Diamond Trust Bank (DTB) has filed a notice of appeal against the judgment of Justice Henry Peter Adonyo in the matter between the Bank and Ham Enterprise Limited.
In his ruling yesterday, the judge directed DTB to refund Shs 120 billion which was debited from the accounts of Hamis Kiggundu and interest of 8% (shs9.6 billion) as penalties.
He faulted DTB Kenya for appointing its counterpart saying it had no license to carry out financial business in Uganda as per the financial institutions act of 2004.
“The act contravenes regulation number five and therefore DTB Uganda is penalized for taking part of illegal business,” he ruled.
Upon the ruling, DTB, in consultation with its legal advisers filed notice of appeal. “We look forward to the expeditious resolution of the matter in court in the court of appeal and are confident that the case will be determined on its merits.” the bank said.
The bank assured its stakeholders that they remain in good standing and their operations continue uninterrupted.
In February 2011 and August 2018, Kiggundu sought and offered $4,014,444 and $6,974,600 loans by the banks for construction of commercial properties. To secure the loan Kiggundu mortgaged Kyadondo Block 248, Plot 328 land at Kawuku, FRV 1533, Folio 3, Plot 36-38, Victoria Crescent II Kyadondo and LRV 3176 Folio 10, Plot 923, and Block 9 located at Makerere Hill Road.
DTB Kenya contacted its counterpart in Uganda to collect loan facility from the Business man. However DTB-Uganda insist that it did not act as an agent of DTB-Kenya to conduct business in Uganda, but only sought its services as a collection agent for it to receive its payments from Ham Enterprises Limited.
In March, Ham dragged both banks to court for siphoning over sh120b from his accounts without his consent. He also wanted court declare that the banks demand for $4,014,444 and $6,974,600, which was advanced to him by DTB-Kenya, is illegal and unenforceable on the grounds that the Kenyan bank had no license to carry out financial business in Uganda.