JSC receives Kiggundu's complaint against the Principal Judge

The Judicial Service Commission has received a complaint by businessman, Hamis Kiggundu against Principal Judge, Dr.Flavia Zeija over the manner in which he handled the sh120b DTB case.

Kiggundu petitioned the Judicial Services Commission (JSC) calling for an investigation of Dr.Zeija who he accused of bias.

In November 9 letter, the Judicial Service Commission chairperson, Justice Benjamin Kabiito acknowledged receiving the Kiggundu's complaint.

"We acknowledge receipt of your complaint against the above mentioned judicial officer. The complaint has been forwarded to the Registrar Planning, Research and Inspectorate, Julius Mwebembezi for evaluation," Justice Kabiito wrote.

Kiggundu, through his companies; Ham Enterprises and Kiggs International, had sued DTB-Uganda, accusing the banks of illegally taking away more than Shs 120 billion from his bank account in Uganda without consent while he was serving his loans with the same banks.

Justice Adonyo agreed with Kiggundu and ruled that the credit facilities offered by DTB-Kenya to Kiggundu were illegal since DTB Kenya is not licensed to carry out the financial institution business in Uganda.

Adonyo also ordered the banks to return the properties that Kiggundu had mortgaged, refund of the monies the banks had deducted illegally from his accounts. The judge also awarded costs to Kiggundu and imposed a 6 per cent interest on the monies among other several declarations.  

But the banks through their lawyers led by Kiryowa Kiwanuka, petitioned the principal judge asking him to issue staying orders such that they do not implement justice Adonyo's decision. Kiwanuka argued that if the application is not granted, the banks would suffer substantial loss by being required to pay Shs 120 billion and approximately Shs 9.6 billion in interest on top of releasing the securities deposited with the bank.

In his ruling, Zeija noted that the orders need to be stayed because justice Adonyo issued orders in favour of one party in a transaction that he found illegal but made no mention of the sums Kiggundu had borrowed.

Justice Zeija also said the Court of Appeal also needs to first answer the question of agency banking - whether foreign banks that are not trading in Uganda are required to obtain a license from Uganda to execute a contract.