffs costs for recovery of special and general damages with an interest from the date of judgement till payment in full. But despite the judgement, no payment has been made and the awards and interests have since  accrued to over one billion shillings.

It’s reported that on December 3, 2020, the Civil Division of the High Court in Kampala presided over by Justice Michael Elubu and acting under the Insolvency Act 2011 and the Insolvency Regulation 2013 issued an order declaring Ocira bankrupt. The order follows a petition issued by Walter David Ocira through his lawyers Munanura Mugabi Advocates that requested the court to declare their client bankrupt since his the business was no longer doing well.

Earlier in October 2020, it is said that Ocira had initially taken an oath before the Commissioner of Oath Gloria Najjuma at the Civil Division of the High Court requesting court to declare him bankrupt and therefore unable to pay his creditors. 

The Parliamentary Election Act stipulates that a person shall be disqualified for election in parliament once has been adjudged or otherwise declared bankrupt under any law in force in Uganda. But Ocira says the bankruptcy order is fraudulent and being orchestrated by his opponent Hillary Onek to disqualify him from the Palabek County parliamentary race, a claim his opponent vehemently refutes. 

According to Ocira, an appeal application that had been instituted in regards to the earlier judgement and commitments were being made to settle his creditors, hence the bankrupt declaration becomes null and void.   

Minister Hillary Onek, through his lawyers Stanley Omony of LEX Uganda Advocates have as well been summoned by the Electoral Commission on Wednesday as Ocira was in negotiations to invoke his nullification as a parliamentary candidate for Palabek County.

Onek’s campaign manager Isaac Okwera says the Commission will on Friday come out with a final recommendation in regards to removing their opponent’s name from  the list of candidates vying for the Palabek County Parliamentary Seat if he is not discharged by the court over his bankruptcy. 

Ocira lost to minister Onek in the NRM party primaries and decided to go independent, citing flawed polls.

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