Kampala – The commercial division of the High Court on Thursday, August 27 issued a restraining order barring businessman Hamis Kiggundu and his associates over media case meddling.
The High Court slapped businessman Kiggundu with a straining order ending the running inaccurate media stories concerning the court case where he seeks the same court to decide whether he owes Diamond Bank in excess of UGX39.7B in loan arrears.
The businessman acquired the loan from the bank between the period of February 2011 and September 2016 to furnish his business ventures among which included the construction of Ham Shopping grounds in downtown Kampala.
The presiding judge Justice Henry Adonyo however, said that the media is not barred from reporting about the matter but those stories that seem to portray the defendant (DTB) in a bad light should be halted as the matter is still ongoing, and pending the hearing and ruling of the court.
The defendant’s lawyer Kiryowa Kiwanuka had earlier requested the court for an expeditious hearing since the matter is straight forward; that the plaintiff (Hamis Kiggundu) owes the bank loan arrears.
According to Kiwanuka Kiryowa, the businessman between the period February 2011 and September 2016 acquired the loan from branches of DTB Kenya and Uganda in four tranches of USD6.2M(about UGX22.3b), USD 3.2M(about UGXs11.5b), USD458,600 (aboutUGX1.6b) and UGX2.8b.
The loan was consolidated in 2018 and to run for five years ending on 23 August 2023, and according to the loan agreement, the bank would recover the money with interests by deducting 30% of the tycoon’s deposits in the bank for the five year period.
But when he defaulted, the bank sought to attach his properties so as to recover the loan arrears and he filed for an application seeking a court injunction to bar the bank from doing so.
A fortnight ago, the business wrote an opinion in one of the local dailies saying that the banking sector needed a policy reform regarding loans which opinion was refuted by the umbrella body of commercial banks in the country; Uganda Bankers, Association who said that the former was just a bad debtor who was crying foul and yet he dully knows the laws of the country governing loan acquisition from commercial banks.