NO ESCAPE FROM AUDIT! Court Rejects Magoola’s Bid To Stop ICPAU Probe In Equity Bank Loan Fight
A Ugandan court has dismissed a businessman's attempt to block an audit of his loan accounts with Equity Bank. The court ruled that the appointment of an independent auditor by the Institute of Certified Public Accountants of Uganda was valid and did not require further consultation with the parties involved.
Why it matters
The ruling reinforces judicial authority in financial disputes and clarifies the independence of professional regulatory bodies in legal proceedings.
The Commercial Division of the High Court has dismissed an application by businessman Mathias Magoola and his companies, Dei Biopharma Ltd and DEI Industries International Ltd, in which they sought to have the Institute of Certified Public Accountants of Uganda (ICPAU) declared lacking in independence and integrity.
The application arose from an ongoing court case over loan facilities between Magoola, his companies, and Equity Bank Uganda and Equity Bank Kenya. ICPAU had been appointed by the court to nominate an independent audit firm to review the disputed loan accounts.
In 2024, Magoola petitioned the court seeking an account and reconciliation of his loan and current accounts held with Equity Bank. He asked the court to determine the actual amount owed under the credit facilities, examine loan variations, consolidations and restructurings, and order the bank to refund any money that may have been unlawfully debited from his accounts.
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