The High Court of Uganda has ordered Mbarara North Member of Parliament, Hon. Robert Mwesigwa Rukaari, to refund Shs381,520,000 he received as commission in a land compensation deal that the court has declared illegal and unconscionable.

In a ruling delivered by Lady Justice Anna B. Mugenyi of the Commercial Division on January 31, 2024, the court found that the agreement between Rukaari’s company—American Procurement Company, Inc. (AMPROC)—and an Isingiro resident, Mr. Eugene Arigye, was exploitative and unfair.

The dispute stemmed from a 2019 Memorandum of Understanding (MoU) in which Arigye and four others, whose land had been acquired by the government for refugee resettlement, agreed to pay AMPROC a 60% commission from their compensation totaling Shs8.07 billion. Rukaari had reportedly promised to use his political influence to expedite the compensation process.

Upon receipt of the first tranche of Shs1.5 billion from the government, AMPROC received Shs381.5 million as its share. However, Arigye’s lawyers later advised him to terminate the agreement, citing unfair terms. The Ministry of Lands was also instructed to stop any further payments to AMPROC and instead direct funds to a new account managed by Arigye’s lawyers.

Rukaari sued Arigye for breach of contract, seeking further commission, damages, and costs. However, Justice Mugenyi ruled that the terms of the agreement were “unconscionable,” citing the unreasonable commission rate and the irrevocable power of attorney granted to Rukaari’s company.

“Looking at the unreasonably unfair distribution of the money, coupled with the execution of irrevocable power of attorney in favour of the Plaintiff, I find that the MOU was unconscionable,” she ruled.

In addition to declaring the agreement illegal, the court ordered Rukaari to refund the Shs381.5 million and pay the costs of the suit. A follow-up ruling dated May 9, 2025, reaffirmed this decision.

This is not the first time Hon. Rukaari has faced legal trouble over financial matters. In March 2023, he was remanded to Luzira Prison over failure to settle a Shs700 million debt owed to businessman Gerard Kalungi, son of Kampala tycoon Godfrey Kirumira.

According to court documents, Rukaari had initially borrowed Shs992 million in 2018 but failed to pay back the full amount. A court directive issued on December 17, 2022, gave him until December 22 to clear the debt. After paying only Shs300 million, the court ordered his arrest and committal to civil prison.

“You are hereby commanded to commit the said Mwesigwa R into civil prison… until the said decree shall be fully satisfied,” the court order read in part.

Despite holding a seat on the NRM’s Central Executive Committee (CEC) representing entrepreneurs, Rukaari has yet to publicly respond to the latest court ruling.