City tycoon Hamis Kiggundu aka Ham who is the proprietor of Ham Enterprise has petitioned the Chief justice of Uganda, attorney General and governor Bank of Uganda to order and stop the association of bankers of Uganda to stop undermining the powers of judiciary by calling a court ruling a Reckless Judgement.
Through his lawyers of Fred Muwema and company advocates and Arnold Nogan Kimara, Ham has written to chairman Uganda bankers association and executive director of Uganda bankers association responding to their statement that was circulated to various social medias calling a court ruling of their case a Reckless Judgement.
Last week commercial Court ordered DTB to pay Ham Enterprises shs 120Bn and damages after finding it guilty of withdrawing the said money on his accounts illegally.
According to Ham, in the media release by the Uganda bankers association which circulated electronically on social media platforms, it referred to the said ruling by Hon Dr Henry Peter Adonyo, the Head of the High Court Commercial as a reckless judgement on the unfounded allegation that it declared syndicated loans in Uganda to be illegal.
“What we find very odd is that you were capable of sustaining such a malevolent attack on the judgement of the Court without citing a single law or regulation to support your assertions. Since you have not demonstrated a full understanding of the facts and the law governing our Clients’ case, we have had no option but to correct your deliberate misrepresentation and false alarm about the ruling and judgement in the case.” Ham said.
He says the UBA is responsible for the flurry of fake news arising from its missive which has done a considerable job in misinforming the Banking sector and all stakeholders alike.
Ham points out that the implication which should be derived from the judgement that any Bank which desires to conduct syndicated loan transactions in Uganda is allowed to do so provided it comes under the regulation of the law.
“This is the message which the UBA should be passing on to its members and the foreign lenders who want to participate in the lucrative syndicated loan market in Uganda instead of alarming them that the Court has banned syndicated loans in Uganda.”
“It would appear to us that the UBA has felt the shock waves of the judgement because the judgement exposes the hitherto undisclosed foreign loans which have been escaping regulatory oversight by the Central Bank of Uganda and which are otherwise eligible for taxation by the Uganda Revenue Authority.” he said.
“Can the UBA give an account of all taxes payable to the Ugandan treasury against interest payments remitted on the syndicated loan portfolio which you have reported to now stand at UGX 5.7 trillion?” Ham added
According to Ham, there is no reason why the Government of Uganda which is a sovereign juridical person should be blackmailed and taken hostage in its own sovereign jurisdiction just because it is the largest beneficiary of syndicated lending for various projects.
He called upon the Government of Uganda to respect, protect and apply the laws of Uganda equally to itself and all players in the
Banking sector, irrespective of whether they are local or foreign lenders.
“There is no country in the world which doesn’t regulate syndicated loan transactions involving foreign banks or lenders. “Ham noted.
The High Court judgement has ensured that Uganda takes its place as a responsible member of the global financial community by adopting and adhering to international lending best practice. Why should any well intentioned and patriotic Ugandan oppose such a noble cause?
Ham further says the UBA should have applauded the Courts’ ruIing/judgement for directing the Bank of Uganda to carry out its public duty and enforce the law to regulate foreign lendinq transactions by foreign Banks.
“Does the UBA believe that Banking Sector in Uganda can develop without the enforced prudential regulation by the Central Bank?” he questioned.
He adds that until the judgement/ruling of the High Court is appealed and set aside, the UBA and its officers will do better to stop undermining the administration of justice and independence of the Courts in Uganda through misguided media releases.
“If the UBA and its officers do not desist from this inappropriate behavior, they will be cited for committing offences against judicial proceedings pursuant to S. 107 Penal Code Act Cop 120.” he said as clarified that the Court ruling did not outlaw foreign syndicated lending transactions in Uganda.
Ham further cautioned that they also expect that the UBA will be advised to follow the available judicial due process to say anything if at all, within the confines of the law