By Joachim Twino
Through his lawyers, Muwema & Co Advocates, City tycoon Habib Kagimu has secured criminal court summons against three top executives at Standard Chartered Bank (SCB) led by CEO Albert Saltson. The other two officials are Winnie Ojambo and Julius Baluku who heads collections department. Buganda Road Grade One Magistrate has issued summons requiring the trio to turn up on Thursday 5th July without fail at exactly 2:30pm without fail. The criminal case (No. 2668 of 2018) against the trio is in reference to their criminal conduct manifested in their criminal insistence to sell off 3 Kagimu’s company’s prime properties in the city on false pretext that the borrower company has defaulted on paying its loans.
The bank’s claim is separately being challenged as inflated by Kagimu’s company (Habib Oil Ltd) in the High Court via HCCS No. 662/2016 when the dispute first arose. Kagimu’s lawyers argue that the trio have used their influence at the bank to deny their auditors access to information they are requiring to audit all the transactions on the complaint company’s dollar account held in SCB. That on 29th May 2018, Habib Oil Ltd, through its lawyers and auditors asked for information and clarification regarding the outrageous amounts the SCB claimed to be outstanding on the complainant’s loan balance.
The complainant is also suspicious of the curious transactions that had been taking place on their accounts for the preceding 3 years (2013-2016). What makes the whole thing even more suspicious is the fact that after refusing to disclose the demanded information to the company, the SCB two days later (on 31st May 2018) run announcements in newspapers soliciting for buyers to purchase Kagimu’s three assets that were offered as security for the loans.
KAGIMU’S MAN SOPEAKS OUT;
Ahmed Noor Osman, who is Kagimu’s co-director in Habib Oil, says that the information and clarification their lawyers and auditors were demanding for is available in the SCB premises and it’s kept somewhere on the bank’s computer systems. Osman says that this denial of access to client information is contrary to section 16 of Computer Misuse Act 2011. He says the trio’s refusal to disclose the requested information has occasioned substantial injury and damage to Habib Oil Ltd as a company incorporated in Uganda. Osman had previously complained to KCCA asking the ED J Musisi to intervene. We were unable to establish which steps KCCA took regarding this dispute. Besides criminally sanctioning the trio, the complainant company wants court to issue an order directing the bank top management to permit a forensic audit of Habib Oil’s US Dollar account no. 8704014296700. This is the Speke Road branch where Habib Oil has been banking as a high profile customer for the last seven years counting from 2011.
Osman says the company now disputes the amounts of money on the account and the loan amount that is due. That the bank hasn’t been cooperative each time information regarding balances and outstanding loan amount is sought. For months now, Habib Oil has through its auditors been demanding for its bank statements covering the period January 2013 to June 2016 which coincides with the loan period-and SCB officials have been very hostile and very elusive.
Habib Oil as a customer is also disputing “unexplained debit entries” that occurred on 1st August 2016 amounting to $3.8m and $394,651 effected on 31st October 2016. Rather more outrageously, Osman says the bank has also refused to disclose to them “the actual interest rate applicable to the loan for the whole facility duration [2013-2016].” It’s very curious as to why a bank of SCB’s repute would deny a customer access to information regarding the loan amount that is due yet such is a basic right for every bank customer.
The court order summoning MD Albert Saltson & two other top Standard Chartered Bank officials to appear before City Hall Court to defend themselves against criminal allegations Habib Oil Ltd has made against them.
As data controller, the bank basically has an obligation to ensure this information is readily accessible by the customer whenever he or she wishes to have such access for the inspection of his or her bank account. The threatened Habib Kagimu properties that are supposed to be sold by public auction to the highest bidder to recover the SCB money, according to M/S Property & Assets Recovery Trust, include: Plot 18 Wampewo Avenue, Plot 109 Sir Apollo Kaggwa Road and Plot 114-116 Bunyonyi Drive Kiswa Bugolobi. Proceeding under civil suit no. 662.2016 in the High Court, Habib Oil Ltd was permitted by court to lodge caveats on the three properties meaning whoever buys from SCB will never be legally registered as the new owner/successor in title. The major contention in this High Court Civil Suit is that Habib Oil is disputing the loan amounts SCB is claiming as criminally inflated.
Muwema says it’s fraudulent and unethical for SCB to insist on selling his client’s property/securities before that same case can be fully decided by court. Muwema argues that his client is ready to pay the outstanding loan amount upon verification by its auditors to whom SCB has dubiously refused disclosing the required information to enable them authenticate the loan amount being claimed by the bank as outstanding.
Flamboyant Muwema says the SCB maliciously wants to liquidate Habib Oil Ltd’s properties that were registered as security at the commencement of the loan relationship. He says his client has a right to redemption of the mortgage and condemns the bank for arbitrarily advertising the same client’s properties on 4 occasions the most recent one being on 31st May 2018. Muwema vows to stop at nothing until CEO Albert Saltson, Winnie Ojambo and Julius Baluku are criminally prosecuted for obstinately obstructing his client (Habib Oil)’s right to access own customer information available on the bank’s computer systems. Muwema’s outspokenness will further complicate SCB’s efforts to find buyers for the three disputed (loan) security properties. Muwema vows to ensure whoever buys will legally be denied possession and acquisition of good title to any of the three Habib Oil properties that the SCB wants to dubiously sell off.
NOT OUT OF X’TER;
All this comes in the aftermath of two comprehensive stories we published on this news website three months ago hinting on uncertainty at Standard Chartered Bank (See Whistle blower exposes rot at Standard Chartered Bank 11th April 2018 & Ex-Orient Gals Celebrate StanChart bank woes as banks shun Kwagalana 23rd April 2018). Our stories documented and profiled the extent to which Standard Chartered Banks’ future was increasingly becoming uncertain because of the fraudulent activities attributed to a cartel of Relationship Managers at the same bank. In fact, the resultant anxiety saw a number of down town borrowers (the Kwagalana group) blacklisted pending investigations. Yet that isn’t all. A team was sent from SCB Nairobi to review the conduct of business by SCB staffers in the departments concerned with assessment, disbursement and recovery of loans at SCB Uganda. Watch this space for more updates and also see more in the documents taken off the court file. For comments, call/text/whatsapp us on 0703164755.
