Dfcu Bank To Challenge 40 Billion High Court Ruling, Appeals Land Title Order In Ntaganda Dispute”

Dfcu Bank is preparing to challenge a recent High Court decision that held it accountable for a payment exceeding 34 billion Ugandan Shillings, equivalent to around $9.5 million, to businessman Ephraim Ntaganda and his company, Excellent Assorted Manufacturers.

On August 16, 2023, High Court Judge Boniface Wamala rendered the verdict, which also included an order for the bank to return various land titles to Mr. Ntaganda and his company. Dfcu Bank has expressed its disagreement with the judgment and is determined to reverse it by pursuing an appeal.

Jude Kansiime, Dfcu Bank’s head of marketing, confirmed the bank’s stance, stating, “The judgment was rendered against Dfcu, and the bank is planning to appeal it. Dfcu Bank will continue to uphold its rights within the boundaries of the law.”

This legal case encompasses several objections raised by Mr. Ntaganda, including disputes related to deductions from his personal account and his company’s account, previously under the ownership of Crane Bank. Dfcu Bank took over numerous assets of Crane Bank after it was shut down by the Bank of Uganda.

Mr. Ntaganda’s legal argument was rooted in his claim that Crane Bank had provided him with letters for annual sign-offs, which he trusted were prepared honestly and in good faith. The court determined that Dfcu Bank, through the now-defunct Crane Bank, had breached contractual and fiduciary duties by handling Ntaganda’s accounts “in an unlawful, unauthorized, and/or irregular manner.”

As part of the court’s decision, Judge Wamala mandated Dfcu Bank to make payments totaling $2.9 million and 9.9 billion Ugandan Shillings to Mr. Ntaganda and his company, respectively. The bank was also directed to release 2.75 billion Ugandan Shillings held by the bank to both Mr. Ntaganda and Excellent Assorted Manufacturers Ltd.

Moreover, Dfcu Bank was ordered to pay 500 million Ugandan Shillings as general damages to Mr. Ntaganda and his company, along with interest on the general damages at a rate of eight percent per annum from the judgment date until full payment.

Furthermore, the bank was instructed to pay interest on the sum of 3.1 billion Ugandan Shillings at a rate of 24 percent per annum from the judgment date until full payment.

The bank was granted a 45-day window from the judgment date to release certificates of title for various properties, as specified in the court’s directives.

While Dfcu Bank endeavors to challenge the High Court’s decision through the appeals process, this case serves as a reminder of the intricate legal challenges that can arise within the banking and financial sector.