City businessman and tycoon, of Ham Enterprises, one of the companies owned by prominent businessman Hamis Kiggundu aka Ham has dragged Diamond Trust Uganda to commercial court after the bank illegally and fraudulently debited over UGx 100 Billion from its accounts over a period of 10 years.
When Ham found out about the fraud, he wrote to DTB on November 16 2019, terminating all contracts with the bank.
“It was revealed that through extortionate, irregular, unlawful, deceptive transactions and in breach of your contractual duties, you fraudulently, through misrepresentation irregularly debited and recovered monies from our accounts for the 10 year banking relations, ” reads the letter in part.
Ham says this complicated the working relationship between the two parties, prompting him to terminate any contractual obligations with the bankers. ” We therefore hereby communicate the termination of all existing contracts…, ” read the statement.
On January 1, Ham wrote another letter to DTB, demanding among others, a full accounts figurative audit, accounts reconciliation and a detailed explanation, or else refund the monies to his company accounts within 5 days and that they also return all the certificates of titles in the hands of the bank, to Ham Enterprises.
He also threatened to seek redress from Bank of Uganda or constitute legal action should DTB fail to act accordingly. “Failure to do this leaves us with no option but to seek redress from the regulator or constitute legal action for remedies against DTB Uganda and DTB Kenya for recovery of these monies,” said the tycoon in his letter to DTB.
It ought to be noted that the two parties have enjoyed a long period of what appeared to be a peaceful business relationship, with most of the tycoon’s buildings in Kampala such as Ham Towers Makerere, Ham shopping mall Nakivubo, Haruna towers Ntinda among others, all housing the banking institution.
Meanwhile, the bank failed to refund money it stole from the company’s accounts which prompted Ham to sue the bank for recovery, costs and damages.
The scandal exposes the bank as an untrustworthy institution. Customers currently operating loan accounts in the bank might have to conduct thorough audits as there might be more of the same fraudulently debits being done by the bank.
