Hamis Kiggundu, popularly known as HAM, has lost an appeal in the Supreme Court after six judges unanimously agreed the Sh120 billion, which was extended to him by DTB Uganda and DTB Kenya, is within the law.
However, in the ruling delivered Tuesday, the Supreme Court judges unanimously agreed that the loan facility was legal and ordered HAM to pay 50% of court costs.
HAM had argued that DTB Kenya had no license to operate in Uganda when it came to repayment of the loan, which DTB Uganda later recovered on behalf of its Kenyan counterpart.
In the instant case before this Court, the 2nd Respondent (DTB Kenya) is neither licensed nor regulated to carry out financial institution business in Uganda; hence, its appointment of the 1st Respondent (DTB Uganda) as its banking agent could not have been so done under the provisions of the Financial Institutions (Agent Banking) Regulations, 2017.
Second, the 1st Respondent, being an entity duly licensed to carry out financial institution business in Uganda, could not have been appointed a banking agent of the 2nd Respondent within the purview of the Financial Institutions Act, 2004, as amended, and the Agent Banking Regulations of 2017 made pursuant thereto.
Additionally, “the relationship between these two banking institutions and between them and the appellants, with regard to the financial credit transactions carried out between and amongst them, was neither governed by the Financial Institutions Act, 2004, as amended, nor the Financial Institutions (Agent Banking) Regulations, 2017, made thereunder.”
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