• Home
  • News
  • Features
  • Analysis
  • Interviews
  • Opinions
    • Work & Employment
  • Columnists
  • Young Lawyers
Tuesday, January 26, 2021
  • Home
  • News
  • Features
  • Analysis
  • Interviews
  • Opinions
    • Work & Employment
  • Columnists
  • Young Lawyers
No Result
View All Result
  • Home
  • News
  • Features
  • Analysis
  • Interviews
  • Opinions
    • Work & Employment
  • Columnists
  • Young Lawyers
No Result
View All Result
The Legal Reports
No Result
View All Result

‘ You’re misguided:’ Businessman Ham’s lawyers Muwema & Co Advocates hit out at Bankers’ Association over ‘flurry of fake news’

Benjamin M. Ahikiiriza by Benjamin M. Ahikiiriza
October 9, 2020
in BUSINESS, Law Firms, News
0
Fred Muwema, the managing partner of law firm Muwema & Co Advocates

Mr Fred Muwema, the Managing Partner of Muwema & Co. Advocates. He was Hamis Kiggundu's lead counsel in his case against Diamond Trust Bank/ Photo: Courtesy

0
SHARES
Share on FacebookShare on Twitter

The law firm which represented local businessman Hamis Kiggundu, alias Ham, in his legal showdown with Diamond Trust Bank (DTB) over a sour loan deal, has accused the Uganda Bankers’ Association (UBA) of misinforming the banking industry and the public and causing a “flurry of fake news.”

Muwema & Co Advocates and Solicitors, said Friday, that the bankers’ lobby’s press release in which it claimed the commercial Court ruling in the case of Hamis Kiggundu against DTB rendered loan syndication illegal and put at risk a 5.7 trillion syndicated loan portfolio currently seated with commercial banks, is alarmist and its claims ignorant of the law and facts regarding the case.

Advertisement

On Wednesday, commercial Court Judge, Justice Henry Peter Adonyo, found in a court ruling, which has since attracted media attention, that the loans amounting to $4.5M extended to Hamis Kiggundu by DTB Kenya were illegal and unenforceable because the bank did not possess a license or permission from the Bank of Uganda to conduct financial business in Uganda.


Businessman Ham with lawyer Fred Muwema at the High Court’s Commercial division on Wednesday/ Courtesy photo

In a letter to Uganda Bankers’ Association chairman Mr Mathias Katamba, the law firm says that the association should have welcomed the court decision instead, because by insisting that the provisions of the law apply to all banking transactions whether by local or foreign banks, the decision promotes good banking practices, which by definition, the association stands for.

” Why would anyone find a Judgement which ensures compliance with the law to be reckless? The firm wonders.

” The Judgement declared the syndicated loan involving DTB Kenya to be illegal because it did not obtain permission from Bank of Uganda as required by the Financial Institutions Act (FIA) to conduct financial institutions business in Uganda.

” Is the UBA trying to push for deregulation of foreign lending in Uganda by vehemently protesting a court judgement which seeks to enforce the regulation of such foreign lending? Is UBA trying to promote illicit financial flows and anarchy in the financial sector?” the law firm said.


READ MORE:

  • Loan syndication in limbo after court ruling on Ham- DTB deal, Bankers say

Muwema & Co Advocates and Solicitors, which describes self as a firm that has ” carved out a niche as trusted advisors and partners in matters of banking and finance law,” bluntly accused the association of being an accessory to banks in illicit financial transactions and escaping the scrutiny of the authorities.

” This is not the first time nor the last that a Bank customer has accused or will accuse a bank of such predatory behavior and unethical conduct of financial pilferage. It would appear to us that the UBA has felt shockwaves of the Judgement because the Judgement exposes the hitherto undisclosed foreign loans which have been escaping regulatory oversight by the Central Bank of Uganda and which are otherwise eligible for taxation by the Uganda Revenue Authority.” The firm said.

” Can the UBA give an account of all taxes payable to the Ugandan treasury against interest payments remitted on the syndicated loan portfolio which you have reported to now stand at 5.7 trillion? ”

In their press statement, the bankers’ association sought to rally the support of several stakeholders in overturning the Court judgement including the Government of Uganda which it said is the ‘ biggest beneficiary of syndicated lending for various development programmes in the country.’

However, the law firm dismissed this as unnecessary. ” There is no reason why the Government of Uganda which is a sovereign juridical person should be blackmailed and taken hostage of in its own sovereign jurisdiction just because it is the largest beneficiary of syndicated lending for various projects” the firm said.

” The Government of Uganda has a corresponding duty to respect, protect,and apply the laws of Uganda equally to itself and all players in the banking sector, irrespective of whether they are local or foreign lenders.”

The law firm urged the Uganda Bankers’ Association to follow judicial due process in contesting the judgement of the court and to ” stop undermining the administration of justice and independence of the courts in Uganda through misguided media releases” otherwise it risks being ” cited for committing offences against judicial proceedings.”


 

Be part of the largest community of leading Ugandan legal bloggers, Submit your well researched, factual, analytical and accurate articles to the Editor via editor@thelegalreports.com or 0709751228


To advertise on this website contact 0709751228

Tags: Ham Versus DTBLaw firmlaw firmsLawyersMuwema Advocates
ShareTweetSend
AdvertisementAdvertisementAdvertisement
Benjamin M. Ahikiiriza

Benjamin M. Ahikiiriza

Benjamin Ahikiiriza is a Legal Content Developer, Legal Analyst and Executive Editor of The Legal Reports. +256709751228

Related Posts

Bobi Wine: Court orders restoration of besieged Presidential Candidate’s freedom amid accusations he wants to cause an insurrection
News

Bobi Wine: Court orders restoration of besieged Presidential Candidate’s freedom amid accusations he wants to cause an insurrection

by Benjamin M. Ahikiiriza
January 25, 2021
ADF’s Jamil Mukulu’s Trial Kicks Off Monday in Luzira Prison
News

ADF’s Jamil Mukulu’s Trial Kicks Off Monday in Luzira Prison

by Benjamin M. Ahikiiriza
January 24, 2021
Retired High Court Judge Kibuuka-Musoke dies at 71
News

Retired High Court Judge Kibuuka-Musoke dies at 71

by admin
January 7, 2021
Judiciary reprimands law students over dance video shot in Court premises
News

Judiciary reprimands law students over dance video shot in Court premises

by Benjamin M. Ahikiiriza
January 6, 2021
Lawyer who was accused of rape on social media gets court order temporarily stopping his accusers from making further rape claims
News

Lawyer who was accused of rape on social media gets court order temporarily stopping his accusers from making further rape claims

by Taremwa Victor Andrew
January 4, 2021
Regional lawyers’ lobby dismayed by Uganda’s shrinking respect for human rights and the rule of law ahead of the 2021 polls
News

Regional lawyers’ lobby dismayed by Uganda’s shrinking respect for human rights and the rule of law ahead of the 2021 polls

by Benjamin M. Ahikiiriza
January 3, 2021
Next Post
Advocate Julius Galisonga on the ruling in Ham Vs. DTB

Julius Galisonga: Why the decision of court in the case of Ham Vs. DTB is very important to every Ugandan.

Discussion about this post

Advertisement

Advertisement

Advertisement

TRENDING

  • Legal advisory in Tax matters should be left to Tax Lawyers and not CPAs

    Accountants and Tax Lawyers in Uganda’s Tax Advisory Space; Difference in Roles Demystified

    0 shares
    Share 0 Tweet 0
  • How to start and operate a Savings and Credit Co-operative Society in Uganda

    60 shares
    Share 60 Tweet 0
  • Shift of Power to the Tech Giants: Lessons for the Regulators

    0 shares
    Share 0 Tweet 0
  • Notice Board: Judiciary shuffles 26 High Court Judges

    0 shares
    Share 0 Tweet 0
  • Top Lawyers in Uganda revealed

    1583 shares
    Share 1583 Tweet 0
ADVERTISEMENT

LATEST NEWS

Bobi Wine: Court orders restoration of besieged Presidential Candidate’s freedom amid accusations he wants to cause an insurrection

Bobi Wine: Court orders restoration of besieged Presidential Candidate’s freedom amid accusations he wants to cause an insurrection

January 25, 2021
ADF’s Jamil Mukulu’s Trial Kicks Off Monday in Luzira Prison

ADF’s Jamil Mukulu’s Trial Kicks Off Monday in Luzira Prison

January 24, 2021
Notice Board: Judiciary shuffles 26 High Court Judges

Notice Board: Judiciary shuffles 26 High Court Judges

January 19, 2021
Legal advisory in Tax matters should be left to Tax Lawyers and not CPAs

Accountants and Tax Lawyers in Uganda’s Tax Advisory Space; Difference in Roles Demystified

January 19, 2021
Shift of Power to the Tech Giants: Lessons for the Regulators

Shift of Power to the Tech Giants: Lessons for the Regulators

January 18, 2021

Advertisement

Advertisement

The Legal Reports

CATEGORIES

  • Analysis
  • BUSINESS
  • Careers
  • Columnists
  • CORONAVIRUS
  • Events
  • Features
  • Insights
  • Interviews
  • Justice Herbert Ntabgoba Tribute
  • Law
  • Law Firms
  • Law School
  • Lawyers and Tech
  • Letters
  • News
  • Notice Board
  • Opinions
  • Regulation
  • Review
  • Special Reports
  • Tax
  • Uganda Judiciary Watch
  • Work & Employment
  • Young Lawyers

Follow Us

Follow us

Twitter

  • About
  • Advertise
  • Privacy & Policy
  • Contact Us

© 2020 The Legal Reports - A Brand of Lex Internet Initiatives Ltd

No Result
View All Result
  • Home
  • News
  • Features
  • Analysis
  • Interviews
  • Opinions
    • Work & Employment
  • Columnists
  • Young Lawyers

© 2020 The Legal Reports - A Brand of Lex Internet Initiatives Ltd

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In