Ham Kiggundu (R) with his lawyer Fred Muwema Principal judge, Dr Flavian Zeija has rebuked one of the parties in the businessman Hamis Kiggundu-Diamond Trust Bank (DTB) case for sending him agents with financial proposals to influence his decision in the matter.
Zeija made the revelation today while issuing orders in which he stayed the execution of the Commercial court ruling directing Diamond Trust Bank Uganda (DTB-Uganda) and Diamond Trust Bank-Kenya to refund Shs 120 billion to Kiggundu. Zeija said he was extremely surprised by one of the parties he didn’t name of attempting to bribe him, calling the action disgusting.
"Before I take leave on this matter, 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,” Zeija said.
Zeija’s ruling stems from the decision last month by Commercial court judge Dr Henry Peter Adonyo that ordered DTB-Uganda to refund all monies deducted from Kiggundu’s accounts in a case involving a syndicated banking agreement between DTB-Uganda and DTB-Kenya.
Kiggundu, through his companies; Ham Enterprises and Kiggs International, had sued DTB-Uganda, accusing the banks of illegally taking away more than Shs 120 billion from his bank account in Uganda without consent while he was serving his loans with the same banks.
Justice Adonyo agreed with Kiggundu and ruled that the credit facilities offered by DTB-Kenya to Kiggundu were illegal since DTB Kenya is not licensed to carry out the financial institution business in Uganda.
Adonyo also ordered the banks to return the properties that Kiggundu had mortgaged, refund of the monies the banks had deducted illegally from his accounts. The judge also awarded costs to Kiggundu and imposed a 6 per cent interest on the monies among other several declarations.
But the banks through their lawyers led by Kiryowa Kiwanuka, petitioned the principal judge asking him to issue staying orders such that they do not implement justice Adonyo’s decision. Kiwanuka argued that if the application is not granted, the banks would suffer substantial loss by being required to pay Shs 120 billion and approximately Shs 9.6 billion in interest on top of releasing the securities deposited with the bank.
Kiwanuka also noted that the decision would to have far-reaching implications on the entire banking sector in Uganda if the implementation is done before their appeal, which has high chances of success is not yet determined.
In his ruling, Zeija noted […]
