The case in which businessman Hamis Kiggundu of Ham Enterprises is seeking court to declare whether he owes in excess of UGX39.7B in loan arrears took a new twist on Friday after he, through his lawyer Fred Muwema filed for a dismissal of the audit ordered by Commercial court judge Henry Adonyo on 31st August 2020 at the Commercial seating in Kampala.
The judge on that day ordered the Institute of Certified Public Accountants of Uganda (ICPAU) to carry out an independent audit into the accounts of the businessman and financial statements exchanged between the two parties, and present a report to court.
However, when court sat on Friday to hear the application, the plaintiff (Hamis Kiggundu) did not have a written application, and Justice Henry Adonyo directed the plaintiff’s lawyer (Fred Muwema) to make a written application seeking court to dismiss the audit and return to court on 30th September for a hearing of the application seeking to dismiss the audit reports.
When asked by journalists why he has filed for an application seeking dismissal of the audit, Fred Muwema had this to say. “We are saying that let the validity and legality of those credit facilities (loans) be decided first before you can audit” He said.
He also added that the same court that is listening for an application to determine whether his client owes Diamond trust bank credit facilities should first determine whether their clients owes the said loan arrears before ordering for an audit.
The ruling on the application of the main suit to determine whether the businessman owes loan arrears to the bank is set for 5th October 2020, after which a date for hearing of the case will be set.
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.