The multi-billion legal battle between businessman Hamis Kiggundu and Diamond Trust bank has had so many twists and turns that its conclusion remains uncertain, until now.
The registrar of Court of Appeal has since notified both parties that the judgement will be read in Court on Wednesday May 5 at 12pm.
Mr Kiggundu through his chain of companies Ham Enterprises and Kiggs international were challenging the legality of Diamond Trust Bank Kenya doing business in Uganda.
This week’s judgement comes at a time when the banking industry in Uganda needs to undergo complete banking reforms so as to eliminate all hurdles that make it so difficult for Ugandans to access fair financial support to grow their businesses. Financial analysts say that in the year 2020 between March and September, Bank of Uganda revealed in its report that commercial banks recorded profits to a tune of 874 Billion. Unfortunately, these profits are not recapitalized by the banks but rather repatriated out of the country.
On October 12 last year, DTB Uganda appealed the High Court judgment which ordered the bank to refund Mr Kiggundu $23.2m (Shs34b) he took as a loan, which court declared illegal.
Trial judge Henry Peter Adonyo had ruled that the money was illegally recovered from Mr Kiggundu’s bank accounts for repayment of loans the bank lent to him illegally.
The court also ordered the bank to return all property that Mr Kiggundu had mortgaged for the loan.
The bank petitioned the Principal Judge seeking stay of the orders until its appeal was disposed of. The request was granted and Principal Judge Flavian Zeija halted the refund and return of the mortgage property.