KAMPALA, Uganda | The Supreme Court has dismissed an appeal to take over and liquidate the National Bank of Commerce.

This was in the case between businessman Humphrey Nzeyi against Bank of Uganda and the government of Uganda. The Supreme Court dismissed the application for lack of authority, ruling that the case arose from a petition filed wrongly before the Constitutional Court and therefore could have been filed in the High Court.

In 2021, businessman Humphrey Nzeyi challenged Bank of Uganda’s select financial institutions’ act of liquidating and selling the National Bank of Commerce to Crane Bank Limited due to poor governance and financial difficulties after he was a shareholder and the director of the bank.

He further alleged that Bank of Uganda’s actions denied National Bank of Commerce a fair hearing, which resulted in illegal and compulsory deprivation of his property in the National Bank of Commerce but was earlier dismissed by the Constitutional Court in 2020; he was dissatisfied with the ruling, and he petitioned the Supreme Court.

Justices Lillian Tibatemwa, Christopher Izama Madrama, Catherine Bamugemereire, Monica Mugenyi, Elizabeth Musoke and Mike Chibita ruled that the Supreme Court lacks authority to decide on petitions that merely enforce constitutional provisions without requiring interpretation.

”Thus, in the given circumstances of this appeal, where the ground of appeal was not specifically on the interpretation of the constitution but rather the infringement of constitutional rights, I am of the well-considered opinion that the matter would best be settled through a trial process before a court of competent jurisdiction. I would, just like the constitutional court did, decline to make a declaration on the matter, which I would refer for trial at the appropriate court,” the justices ruled

The justices further ruled that Bank of Uganda is empowered to supervise and regulate financial institutions, with its primary concern being the protection of depositors’ money. However, it’s the judges’ finding that Bank of Uganda should be dealt with in an ordinary suit before the High Court.

Justices held that , ‘As a result, since all the grounds of this appeal have failed, I would dismiss this appeal , bearing in mind the circumstances of this appeal, where the NBC, the subject of this appeal, was liquidated and wound up a long time ago. Each party shall bear costs.’