New Twist: Ham Enterprises Set to Crush DTB In Court Over 120Bn Fraud Case & Illegalities By The Bank

Emerging Proof reveals Diamond Trust Bank’s unlawful operations in total defilement of Financial Protection Acts of both Uganda and Kenya amounting to an illegality.

In a formal way, the Bank’s operations are directly monitored and supervised by Central Banks of a given nation. This means that the central bank is also in charge of giving Licenses to Banks operating within a given economy.

Given the recent ongoing case that we have been following closely where Ugandan businessman Hamis Kiggundu through Ham Enterprises sued Diamond Trust Bank Uganda and Diamond Trust Bank Kenya, there is a very cardinal need to understand how Diamond Trust Bank Kenya directly gave Ham Enterprises a facility by these two banks operating in different East African countries.

Key questions to be raised here is how Diamond Trust Bank Kenya directly started operating business with Ham Enterprises, and in addition how Diamond Trust Bank Kenya started operating business in Uganda without a license! We understand that for any financial institution to operate in Uganda, it must have got a license permitting it to do business in Uganda according to the Financial Institutions Act, 2004.

From the information available on the banking sector in Uganda with 26 commercial licensed banks, Diamond Trust Bank Kenya is not one of the 26 banks despite the fact that Diamond Trust Bank Uganda is their partner.

This clearly means that the Central
Bank in Uganda (BoU) is only directly monitoring the operations of Diamond Trust Bank Uganda but not Diamond Trust Bank Kenya.

Following the requirements as stipulated by the Financial Institutions Act, 2004,
it means there are serious concerns as to whether the operations of Diamond
Trust Bank Kenya in Uganda is permitted by law even when it is very clear that
this bank does not posses a license to operate in Uganda.

Does this also insinuate that Banks like Diamond Trust Bank Uganda that have
other partners in other countries are carrying out financial business in Uganda without being supervised by the Central Bank of Uganda?

Through deceptive measures and misrepresentation unjustly using their superior bargaining position as bankers unlawfully luring their client into unquestionable terms of contract amounting to an illegality jointly enriching themselves as DTB Uganda and DTB Kenya.

Our current findings from Commercial Court indicate that on August, 28,
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;
1. Tax Evasion on Loans disbursed to Ugandan clients

2. Not disclosing to both the Central Banks of Kenya and Uganda about the financial operations of Diamond Trust Bank Kenya in Uganda.

3. Conducting Commercial Bank Business Operations in Uganda without a license.

4. 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.

The call for Banking Reforms in Uganda is no-longer a desire but a necessity.

The is coming up for mention in Commercial Court on August, 31, 2020 at
11:00 and we shall keep you updated on all developments.

Watch the Space!

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