UK’s HSBC bank to be paid $3m
Aug 04, 2005
Hong Kong and Shanghai Banking Corporation (HSBC) will be paid $3.5m (sh6.2b) by Societe Generale de Surveillance (SGS) Uganda after winning a three-year legal battle.
By Hillary Nsambu
Hong Kong and Shanghai Banking Corporation (HSBC) will be paid $3.5m (sh6.2b) by Societe Generale de Surveillance (SGS) Uganda after winning a three-year legal battle.
SGS will pay the sh6.2b as damages arising out of a claim by HSBC that SGS issued false verification certificates of coffee stock assessment reports.
The reports were for HSBC’s debtor, H.M. Nsamba and Sons, who had a $7.9m (sh14b) debt.
HSBC also claimed that it was unable to recover the loan (plus interest) and incurred legal and other costs worth $900,000 (sh1.6b).
The reports were issued from March 1999 to June 2000.
The Principal Judge, Justice James Ogoola, endorsed the settlement.
The settlement was witnessed by Timothy Masembe-Kanyerezi and Rachel Musoke, HSBC’s lawyers, while Kiryowa-Kiwanuka and Edwin Karugire represented SGS.
London-based HSBC is one of the largest banks in the UK and biggest banking groups in the world.
SGS is an international inspection, verification and certification company.
Ends
Hong Kong and Shanghai Banking Corporation (HSBC) will be paid $3.5m (sh6.2b) by Societe Generale de Surveillance (SGS) Uganda after winning a three-year legal battle.
SGS will pay the sh6.2b as damages arising out of a claim by HSBC that SGS issued false verification certificates of coffee stock assessment reports.
The reports were for HSBC’s debtor, H.M. Nsamba and Sons, who had a $7.9m (sh14b) debt.
HSBC also claimed that it was unable to recover the loan (plus interest) and incurred legal and other costs worth $900,000 (sh1.6b).
The reports were issued from March 1999 to June 2000.
The Principal Judge, Justice James Ogoola, endorsed the settlement.
The settlement was witnessed by Timothy Masembe-Kanyerezi and Rachel Musoke, HSBC’s lawyers, while Kiryowa-Kiwanuka and Edwin Karugire represented SGS.
London-based HSBC is one of the largest banks in the UK and biggest banking groups in the world.
SGS is an international inspection, verification and certification company.
Ends