Ham Enterprises U Ltd has asked the court to halt the auditing process pending the determination of another application in which it is seeking to strike out the defense statements filed by Diamond Trust Bank (DTB) Limited as they arise from illegalities.
On August 31, Justice Henry Peter Adonyo of the Commercial Court directed the Institution of Certified Public Accountants of Uganda to appoint an independent auditor to carry out account reconciliation of the financial transactions which are based on the credit facilities between Ham Enterprises and DTB.
The order came after high court allowed the hearing of the 120 Billion fraud case filled by Ham Enterprises against Diamond Trust Bank (Uganda and Kenya) to proceed.
However, Ham Enterprises U Limited contends that it has since filed an application seeking to throw out DTB’s written statements of defence for being founded on credit facilities which are illegal.
According to the complaint, the court directed the two worrying parties to file written submissions and reserved the ruling date for October 5 this year.
“That at the same time, however, an audit exercise determines the said impugned credit facilities has been commenced at the instance of the respondent’s pursuant to a court order issued on August 31,” reads the complaint, adding that the audit exercise is subordinate to the outcome of the application that is pending ruling.
Through their lawyers of Muwema & Advocates, Ham Enterprises alleges that the said challenged credit facilities are in contradiction and repudiation of court’s investigation into the legality of the credit facilities and thereby violates their right to a fair hearing.
The application arose out of a case in which Mr Hamis Kiggundu alongside his companies; Ham Enterprises and Kiggs International Uganda Limited sued DTB Uganda Limited and DTB Kenya Limited of among others fraudulently siphoning over Ugx.120 billion from his accounts without his knowledge and consent.
The Company claims that between February 2011 and September 2016 his aforementioned two companies sought various commercial construction, development and completion of commercial properties.
As security, Ham Enterprises went on to provide several properties at Kyaddondo, Kawuku, Victoria Crescent 11, Kyadondo and Makerere Hill Road.
Ham Enterprises is now seeking recovery of Ugx.34 billion and $23 million from the bank which was unlawfully debited from his accounts.
On the contrary, the banks only admit that the businessman and his two companies hold accounts with them and that the same on various dates took various credit facilities.
Through their lawyer, Mr Kiryowa Kiwanuka, the banks further list the credit facilities taken by Ham Enterprises $6,663,453, Shs1.5bn, Shs1bn, $4m and $500,000.
According to The Company however, they were servicing the credit facilities but were shocked when the company carried out an audit and reconciliation of the loan accounts and found out that they had already settled all their facilities and instead the banks had purportedly debited Ugx.34billion and $2,346,670 from the company account without their knowledge. Ham Enterprises then run to court for recovery of this money. The company also thought a declaration that the bank’s demand for $4,014,444 and $6,974,600 which was advanced to him by DTB -Kenya is illegal and unenforceable on grounds that the Kenyan bank had no licence to carry out financial business in Uganda. Ham Enterprises further argues that it was illegal for DTB Uganda to appoint DTB Kenya as the agent bank and security agent in respect to its loan.
Meanwhile, the court is yet to set the hearing date for the application.
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