In yet another legal gimmick, largely perceived to be a delay tactic, to buy him time, against the inevitable, businessman Hamis Kiggundu (Ham) has applied to the Constitutional Court, seeking to overturn, a 6th June 2023 Supreme Court ruling that foiled the businessman’s attempts to avoid repaying billions that he borrowed from Diamond Trust Bank (U) Ltd (DTB-U) and Diamond Trust Bank (K) Ltd (DTB-K). In a 07th of July 2023 application to the Constitutional Court, Ham, together with his two companies, Ham Enterprises Ltd and Kiggs International (U) Ltd, have dragged the two banks and the Attorney General to…
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By Phillip Karugaba & Rehema Nakirya Ssemyalo The Supreme Court of Uganda gave its judgment last week in the much-anticipated appeal in Ham Enterprises Ltd, Kiggs International (U) Ltd and Hamis Kiggundu vs. Diamond Trust Bank (U) Ltd and Diamond Trust Bank (K) Ltd (Civil Appeal No. 13 of 2021). The court held that a lending transaction between a foreign bank and a Ugandan borrower does not constitute “transacting financial institutions business” as defined by the Financial Institutions Act 2004 (“FIA”). This finally clarifies that a foreign lender does not require a licence from the Bank of Uganda (“BoU”) under…
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Uganda’s Supreme Court on 13th June 2023 dismissed an application in which businessman Hamis Kiggundu and his companies, Ham Enterprises Ltd and Kiggs International Ltd sought to wiggle out repayments of approximately USD11 million to two banks, claiming the lending was done without license. In the much-anticipated ruling, a Coram of 5 judges⏤Owiny-Dollo CJ; Mwondha JSC; Tuhaise JSC; Chibita JSC; Musota JSC) emphasised that the syndicated lending between Diamond Trust Bank Uganda (DTB-U) and Diamond Trust Bank Kenya (DTB-K)is legitimate and enforceable. It also ruled that foreign lenders who do not mobilise deposits domestically are not bound by the Financial…
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Uganda’s Supreme Court, Uganda’s highest court has dismissed attempts by businessman Hamis Kiggundu to run away from his debt obligations with Diamond Trust Bank Uganda (DTB-U) and Diamond Trust Bank Kenya (DTB-K), using the cover that the syndicated lending to him was done without a license and therefore an illegality and a nullity. Dismissing the application by Hamis Kiggundu and his companies, Ham Enterprises Ltd and Kiggs International Ltd), the Coram of 5 judges⏤Owiny-Dollo CJ; Mwondha JSC; Tuhaise JSC; Chibita JSC; Musota JSC)⏤ in a lead judgment by the Chief Justice, the Hon. Owiny-Dollo further re-emphasised no law forbids the…
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The Assistant Registrar to the Supreme Court has dismissed an application by businessman Hamis Kiggundu’s camp, that sought to delay an imminent ruling in the UGX120 billion case that could make or break his business empire. Supreme Court’s Didas Muhumuza in a 1st December 2021 letter to Ham’s lawyers―M/S Muwema & Co Advocates and Solicitors declined to grant an application for Judgment on admission by Ham’s lawyers saying there was nothing materially new in Ham’s application and that all matters raised therein would be addressed in the imminent main appeal lodged by the businessman. “The above Civil Miscellaneous Application No….
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By Phillip Karugaba, Rachel Musoke and Sheila Pacuto The Ugandan Court of Appeal, (in Diamond Trust Bank (Kenya)/Diamond Trust Bank (Uganda) vs Ham Enterprises Civil Appeal No, 262 of 2020), has set aside a decision that declared loans made by Diamond Trust Bank (Kenya) to a Ugandan business to be illegal on the grounds that the lender required and had not obtained a licence from the Bank of Uganda under the Financial Institutions Act 2004. The Appeal Court set aside the judgment and has sent the matter back to the High Court for retrial before another judge. In its decision,…
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In 2020 the borrower, Ham Enterprises applied to the high court of Uganda for orders among others that the lending by Diamond Trust Bank Kenya (“DTBK”), a Kenyan bank to the borrower Ham Enterprises (a Ugandan entity) was illegal on the basis that the Kenyan Bank engaged in financial institution business without due authorization and permission from the Bank of Uganda (“BoU”). The trial court ruled that the Financial Institutions Act (“FIA”) applies to foreign banks and it was illegal for money held on deposit, whether in Uganda or outside, to be lent without the approval of the BoU. The…
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As such, during the entire lifetime of a case- the accuser, also known as the plaintiff, dedicates huge amounts of effort, time and resources to prove their case, while the defendant or the accused, equally dedicates a lot of time trying to poke holes in the alleged evidence being presented by the court, to prove themselves innocent. But the case of businessman Hamis Kiggundu against two banks—Diamond Trust Bank Uganda (DTB Uganda) and Diamond Trust Bank Kenya (DTB Kenya) has defied all common sense. It is one of those rare occurrences, where the accuser has instead fought so hard to…
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Embattled city businessman, Hamis Kiggundu (commonly known as Ham) and his lawyers, tried to secretly and illegally have three properties at the centre of a commercial dispute with two banks re-transferred into his names, just days after the court win against the Diamond Trust Bank Uganda and Diamond Trust Bank Kenya. This was revealed by Principal Judge, Dr. Flavian Zeija while delivering his ruling in Miscellaneous Application No. 846 of 2020 brought by the two banks to stay the execution of the orders made by Justice Henry Peter Adonyo in High Court Civil Suit No 43 of 2020 brought by…
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The Hamis Kiggundu vs. Diamond Trust Bank (DTB) case took almost everyone by surprise. Everybody who knows the maverick businessman, the proprietor of Ham Enterprises and Kiggs International, knows that he and DTB have had a long cordial and reciprocal working relationship. It is a public secret that DTB has been at the centre of the businessman’s growth. In fact the bank was also a tenant at most of the businessman’s buildings as well. So mutual, that even when the businessman in October 2017, needed a USD10 million facility, and DTB Uganda could only lend him a maximum of USD5.5…
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