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Is businessman Ham fearing an independent audit?

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Businessman Hamis Kiggundu

 

Recently, businessman Hamis Kiggundu through his company of Ham Enterprise, asked the head of the Commercial Division of the High Court, Justice Henry Peter Adonyo to halt the auditing process that would determine liability of either him or Diamond Trust Bank (DTB).

The request by the businessman, raises queries on why he is now opting out of the audit process since he had earlier said he had his own audit into the multi billion loan dispute case he is battling out with the bank.

Legal observers believe, this is one of the delaying tactics by Mr Kiggundu.

According to the businessman, he wants court to halt the auditing process, awaiting the determination of yet another application, in which he is seeking to strike out defence statements filed by Diamond Trust Bank (DTB) Limited.

On August 31, Justice Adonyo 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 to establish who 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,” Justice Adonyo ordered in late August.

The judge went on to state that the appointed auditors would come up with a report that would assist court in determination of this multi-billion loan dispute between Mr Kiggundu and DTB.

The matter resumes on October 5 for a preliminary ruling.

This legal battle arose in January this year after 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 disputed huge loans.

Mr Kiggundu claims to have provided several prime properties at Kyadondo, Kawuku, Victoria Crescent II Kyadondo and Makerere Hill Road as security for the loans.

The businessman avers 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.

The loans in question were obtained by Mr Kiggundu between February 2011 and September 2016 through his two companies for construction, development and completion of some of his commercial properties.

Subsequently, the businessman is seeking recovery of Shs34 billion and $23 million from the bank, which he claims was irregularly deducted from his accounts. However, the bank insists says in its record, Ham has never had such amount oh is account.

But in their defense, the banks deny the breach of contract but concede that the businessman and his two companies on various dates, took various loans of $6.6m, Shs1.5 billion, Shs1 billion, $4 million and $500,000.

Further in their defence, the financial institutions claim the collateral securities provided by Ham Enterprises, were freely and willingly presented in order to secure the credit facilities.

Uganda Bankers Association has previously slammed businessmen like Ham who after getting money from financial institutions in form of loans turn around to blackmail banks in the guise of fighting bad banking policies.



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Source – Eagle Online

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