DEI Pharmacy Loses Round One in Shs242bn Equity Bank Loan Battle
The Kampala High Court dismissed a lawsuit by DEI Industries against Equity Bank regarding a Shs242 billion loan dispute. The court rejected claims that the audit process overseen by the Institute of Certified Public Accountants of Uganda was compromised.
Why it matters
This ruling impacts the financial accountability and debt reconciliation processes for large-scale infrastructure projects in Uganda.
Kampala High Court has dismissed an application by businessman Matthias Magoola and his companies seeking to remove the accountants’ professional body from an audit process in their roughly Shs242 billion loan dispute with Equity Bank.
Commercial Court Judge Susan Abinyo ruled that DEI Industries International Ltd, DEI Biopharma Ltd and Magoola had failed to prove allegations that the integrity and independence of the Institute of Certified Public Accountants of Uganda (ICPAU) had been compromised.
The applicants wanted the court to revoke an earlier order under which ICPAU nominated an independent firm to audit loans extended by Equity Bank Uganda and Equity Bank Kenya.
“This application lacks merit,” Abinyo said in a July 29 ruling, dismissing it with costs in the cause.
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