By Sadique Bamwita
KAMPALA
High court in Kampala has dismissed an application filed by businessman, Dr. Matthias Magoola seeking orders for reconciliation and audit of his loan and current accounts held with Equity Bank Uganda.
His application was dismissed after Justice Susan Abinyo found out that his application lacked merit and would delay the disposal of the main suit.
“This court finds that this application lacks merit and is dismissed with costs in the cause,” Justice Abinyo ruled.
Among the remedies Magoola had sought in court include; an order compelling the bank to account for and reconcile his loan facilities to determine the actual outstanding debt, as well as orders for variation, consolidation and restructuring of the loans.
He also applied for a permanent injunction restraining the bank from enforcing recovery measures pending determination of the main suit.
In August 2024, Magoola filed an application against Equity Bank Uganda Limited and Equity Bank, challenging the handling of his loan accounts.
In December 2024, KPMG was appointed to conduct a comprehensive audit of the loan arrangements and determine the outstanding amounts. The audit report was later submitted to court.
However, Magoola subsequently sought to set aside the appointment of KPMG, requesting that the Institute of Certified Public Accountants of Uganda (ICPAU) nominate an independent audit firm.
The court later allowed the change and directed ICPAU to appoint another auditor.
In their rejoinder the bank argued that the dispute revolves around reconciliation of accounts, alleged wrongful debits and determination of outstanding loan obligations matters that can only be resolved through a full audit and trial.
The bank also dismissed allegations of predatory lending, maintaining that such claims must be subjected to audit and evidentiary scrutiny.
Justice Abinyo held that allowing continuous amendments based on new developments would set a bad precedent and delay justice.
“This court finds that if a party seeks amendment of pleadings whenever new developments arise, it would cause unnecessary delays in the disposal of cases,” she ruled.
She further noted that any additional evidence regarding payments made after filing of the suit can be presented during the main hearing.
The ruling means the matter will proceed to full trial for determination of the outstanding loan dispute between the parties.
