Ham Enterprises, acting through Muwema Advocates & Solicitors, has warned Uganda Bankers’ Association (UBA) to desist from undermining judicial decisions, saying the association and its officers “will be cited for committing offences against judicial proceedings”.
In a letter addressed to UBA Chairman Mathias Katamba and the association’s Executive Director Wilbrod Owor, Ham Enterprises said at the weekend that UBA had felt the shockwaves of the judgment because it had exposed undisclosed loans, which have been escaping regulatory oversight.
Ham also challenged UBA to give an account of all taxes payable to the treasury against interest payment remitted on the syndicated loan portfolio, which the association last Thursday had reported to be about Shs5.7 trillion.
“It would appear that UBA has felt the shockwave of the judgment because it exposes the hitherto undisclosed foreign loans which have been escaping regulatory oversight by the Central Bank and which are eligible for taxation by Uganda Revenue Authority,” the letter said, noting that instead of maligning the ruling, UBA should applaud the judgement for directing the Central Bank to carry out its duty and enforce the law to regulate foreign lending.
The Central Bank at the weekend said in a statement it was awaiting the full judgment to announce itself on the contents therein and its implication on the banking sector.
At the weekend Ham dismissed claims that the judgment passed by Justice Henry Peter Adonyo of the Commercial Division of the High Court had in effect banned syndicated loans, wondering why anyone would call a judgment that seeks to ensure compliance with the law, reckless.