Court orders appointment of auditor in DTB, Ham case

One of the buildings at the centre of the dispute

BY EPHRAIM KASOZI & JULIET KIGONGO


KAMPALA- Court has ordered for appointment of an auditor to establish liability of either businessman Ham Kiggundu or Diamond Trust Bank (DTB) in the loans dispute.

Justice Henry Peter Adonyo of the High Court Commercial Division has directed the Institute of Certified Public Accountants of Uganda (ICPAU) to appoint an auditor to look into the loan statements presented by both parties as exhibits in the case to see if one owes the other.

“This is to direct ICPAU to appoint an accountant to carry out a reconciliation and report back to court. Each party shall pay 50 per cent of the cost for the accounts reconciliation,” the judge ordered.

He said the appointed auditor will file a report to help court decide the hearing of the case where Ham Enterprises is seeking recovery of Shs34b and $23m from the bank, which the businessman claims was irregularly deducted from his accounts.

Justice Adonyo asked lawyers of both parties to file written submissions on the application where Ham Enterprises is seeking court to reject DTB defence in the case. The submissions will be presented by September 21 and the appointed auditor will submit his/her report before this date. The judge will deliver the ruling on the application on October 5.
The court decision followed a joint memorandum in which the bank lawyer, Mr Kiryowa Kiwanuka, and Mr Fred Muwema for Ham Enterprises agreed to have the disputed heard and determined by court.

Mr Kiwanuka submitted three sets of documents containing 201 exhibits which the bank intends to rely on for its defence.

Mr Muwema submitted 14 documents, including the power of attorney granted to Mr Kiggundu to obtain the loans from the bank, which are under dispute before court.

This matter 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 the multibillion loan dispute.

He claims between February 2011 and September 2016, his two companies sought various loans from the banks for construction, development and completion of commercial properties.

Mr Kiggundu says he provided several properties in Kyadondo, Kawuku, Victoria Cresent II Kyadondo and Makerere Hill Road as security for the loans. He claims that along the way, while repaying the loans, he realised that the banks had not remitted some of the agreed amount of the money, and in turn unlawfully deducted the money from his accounts without his consent.

In their defence, the banks deny the breach of contract and only admit that the businessman and his two companies hold accounts with them. The banks also admit that on various dates, the companies took various loans $6.6m, Shs1.5b, Shs1b, $4m and $500,000. The banks also contend that the securities by Ham Enterprises were freely and willingly presented in order to secure the credit facilities.