Commercial Court has today ordered Diamond Trust Bank (DTB) to refund city tycoon Hamis kiggundu Shs. 120 billion which was illegally deducted from his accounts.
Justice Henry Peter Adonyo ruled that the bank violated the Financial Act of 2004 and therefore directed that the 120 billion should be paid with interest of 8% for carrying out illegalities on the Ham’s accounts.
Hamis Kiggundu through his companies Ham enterprises and Higgs International (U) ltd sued DTB branches in Kenya and Uganda for deducting money from his accounts.
The bank however said they only acted as per the loan agreement of deducting 30% from Kiggundu’s accounts to recover the credit facilities rendered to him between February 2011 and September 2016.
Hamis kiggundu had on 31st August petitioned the commercial division of the high court through his lead counsel Fred Muwema challenging the court to determine whether he owed the said loan facilities (about UGX39.7b) to the bank or if not, the court declares that DTB Bank deducted money from his bank accounts in both DTB Kenya and Uganda without his consent.
This was after presiding judge Justice Henry Adonyo told court that he was still writing his ruling on the case in which the plaintiff (Hamis Kiggundu) filed a petition before the same court seeking court to determine whether DTB Kenya which offered him credit facilities to the tune of USD4m has an operating license to conduct business in Uganda.