Kampala – Commercial Court Judge Justice Henry Adonyo on Monday ordered for a forensic audit by the Institute of Certified Public Accountants of Uganda (ICPAU) to determine whether Hamis Kiggundu; of Ham enterprises and Higgs international Uganda limited owes the Diamond Trust Bank loan arrears.
“This is to direct Institute of Certified Public Accountant of Uganda to carry out reconciliation and report back to court. Each party shall pay 50% of the cost for the accounts reconciliation,” the Judge ordered.
The court also ordered for a written submission by both parties by September 21 showing where Ham enterprises is seeking court to reject DTB defence in the case that he owes them loan arrears to the tune of USD6m.
The appointed auditor is to submit his/her report before this date.
Ruling on the application by Hamis Kiggundu will be delivered on 5th October and hearing of the case will begin.
The order came after both the defence and plaintiff’s lawyers disagreed on whether the loan transaction was carried out between Hamis Kiggundu and Diamond Trust Kenya and Uganda Branches.
Kiwanuka Kiryowa, the lead counsel for the bank also told the court that the businessman borrowed the money using his accounts in Diamond Trust bank Kenya but issued securities in Uganda as collateral for the credit facilities he attained from the bank.
On the other hand, the lawyer representing Hamis Kiggundu, Fred Muwema concurred that indeed the loan was borrowed from Kenya but was disbursed through accounts belonging to his client in Diamond Trust Uganda.
He further questioned the legality of DTB Kenya doing business in Uganda some which his counterpart Kiryowa thwarted, and said that the matter was a question of evidence and fact that the businessman borrowed money and defaulted on payment.
Muwema further contended before Court that the bank did not file a counterclaim in the suit that Kiggundu filed before the court in March and that the prayer by the bank for payment by his client for USD4M and not USD6M as stated is illegal.
“The only prayer my Lord is a prayer for dismissal of the suit with costs. So the only money the defendant’s bank wants is costs to the suit which is USD4m and not USD6m,” he said in court.
However, Kiwanuka Kiryowa responded that the prayer that the money owed by Kiggundu to the bank should also be struck off the suit.
“The question before this court is whether the money should be paid. If that is not an issue, then the prayer that the money should not be paid should also be struck off because to pray for the court to determine that the money should not be paid in caption 24(b) of the case is illegal and impossible, and the court must find out whether or not it is impossible, and must also determine whether the matter (loan) was due,” he submitted.
In Monday’s court session also his new lawyers amended the case and introduce a new matter of illegality of DTB Kenya advancing him loan all which will be determined in the report by the auditor from ICPAU as ordered by court.
- FULL LIST: Museveni Edges Bobi Wine As 529 MPs Secure Parliamentary Seats After General Elections
- UG DECIDES 2021: How Bush war Victor Museveni has Stayed in power for 35 years
- LANDSLIDE: Opinion Poll Tips Oulanyah To Win Omoro
- WEST NILE: Museveni Commissions Regional Referral Hospital, Fruit-factory in Yumbe
- Choose Gov’t that Delivers! Museveni Commissions Isimba Public Bridge as Kadaga Calls for Peace Amid General Elections
Hamis Kiggundu through his companies Ham enterprises and Kiggs International (U) ltd sued DTB branches in Kenya and Uganda for deducting money from his accounts something which the bank contends and said they only acted as per the loan agreement of deducting 30% from Kiggundu’s accounts to recover the credit facilities rendered to him between February 2011 and September 2016.