120Bn Fraud Case: Will DTB Stay On Its Feet After Losing to Tycoon Ham Kiggundu?

Aga Khan owned Kenyan Bank DTB is in a state of quagmire as it seems very clear that the bank is buying time to figure out how to pay Ham Enterprises but one thing remains clear that the Kenyan born bank does not have enough money to take care of the 120Bn fraud case.

To shade more light on this we closely look into their money resource potential with deeper attention to figures.

To begin with, available information indicates that Diamond Trust Bank Uganda’s total assets are Shs1.6 trillion of which shs 1.2trillion is customers’ deposits. This is not money owned by the bank, its depositors’ money.

This is clear evidence that DTB is merely surviving on depositors money and to make matters worse the profits made on this money is repatriated.

Going by the figures, this bank is left with shs 400billion after deducting depositors money from the total assets which is also inclusive of the buildings where it operates, the computers, the uniforms worn by staff, the bank slips they use etc. So when you reduce all that money of the bank assets, it remains with about shs 120bn.

Of the shs 120bn when you deduct shs 25bn held by bank of Uganda as security and DTB remains with only shs 70Bn. Then Ham Enterprises alone is demanding shs120Bn. This is a straight forward indicator that the bank has no money to pay him, it is simply buying time the mere fact that it was defeated in the first round where the 30% deposit was thrown out by the court.

In the second round, we saw the bank’s lawyer Kiryowa Kiwanuka telling court that the bank has no license to operate in Uganda. Kiwanuka also admitted that Hamis Kiggundu got the money from Kenya and DTB Uganda branch got security on behalf of its mother bank in Kenya. This also confirms that DTB bank Uganda participated in abetting money laundering.

Findings from Commercial Court indicate that on the 28th August 2020, Ham Enterprises (U) Ltd filed an application to the Commercial Division of the High Court of Uganda raising a preliminary objection based on an illegality asking the court to dismiss DTB’s defense as it arises out of an illegality involving both DTB Uganda and DTB Kenya.

The business transactions done by Diamond Trust Bank Kenya in Uganda are not licensed, not directly supervised by Bank of Uganda hence not paying the required taxes in Uganda. All proceeds derived from these transactions are taken outside Uganda to develop other nations hence Uganda is just used as a conduit.

This tantamounts to mass money laundering systematically facilitated by both DTB Uganda and DTB Kenya. These new revelations that DTB Uganda and DTB Kenya have been facilitating acts of abetting the commission of financial offences both in Uganda and Kenya. These offences include but not limited to tax Evasion on loans disbursed to Ugandan clients, disclosing to both the Central Banks of Kenya and Uganda about the financial operations of Diamond Trust Bank Kenya in Uganda, conducting commercial Bank Business Operations in Uganda without a license and massive money laundering.

Apart from DTB Uganda and Kenya performing unauthorized acts of debiting clients’ accounts, this same bank has been illegally carrying out financial business in Uganda without proper requirements as stated in the Financial Institutions Acts of both Uganda and Kenya.

Considering the above revelations on the illegalities by DTB Uganda and Kenya, it is most likely that the High Court will quash the defense conjointly filed by DTB Uganda and Kenya before the hearing as courts of laws don’t entertain illegalities.This current case is very interesting and a major concern for all people in Uganda’s business community to follow as it clearly shows the current situation of Uganda’s Banking Sector. The growth of Uganda’s economy is deeply predicated on the efficiency and proper operations of the banking sector.

It is also on record that the bank’s lawyer is also pushing for negotiation but Ham Enterprises as an entity insists that they cannot betray the country because the case is a national matter and the bank owes money. Therefore, the fact that the lawyers want negotiation means that the bank has already lost the case.