A High Court ruling has found Nelson Tugume, the CEO of Inspire Africa the registered proprietor of land in Namugongo, guilty of fraud and misrepresentation in a real estate transaction that has drawn attention for its complexity and deliberate deception. J
ustice Alexandra Nkonge Rugadya, presiding over the case of Cissy Gusko v. Tugume Nelson & Another, declared the contract void due to Tugume’s fraudulent conduct, awarding the plaintiff substantial compensation and declaring her rightful ownership of the disputed property.
The case, Civil Suit No. 469 of 2016, stemmed from a land sale agreement signed on March 31, 2016, between plaintiff Cissy Gusko and the first defendant Tugume Nelson.
The agreement concerned land on Kyadondo Block 185 Plot 4972 at Namugongo, with the plaintiff paying a staggering UGX 702 million for the property, which included six apartments and a parking yard.
However, what followed was a maze of deceit orchestrated by Tugume to frustrate Gusko’s ownership and distort the actual size of the property sold.
According to court findings, Tugume misrepresented the size of land sold in the agreement. While Gusko was led to believe she had purchased 57.7 decimals (approximately 0.577 acres), the written agreement vaguely stated 0.577 decimals—a size too small to even house the existing apartments and parking yard. Justice Rugadya noted that both Tugume and his lawyer had full knowledge of the correct measurements and actively concealed or ignored the discrepancy.
Further evidence from court-appointed surveyors and email correspondence confirmed that Tugume not only directed the survey of 57.7 decimals but also signed mutation and transfer documents corresponding with that size.
In what the court described as a “deliberate misrepresentation,” Tugume signed empty mutation forms and later claimed ignorance of the actual land measurements.
He only raised concerns after Gusko had paid off a mortgage to Housing Finance Bank and the title had been transferred.
The court also discovered that Tugume had demanded additional sums from Gusko—UGX 50 million to settle a caveat from Apollo Karugaba and another UGX 100 million allegedly for the 2nd defendant’s (Nixon Tusiime’s) claim—none of which were part of the original agreement.
The 2nd defendant, who had no contractual relationship with Gusko, subsequently placed a caveat on the land, further frustrating her ability to acquire a clean title.
Justice Rugadya found that Tugume had induced Gusko into the contract by concealing vital information about third-party claims and then exploiting the ambiguity in the agreement to extort more money.
She ruled that Tugume’s actions amounted to fraud and economic sabotage.
“It is evident from the pleadings and the conduct of the 1st defendant that there was a calculated effort to mislead the plaintiff, extract unwarranted sums, and frustrate the land transfer,” the judge stated.
The court awarded Gusko compensation of UGX 50 million for economic loss and damages, and ordered the immediate removal of the caveat placed by the 2nd defendant. Gusko was declared the rightful owner of Plot 11558 measuring 57.7 decimals (plus 4 decimals for an access road), totaling approximately 61.8 decimals.
This ruling serves as a stark warning to property sellers who abuse trust and legal processes to defraud unsuspecting buyers. With Kampala’s real estate market growing rapidly, cases like these highlight the importance of transparency, proper documentation, and legal diligence in land transactions.
