“Why is he blackmailing us after he hijacked the file and after my client reporting him in Judicial Service Commission?”-Fred Muwema counsel for Ham.
Diamond Trust Bank has come out to distance from allegations that either them or Ham tried to bribe the Principal Judge.
The Principal Judge, Dr. Flavian Zeija revealed that one of the parties in DTB vs Ham case tried to bribe him ahead of a Court ruling.
He said earlier today as he delivered his ruling following Commercial Court decision directing Diamond Trust Bank (DTB) to refund Shs120 billion debited from Hamis Kigundu’s Bank accounts after declaring that $4,014,444 and $6,974,600 loans extended to him were illegal.
“I was flabbergasted by one of the parties sending emissaries to me with financial proposals in order to influence my decision. This is disgusting, to say the least,” Mr. Zeija said.
In his ruling earlier today, the Principal Judge objected to DTB’s application noting that the bank would suffer a great loss if the order is executed before the appeal is disposed of.
“This decision has far-reaching implications on the banking industry as far as it declares syndicated loans illegal. This calls for maintenance of the status quo to enable the court of appeal to inquire into this illegality and either uphold the finding or reverse it,” he ruled.
He said that if the application seeking to stay the execution of the Commercial Court orders is not stayed, it would render the appeal by DTB a waste of time.
However, Fred Muwema, the counsel for Ham told Eagle Online that the allegations by the Principal Judge was in bad faith and it could be due to that fact they accused him of hijacking the file and then engineering the appeal against the ruling by Commercial Court.
“That is blackmailing my client and me because this is coming up after I accused him of hijacking the file and my client reporting him to Judicial Service Commission”.
The Principal Judge ordered that all the orders of the Commercial Court are not executed until the case filed in the Court of Appeal is disposed of.
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 a loan facility from the Businessman.
In March, Ham dragged both banks to court for siphoning over sh120B from his accounts without his consent. He also wanted the 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.