News

Court Dismisses BOU’s Application to Join Case Against Ham

1 Mins read


Court of Appeal has dismissed the application filed in by Bank of Uganda (BOU) in which it sought to join the Ham Enterprises Vs Diamond Trust Bank (DTB) appeal, as ‘Amicus curie’ (friends of court).

Deputy Chief justice Richard Buteera, Kenneth Kakuru and Christopher Madrama in their ruling pointed out that it was not proper for the Central Bank, which opposed the High Court Judgement over the same to come in court on a matter that requires a neutral party.

“A friend of court must be a neutral and impartial person, not one claims to have been affected by the decision of the court. The applicant can only be joined as a party to the case after a formal application,” the judges ruled.

They also noted that on several occasions BOU publicly sided with DTB in criticizing the decision of High court judge Henry Peter Adonyo.

BOU as such was advised to file their application in court on Monday 1st February 2021and serve the respondents(HAM) on the same date.

Court will deliver the judgement on this application on 25th February 2021.

In the appeal before this court DTB challenges the High Court’s decision which declared the process in which DTB Kenya lent Ham Enterprises over 120 billion shillings as illegal since it didn’t have a license from the Central Bank of Uganda as provided for under the law.

DTB was ordered to refund all the money which was collected from Ham Enterprises bank Accounts under the guise of loan repayment on top of refunding all land titles which he had deposited in Bank as security.

However, BOU maintains that foreign banks’ lending deposits held in jurisdictions other than Uganda are regulated and supervised by their home authorities, and it is not mandatory for a foreign bank to establish a representative office in Uganda in order to conduct lending or non-deposit-taking activity.

“Bank of Uganda’s regulatory and supervisory powers only apply to financial institution business conducted by BoU licensed entities in or outside Uganda or activity which should be licensed as such in Uganda. These powers do not extend to activities of foreign banks outside Uganda licensed by foreign regulators,” said BOU Governor Emmanuel Tumusiime-Mutebile in the statement.



Source – ChimpReports

Power your brain with Ugandan News

Add some text to explain benefits of
subscripton on your services.

Leave a Reply

Your email address will not be published. Required fields are marked *