The lenders under their umbrella, Money Lenders Union Limited together with their Secretary General Male Mabirizi have filed their case before the Kampala Sub Registry of the East African Court of Justice.
Money lenders in Uganda have petitioned the East African Court of Justice asking them
to quash a recent commercial Court decision in a case involving businessman
Hamis Kiggundu and Diamond Trust Bank Uganda and Kenya.
under their umbrella, Money Lenders Union Limited together with their Secretary
General Male Mabirizi have filed their case before the Kampala Sub Registry of
the East African Court of Justice.
are challenging the October 7 2020 decision by the head of Commercial Court Dr
Justice Henry Peter Adonyo who ordered DTB Uganda and Kenya to refund all the
money that was illegally taken from Kiggundu’s accounts amounting to 34 billion
shillings and 23m dollars (85 billion Shillings) immediately.
also ordered the two banks to return all his land titles citing that the
evidence on record indicates that all the loans totaling to 41 billion
shillings the businessman had obtained from the banks were fully settled at
also imposed an interest of eight per cent of the money as well as costs after
finding that DTB Kenya which gave the loan to Kiggundu through their agent DTB Uganda
did not have a license to operate in Uganda to do financial businesses in the
their petition to the East African Court of Justice, the money lenders argue
that the decision by the Commercial Court Judge can better be described as
robbery from a lender by the borrower while being supported by the court.
that the decision unreasonably interferes with internal arrangements of
sister-companies trading in the EA Community thereby defeating the purpose of free
trading in services protected by the Common Market Protocol where Uganda is a
decisions and orders are anti-East African Community and anti-Common Market as
the Judge views Uganda as an island yet Uganda is a signatory to the Treaty as
well as the Common Market Protocol which opened her borders to goods and
services of people and entities from partner states”, reads the petition in
It also adds
that the decision implies that Uganda has failed to protect Kenyans’ cross
border investments and also restricted movement of services which infringes on
the principles of The East African Community.
also fault the Judge for having denied the two banks an effective remedy in
the circumstances, the lenders say is against the principles of Rule of Law.
want the East African court to quash the decision by the commercial court, declare
that Kiggundu is still liable to pay the loans he obtained from the banks and
also award them general damages for the inconveniences caused to them arising
from the Adonyo decision.
The lenders also
want a permanent order restraining Ugandan courts from implementing and or
enforcing the decisions and orders by Justice Adonyo as they will have a great
bearing to the financial and business sector.
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the bankers under Uganda bankers Association released a
statement saying they were to join DTB Uganda and Kenya in appealing the decision
because it sent shockwaves across the industry and stakeholders especially
regarding syndicated loans.
The Bank of
Uganda has since indicated that they are waiting for a detailed copy of the decision
for them to make a response to it as well.