Mogul Hamis Kiggundu Asks Court To Dustbin DTB’s ‘Bogus’ Evidence In UGX120B Fraud Case

Mogul Hamis Kiggundu Asks Court To Dustbin DTB’s ‘Bogus’ Evidence In UGX120B Fraud Case

By Spy Uganda

Kampala: The City tycoon, Hamis Kiggundu yesterday in his case with Diamond Trust Bank, asked the Commercial Division of the High Court to throw out the defence evidence presented by DTB in a row involving fraud of one hundred and twenty billion shillings (UGX120B).READ ALSO: Commercial Court To Make Ruling In Ham,DTB UGX120B Fraud Case Tomorrow Monday

While appearing in court on August 31, 2020, Kiggundu’s lawyers led by Fred Muwema raised a preliminary objection in which they said they had filed an application to move court to struck out DTB’s defence arguing that it is based on illegalities.

“The defences are based on illegal transactions including the loan agreements which were made in Kenya lending in Uganda. DTB Uganda facilitated an illegality by allowing DTB Kenya to break the law in Uganda,”Muwema said.

The lawyer explained that because DTB Kenya is not licensed to carry out financial services in Uganda*, it was wrong to carry out any business with Hamis Kiggundu and that it was wrong for the bank to use their counterparts, of DTB Uganda to help them enforce the loan agreement in Uganda.

The lawyer argues that the court should find it logical to dismiss the evidence by DTB Uganda for helping another bank carry out an illegality.

READ ALSO: Commercial Court To Make Ruling In Ham,DTB UGX120B Fraud Case Tomorrow Monday

Muwema said that if their application is successful in an October,5, 2020 ruling by the trial judge, Henry Peter Adonyo, there will not be need for any further hearing of the case.

According to court documents, Kiggundu provided security/mortgage comprised in Plot no.923, Block 9 located at Makerere Hill Road to support the credit facilities he had got from DTB but the businessman says when he carried out an audit and reconciliation of the loan accounts, he found out that the DTB had taken shs34 billion and $23 million from his account.

READ ALSO: Round 1: Mogul Hamis Kiggundu Floors DTB In UGX120b Case

The businessman wants court to declare that DTB breached the different loan agreements entered into with him between February 16, 2011, and November 16, 2019 when it fully recovered over and above what was due to it through the loan installments and interest payment deductions .

Diamond Trust Bank (Uganda) and Diamond Trust Bank (Kenya) argue that Kiggundu received a credit facility totaling over shs41b a few years ago and he still owes them about shs39b. In turn Kiggundu, accused the banks of fraudulently siphoning over shs200b from his accounts without his knowledge and consent over the past 10 years.

READ ALSO: Banking Sector Laws Should Be Revised, Weak Laws Endangering Local Ugandans-Tycoon Hamis Kiggundu Speaks Out

The banks adds that as of January 21, 2020, Kiggundu was in default on payment obligations of $6.298m on the loan facility of $6.663m, as well as sh2.885b on the demand overdraft facility of sh1.5b and the temporary demand overdraft facility of shs1b.

They further claim that Kiggundu was in default on the payment of another $3.662m out of a total loan facility of $4m and another $458,604 on a loan facility of $500,000, as of January 21, 2020.

READ ALSO: We are Sorry: DTB Bank Apologizes To Bagyenda For leaked Bank Details

However Kiggundu revealed that this was a financial fraud since the money was fraudulently withdrawn from both his dollar and shilling accounts were in excess of what the bank was demanding. “They said they had carried out an audit of my bank accounts and discovered that the money was siphoned off over a period of 10 years” Kiggundu said.

He highlighted that a total of sh29.035b, was unlawfully debited from his shilling account, while $22.93m was withdrawn from his dollar account under what he calls unclear debits. Kiggundu, who has been accessing loan facilities from the bank for over 10 years, issued a notice to the bank terminating his relationship and withdrawing the mortgage instruments.

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