The ongoing legal dispute between businessman Ham and Diamond Trust Bank (DTB) in Uganda has taken a dramatic turn, deviating from what initially seemed like a straightforward case set to establish legal precedent and shape Uganda’s jurisprudence. The proceedings have been marked by unexpected twists, drama, and controversy.
Ham alleges that despite multiple reminders and requests, DTB withdrew funds from his accounts without his consent, deliberately refusing to comply with his legitimate demands. This perceived arrogance and impunity on the part of DTB motivated Ham to seek legal recourse. To his surprise, he discovered that DTB Uganda was collaborating with DTB Kenya, even though the latter lacked a license to conduct financial business in Uganda. This raised significant legal concerns under sections 4 and 117 of the Financial Institution’s Act (2004), which deem it illegal for a bank to operate in Uganda without a valid license.
During the trial in the High Court Commercial Division, both parties agreed on the preliminary objection of illegality. Notably, DTB’s lawyer,, openly admitted in court that his client did not possess a license and believed they did not require one. This admission, recorded in the court record, not only confirmed the commission of an illegality but also added weight to the case against DTB.
Furthermore, the issue of fraudulent withdrawal of funds from Ham’s accounts without his consent became a focal point. Judgment was entered not only due to the admitted illegality but also because Ham’s legal team invoked Order 13, Rule 6 of the civil procedure rules, which empowers courts to enter judgment based on admissions made in pleadings or at any stage of the lawsuit.
Upon realizing that Ham was moving forward with the execution of the High Court’s orders, DTB swiftly mobilized its influential legal representatives to approach the Principal Judge, who administratively halted the judgment. DTB subsequently appealed the decision to the Court of Appeal, where they sought a favorable outcome from Justices Madrama and Buteera, among others. However, the Court of Appeal did not address any of the 12 grounds raised by DTB in its appeal, nor did it tackle the issue of illegality. Instead, the court inexplicably referred the matter back to the High Court, disregarding DTB’s arguments. This move appeared to be a deliberate attempt to bypass the admission of illegality that was already proving detrimental to DTB’s case.
Unsatisfied with the Court of Appeal’s decision, Ham pursued his right to appeal to the Supreme Court, the highest court in Uganda. However, during the proceedings, DTB’s lawyer, Karugire, attempted to hold the court at ransom by suggesting that a ruling in favor of Ham on the issues of illegality and wrongful withdrawal would have severe repercussions on the economy, particularly foreign banks. Nonetheless, these issues boil down to the question of whether DTB operated illegally in Uganda without a license and whether Ham’s funds were unlawfully withdrawn from his accounts.
It is worth noting that DTB is represented by K&K Advocates, a law firm belonging to the Attorney General of Uganda. This has raised concerns of potential influence and conflict of interest. The Attorney General, Mr. Kiryowa Kiwanuka, seems to show no concern over DTB’s attempts to evade justice, despite the bank and its lawyers admitting to operating in Uganda without a license. This stark double standard raises questions about the fairness and impartiality of the justice system.
Ham’s case not only exposes the prevailing double standards in Uganda but also highlights the plight of the common man who has suffered under a government that shows little tolerance for street vendors and unlicensed operators. Many vendors have been arrested and unlicensed operators
The Attorney General of Uganda, Mr. Kiryowa Kiwanuka, has faced criticism for not acknowledging DTB’s illegal operations in Uganda despite the bank and its lawyers admitting to operating without a license. This has raised concerns about a potential conflict of interest, as the Attorney General’s law firm receives significant payments from DTB.
Meanwhile, street vendors in Kampala without licenses have been arrested and imprisoned, highlighting a double standard in the treatment of ordinary citizens versus multinational corporations. It is essential for the judiciary to assert its independence and address these illegalities impartially, as Ugandans closely observe whether justice will be served equally to all, regardless of wealth or status
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