Popular money magnet Hamis Kiggundu has thrown Diamond Trust Bank (DTB) under the bus following the banks illicit and irregular transactions amounting to shs 120 billion on his dollar and UGX accounts.
Because the bank couldn’t explain how, why and who authorized the transactions- since the account(s) owner was unaware, Ham was prompted to terminate his 8 year banking relationship with DTB- both Uganda and Kenya and further dragged the financial institution to Court over breach of contract and seeking refund of the monies illegally debited from his accounts.
The bank had threatened to attach Ham’s property on grounds that he had failed to service shs 39 billion loan
However, through his lawyers KSK associates, Ham accuses the bank of withdrawing $23.4M and UGX 34.2 billion from his account without his consent.
Figures don’t lie
Documents accessed by this website which detail the fraud DTB initiated against businessman Ham indicate that in UGX, the irregular transactions were 4.3 billion, irregular bank charges 629 million, unauthorized withdrawals 21 billion, unexplained transactions 7.6 billion and overdraft interest overcharge shs 254 million.
On the Dollar account, DTB made irregular transactions of 20000, irregular Bank Charges of 5402, unauthorized withdrawals of 21 million, unexplained transactions of 1.9 million, overdraft interest overcharge of 3685 and claim on loan from DTB Kenya of 50000.
According to the correspondences, Ham established this fraud after subjecting all his transactions to an audit query has since received 900 page audit report detailing each and every transaction he has made with DTB.
Further, the files indicate that while serving the loan, Ham paid shs 23.5 billion as total principle and 22 billion and total interest and therefore the total payment and principle and interest Mr Kiggundu paid DTB was 45.5 billion.
Therefore, the bank’s claim of shs 39 billion which it seeks to recover from Ham accumulates from the bank’s own fertile imagination, says an official privy to the transactions.
Already Ham has pressed DTB Uganda and Kenya to the wall following the August 6 landmark Court verdict after an injunction was granted with Diamond Bank conceding that in the interest of justice the 30% condition be vacated and that the matter should be left to court to determine the case on its merits.
The injunction is a big step for Ham in his quest to reclaim all the money illegally debited from his accounts to a tune of approximately Ugandan Shillings 120 billion now.
Commercial Suit
Court will begin hearing the main application of Ham’s suit starting August 27 before the commercial court.
Before seeking court redress, Hamis Kiggundu wrote a letter to Diamond Trust Bank seeking a response on how and what procedure was undertaken by the bank to withdraw money from the accounts without the client’s mandate.
On two occasions DTB management never issued a reply to date.
And on January 17, 2020 Ham through lawyers filed a commercial suit, H.C.C.S No. 43/2020, for recovery of the same and equally applied for an injunction stopping the Bank from turning around to claim recovery of loans that had already been recovered.
DTB challenged the suit with Regulation 13 of the Mortgage Act be imposed upon Ham Enterprises (U) Limited, which requires that if a person is to file proceedings against a Bank they should first deposit 30% of whichever amounts are involved, with the Mortgagee Bank.
Ham was against the order as this was contradictory to Article 28 of the Constitution that provides to every Ugandan a right to a fair hearing, claiming they were the victims from which the Bank had stolen money off their accounts and they had come to court seeking justice and recovery of the same.
Banks have always used this law (Regulation 13) to push their clients to the wall denying them the right to a fair hearing.
He also petitioned the Constitutional Court challenging legality of regulation 13 of which if Court rules in his favour will have set a precedent since this law has always affected Ugandans who are deeply affected by the banks.