The Commercial Division of High court has on Wednesday halted the independent audit exercise which was being conducted between Diamond Trust Bank (DTB) and Ham Enterprises to establish the amount of money due by both parties.
This process was initiated by the bank but later was challenged by Ham Enterprise on grounds that it was not proper to incur costs in this exercise when court has not yet accepted the defence submitted by DTB.
Ham argued that in case court throws out DTB’s defence it could lead them to wastage of resources which could have been paid to private auditors.
In his ruling, Justice Henry Peter Adonyo found it improper to carry out an audit on credit facilities which are still under challenge.
With this decision, the Institute of Public Accountants which had kicked off the exercise will have to hold on until next week when court pronounces itself on whether to retain or throw out DTB’s defence.
Addressing the press immediately after court, Hajji Hamis Kiggundu said the decision had increased his trust in the Judicial system.
In the matter pending ruling, Ham through his lawyers of Muwema and Company Advocates asked court to expunge DTB’s defence from court record on grounds that it contains a number of irregularities.
Ham dragged DTB -Uganda, and DTB-Kenya to Commercial Court for fraudulently siphoning over sh120b from his accounts without his knowledge and consent.
In its Defence, DTB said Ham Enterprise Limited is indebted to a tune of $6,298,380, Sh2.8 billion on the demand overdraft facility of sh1.5 billion, temporary demand overdraft facility of sh1b, 3,662,241 on the term loan facility of $4,000,000 and 4458,604 on the term loan facility of $500,000.
According to court documents, Kiggundu provided security/mortgage comprised in Plot no.923, Block 9 located at Makerere Hill Road to support the credit facilities he had got from DTB