KAMPALA- The DTB Vs HAM case is one of those unique ones that caught the attention of the public domain when the commercial court judge made a landmark Judgment in favour of city business Hamis Kiggundu.
This changed the way the public looked at bank cases with their clients and of late there has been Keen interest in this matter.
For starters, is it because all these are big elephants or otherwise? Anyhow putting that aside, on October 7, 2020, DTB Uganda/ Kenya was ordered to pay immediately a tune of UGx.120bn that was deducted from Ham Enterprises and Kiggs International Ltd that belong to Ham without his consent.
It went on ordering them to pay an interest of 8 percent on the amount, legal cost and release the properties.
Due to sensitivity of the case and strain it would pose to the banking Industry, Diamond Trust Bank Uganda (DTB) Uganda together with the Uganda Bankers Association (UBA) appealed leading to Dr. Flavian Zeija, the principal Judge making an execution to stay the order until further investigations are made.
More so, on Monday, October 2, 2020, the court registrar read out the principles upon which the execution was halted stating that the court will have to define whether the transaction was illegal in the first case.
It cited out the matter of agency banking and needed clarity whether foreign banks are obliged to get a trading license in Uganda before carrying out any business transactions or not.
To ascertain if the banking industry declares syndicated loans are illegal and the fact that acquiring them will cripple the sector with over UGX.5.7 trillion in such as per reports from the Uganda Bankers association (UBA) among others.
According to Fred Muwema, Ham’s lawyer, he said that they are dismayed by the fact the the principle judge one of the top ranked official in the judiciary system is interfering with the case that he was not privy too in the first place, noting that they have never seen the chief justice the head of the system doing the same and termed it as improper due to the fact that it compromises independence of court.
He however emphasized that they have no problem with the appeal and shall be filing in one before the end of the week so that fast expedition is achieved for his client. We shall keep updated with the details as they unfold!
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