Court has halted the auditing process for the multibillion loan dispute between local businessman Hamis Kiggundu of Ham Enterprises and Diamond Trust Bank (DTB).
Justice Henry Peter Adonyo of the Commercial Court ruled yesterday that conducting an audit at this time of the trial would be untimely since the case is still under investigation.
“The implementation of the court order issued on August 31 directing the Institute of Certified Public Accountants of Uganda (ICPAU) to appoint an independent auditor to carry out a full account reconciliation of the financial transactions, which are based on the credit facilities between the plaintiffs and the defendants (DTB) to determine the amounts due inter-parties be stayed pending hearing and determination of (Kiggundu’s application),” Justice Adonyo ruled.
On August 31, the judge had directed the Institute of Certified Public Accountants of Uganda (ICPAU) to appoint an auditor to look at the bank and loans statements presented by both parties as exhibits in the case to see if one owes the other.
According to the order, the appointed auditor was to file a report which would help court determine the case in which Ham Enterprises is seeking to recover Shs34 billion and $23m from the bank, which the businessman claims was wrongfully deducted from his account.
Ham Enterprises lawyers Muwema and Company Advocates appealed to court to halt the auditing process until the determination of their petition seeking to strike out defence statements filed by Diamond Trust Bank (DTB).
Ham Enterprises Limited said it has since filed a petition seeking to throw out DTB’s written statements of defence on account that they were based on loan which are illegal.
The court set October 5 for the ruling on the Ham Enterprises’’ petition seeking to throw out DTB defence statements.
The petition arose from a case in which Mr Kiggundu and his companies Ham Enterprises and Kiggs International Uganda sued the bank on alleging of breach of contract in the multibillion loan deal.
Diamond Trust Bank denies any wrongdoing and says Kiggundu’s companies took the loans $6,663,453, Shs1.5b, Shs1b, $4m and $500,000 willingly and the credit facilities were duly remitted to the companies.
Compiled by Juliet Kigongo, Ephraim Kasozi & Betty Ndagire