The Commercial Division of the High Court has set 5th October as the date to rule on a high-profile case between City tycoon Hamis Kigunddu and Diamond Trust Bank (DTB).
The Commercial Division will deliver the ruling after Hamis Kigunddu’s lawyers led by Fred Muwema floored DTB’s defense team led by Kiryowa Kiwanuka.
Justice Peter Adonyo will deliver the ruling.
Kiryowa Kiwanuka,or KK,as he is fondly known in the legal circles, conceded a legal own goal after admitting in court that DTB Kenya is not licenced to operate in Uganda and thus illegally accessed Kigunddu’s accounts held in DTB Uganda.
“DTB Uganda helped DTB Kenya to do an illegality. DTB Uganda facilitated DTB Kenya to do an illegality in Uganda,”said Counsel Muwema, Kigunddu’s lawyer.
Kiwanuka’s admission triggered suspicion that DTB Kenya and DTB Uganda may be colluding to either evade taxes or under-declare profits since their transactions are conducted behind the back of Bank of Uganda,the regular of commercial banks.
With no license to do business in Uganda, Kigunddu’s lawyers warned that it was illegal for DTB Kenya to debit Shs 120bn from his account.
Kigunddu’s lawyers have warned that DTB Uganda’s conduct violates the Finance Institutions Act,2004.
Kigunddu’s lawyers contend that DTB Kenya illegally debited Shs34b and $23m from his accounts, amounts over and above the loan facility he had with DTB Uganda.
Kigunddu had staked a prime plot on Makerere Hill Road as security for the loan facility.
