Dtb has for the second time been netted breaching Fudiciary duties, Openly Defrauding Customers: Convicted and fined by the High Court of Uganda
The Commercial Court judgement stated that the act of Diamond Trust Bank lending money to their client to buy a property and thereafter giving the property away to another party was highly irregular and shocked court how a bank that claims to be reputable could go around playing on the intelligence of their customers.
In July 2020, we reported a story on how the controversial Diamond Trust Bank had irregularly and fraudulently transferred Lt. Gen Charles Angina’s properties to another party on allegations that he had defaulted on his loan facility. This illegality by the DTB compelled Gen Angina to file a case in the Commercial Court (Suit No. 76/2018) asking court to order the bank to return his properties that had illegally been taken.
On March 5th 2021, the Commercial Division of the High Court ruled that General Angina’s Titles be transferred back to his names and equally ordered Diamond Trust Bank to pay UGX 400,000,000 to the general at an interest rate of 10% on top of paying the legal costs for the suit. The Commercial Court judgement stated that the act of Diamond Trust Bank lending money to their client to buy a property and thereafter giving the same property away to another party was highly irregular and shocked court how a bank that claims to be reputable could go around playing on the intelligence of their customers.
This huge blow to Diamond Trust Bank has happened just a few days away from the hearing of another historical case between Ugandan businessman Hamis Kiggundu and DTB Uganda and Kenya where the bank is battling with a case of fraudulently debiting the accounts of their customer (Ham Enterprises U Ltd) to a tune of Ugx120billion over a spread period of 10 years without his consent. The hearing of this case will take place on 17th March 2021 at the Supreme Court in Kampala.
Diamond Trust Bank is no stranger to committing illegalities as Diamond Trust Bank Kenya was earlier netted carrying out financial business operations in Uganda without a license from the regulator – Bank of Uganda (BOU). It should be known that the High Court had already pronounced itself on the illegalities and irregular acts of Diamond Trust Bank Uganda and Kenya in a detailed ruling on 7th October 2020 where the court ordered DTB to pay Ham Enterprises U Ltd the unlawfully debited amounts of UGX 120billion, legal fees and UGX 9.6billion interest per year.
Diamond Trust Bank Uganda and Kenya disagreed with the High Court ruling and appealed in the Uganda Court of Appeal. During the first reading of the case, DTB Uganda and Kenya suffered another mega setback when Bank of Uganda’s request to become Amicus Curiae was rejected by the set of three Supreme Court judges handling the historical Ham Vs DTB case.
Watch the space, We shall keep you posted.
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