Former lawmaker, Haji Muyanja Mbabaali, has revealed that city bank Diamond Trust Bank (DTB) lured him into investing in a dubious deal, something he says, threatens to make him bankrup.
Mbabali given a 30-day ultimatum to pay up all his debts or risk losing five of his properties spread across Kampala, Masaka and Mpigi districts.
“I was a customer for DTB and they are my clients at Masaka for the last 10 years. One day they came to me with a business deal that there was a hostel being sold at UGX. 7 billion. My account had UGX. 1. billion but they insisted on me buying, I insisted on not buying the idea but they suggested it was a good deal,” An online newspaper quotes Haji Mbabaali.
He says the financial institution is trying to auction his properties without following the law.
Mbabali is not the first prominent person to complain about DTB.
City tycoon, Hamis Kiggundu of Ham Enterprises had banked with Diamond Trust Bank (DTB) for close to 15 years but in 2019 when they carried out an audit on their accounts, it was revealed that the bank had unlawfully and excessively withdrawn their accounts to a tune of Shs 34 billion and $23 million in a period of 10 years.
When the company sued to reclaim the money, High court duly ruled that DTB had flouted the banking laws through several illegalities and, therefore, ordered the bank to refund the money to Ham Enterprises.
