BY EPHRAIM KASOZI & JULIETTE KIGONGO
KAMPALA- The court ordered the appointment of an auditor to establish the responsibility of businessman Ham Kiggundu or the Diamond Trust Bank (DTB) in the loan dispute.
Judge Henry Peter Adonyo of the High Court Commercial Division ordered the Institute of Certified Public Accountants of Uganda (ICPAU) to appoint an auditor to review the loan records presented by both parties as evidence in the case for see if one owes the other.
“This is to order ICPAU to appoint an accountant to reconcile and report to the court. Each party will pay 50 percent of the cost of reconciling the accounts, ”the judge ordered.
He said the appointed auditor will file a report to help the court decide on the hearing of the case in which Ham Enterprises seeks recovery of Shs34b and $ 23 million from the bank, which the bank said. businessman, were improperly deducted from his accounts.
Judge Adonyo has asked lawyers for both sides to file written submissions on the claim in which Ham Enterprises is asking the court to dismiss DTB’s defense in the case. Submissions will be made by September 21 and the designated auditor will report by that date. The judge will render his decision on the request on October 5.
The court’s decision followed a joint memorandum in which the bank’s attorney, Mr. Kiryowa Kiwanuka, and Mr. Fred Muwema for Ham Enterprises agreed to have the dispute heard and resolved by the court.
Mr. Kiwanuka has submitted three sets of documents containing 201 exhibits on which the bank intends to rely in its defense.
Mr. Muwema submitted 14 documents, including the power of attorney granted to Mr. Kiggundu to obtain the bank’s loans, which are the subject of litigation in court.
This case arose in January when Mr. Kiggundu and his companies, Ham Enterprises and Kiggs International U Ltd, sued Diamond Trust Bank Uganda and Diamond Trust Bank (Kenya) for alleged breach of contract in connection with the loan dispute. of several billion.
He claims that between February 2011 and September 2016, his two companies sought various loans from banks for the construction, development and completion of commercial properties.
Mr. Kiggundu says he has provided several properties in Kyadondo, Kawuku, Victoria Cresent II Kyadondo and Makerere Hill Road as collateral for the loans. He claims that along the way, while repaying the loans, he realized that the banks had not returned part of the agreed amount of money and, in turn, illegally deducted the money of his accounts without his consent.
In their defense, the banks deny the breach of contract and only admit that the businessman and his two companies have accounts with them. The banks also admit that on various dates the companies took out various loans of $ 6.6 million, $ 1.5 billion, $ 1 billion, $ 4 million and $ 500,000. The banks also claim that the securities of Ham Enterprises were freely and voluntarily presented in order to secure the credit facilities.