Bank of Uganda keeping keen eye on Ham court case

Bank of Uganda Governor Emmanuel Mutebile has said he will wait for a detailed court ruling in the case of Ham Enterprises against Diamond Trust Bank.

"We await the detailed written judgement of the Court to assess its implications and to determine an appropriate response thereto, including any future actions with regard to the matter," Mutebile said in a statement over the weekend.

"Bank of Uganda would like to reassure all stakeholders and the general public that the Bank of Uganda remains committed to ensuring a resilient, sound and stable financial sector," Mutebile said.

Mutebile said he has taken note of the judgement of the Commercial Division of the High Court in Misc. Application No. 654 of 2020 and High Court Civil Suit No.43 of 2020 involving M/s Ham Enterprises and Others -Vs-Diamond Trust Bank (U) Ltd and Another, which was delivered on October 07, 2020.

Commercial Court head Justice Henry Peter Adonyo on Wednesday ruled that the credit facilities DTB-Kenya offered to Kiggundu are illegal since it is not licenced by Bank of Uganda as required under the law to carry out financial business in Uganda.

"The act of DTB-Kenya in conducting financial business is licenced in Kenya and it therefore illegally offered the facilities in Uganda. Consequently, this application is allowed with costs," Adonyo ruled. 

On Thursday, the Bank said it had filed a notice of appeal against the court's ruling. "DTB, in consultation with its legal advisers, has filed a notice of appeal against the judgment of Justice Henry Peter Adonyo. We look forward to the expeditious resolution of the matter in the Court of Appeal and are confident that the case will be determined on its merits," the bank said.

In March Ham Enterprise Limited, owned by business tycoon Hamis Kiggundu and Kiggs International (U) limited dragged DTB -Uganda, and DTB-Kenya to the Commercial Court accusing them of fraudulently siphoning over sh120b from his accounts without his knowledge and consent.