Businessman Ham Kiggundu threatens to sue Diamond Trust Bank over "unauthorised" transactions

Prominent city businessman, Hamis Kiggundu, is considering taking legal action against Diamond Trust Bank accusing it of making unauthorised deductions totalling to Shs 100 billion from two of his accounts.

The accounts belong to one of his companies, Ham Enterprises.

In a letter dated January 10, 2020 addressed to the managing director of the bank Kiggundu wants the deductions to be reversed and the matter investigated.

In the meantime, he has forwarded an intention to sue letter to the bank.

He says the bank "fraudulently" debited Shs 29 billion from his shillings account and another Shs 22 billion from a dollar account. These two transactions when added to others, he says, total to Shs 100 billion.

Kiggundu in his letter says these transactions took place in a period of ten years.

"We demanded for a full accounts figurative audit, account reconciliation and a detailed explanation on the same otherwise Ham Enterprises U Ltd requests that its money should be refunded to its accounts within five days from then and that its Certificates of titles pledged as security be returned for as far as the company is concerned...," reads part of the letter.

“That the actions of the bank in regard to their previous dealings had complicated, stifled and frustrated their contractual obligations and duties with Diamond Trust Uganda and Kenya all which amounted to breach of contract. The company thereby communicated termination of all existing contracts. Clearly stating that, as far as Ham Enterprises (U) Ltd is concerned; there was no indebtedness to the bank.”

Kiggundu acknowledged that he had taken out loans from Diamond Trust Bank.

However in November last year after he noticed the irregular debits, he wrote to the bank communicating that he was terminating his contracts with it.

DTB is owned by the Aga Khan.