35 year old City Tycoon and Businessman Hamis Kiggundu, is in a wrangle with Diamond Trust Bank (DTB) over a loan repayment going to the tune of Shs. 39.7Bn that according to the bank he has failed to pay.
Diamond Trust Bank (DTB), in a statement, asserts that the tycoon borrowed billions of Shillings from the bank that he has since failed to pay and is just multiplying suits to avoid the payments.
For his part, the tycoon claims that he repaid his loan to the bank in full because they “recovered the full amount” from his Shillings and Dollar accounts, a claim that the bank says is misguided and false.
“We wish to clarify the facts of the case, which are that Ham Enterprises Ltd, a long time client of the bank and some of their related entities borrowed money from the bank which they failed to pay back. The bank then commenced a recovery process with the clients who made proposals on how to settle the account which were agreed upon.” DTB said in a statement.
“However, Ham Enterprises then filed a suit in court against the bank with the untrue claims that the bank never disbursed any loans to him.” DTB further said.
The bank, in relation to the above, filed their defence and a date was set for hearing on August 27th, 2020 with the bank vowing to present all the necessary evidence to that effect in court.
Citing sub-judice, the Bank refused to engage further in the matter as it is before courts of law and prohibited from public discussions.
Mr. Kiryowa Kiwanuka, the lawyer representing DTB was quoted by The New Vision saying that Mr. Kiggundu borrowed money from DTB in four tranches; USD 6.2M, USD 3.2M, USD 458,604 and Shs 2.8Bn from both DTB Uganda and DTB Kenya between February 2011 and September 2016.
And that according to an April, 11th 2019 letter, Mr Kiggundu acknowledged the debts and promised to pay back by selling off his complexes in Makerere, Kampala.
The tycoon however, applied for a temporary injunction from court and challenged the bank’s actions when DTB sought to recover their money. Consequently, he challenged an earlier order by court to recover the monies and another order for him to pay up 30% of the money demanded before a main suit was heard. The tycoon claimed that his right to a fair hearing to stop the bank from taking his properties was violated.
The issue before court at the moment, we have learnt is whether or not Ham Enterprises Ltd borrowed the money from DTB. The two parties have signed a consent agreement where DTB agreed to forego the 30% upfront payment in favour of the expeditious hearing of the case.
According to documents filed in court by DTB, the tycoon was served with required reminders to repay the loan but he failed to clear up. The bank says they notified Kiggundu that he will forfeit his commercial building and land at Kawuku which he presented as collateral security if he fails to pay.