Dennis Daniel Ssemugenyi, a Ugandan businessman based in Canada is facing a legal battle with DFCU Bank over frozen accounts, raising concerns of possible sabotage. Ssemugenyi, who co-founded the Dennis Daniel Investment Group (DDIGL) ten years ago after he left the East African country for greener pastures in North America, has been actively investing in Uganda while supporting various philanthropic efforts, including funding education for over 1,000 children.
In partnership with European investors, Ssemugenyi launched DDIGL, a firm that claims to have helped more than 600 companies worldwide by providing entrepreneurs with affordable capital and strategic assets.
Ssemugenyi through DDGIL boasts a credible investment portfolio that spans sectors like real estate, mineral exploration, oil and gas, agriculture, and infrastructure development. With branches in several countries, including the UK, US, Canada, and Uganda, the firm has played a key role in major Ugandan infrastructural projects such as the Kampala-Jinja Expressway and electricity sector development.
Frozen Accounts and Suspected Sabotage
In 2018, Ssemugenyi opened accounts with Dfcu Bank to facilitate his investments in Uganda and manage his charitable endeavours. However, in 2020, he applied for a mortgage loan of UGX 226 million through Dfcu to purchase a condominium in Kampala for his Australian-based relative, securing the loan with two properties in Wakiso District.
Despite repaying more than half of the loan within two and a half years far earlier than the 13-year repayment period, Ssemugenyi alleges that Dfcu failed to release his property titles, the latter arguing that he had not formally requested the documents, a claim he disputes. Ssemugenyi says he never needed to appear in person to secure the loan initially.
The situation worsened in July 2023 when Ssemugenyi discovered his accounts had been frozen. The bank cited Uganda’s requirement for national ID verification and claimed that large transactions exceeding $2 million triggered concerns over money laundering.
However, Ssemugenyi contends that the freeze is linked to his company’s growing interest in government projects, alleging that DFCU officials demanded bribes to unlock his accounts. He asserts that despite the freeze, the bank continued to withdraw funds from his accounts without his consent.
The frozen accounts according to the investor have led to significant setbacks for both his business and charitable ventures. Key projects, including a factory in Semuto and an agro-processing plant in Nakaseke, have stalled, while hundreds of children relying on his scholarships are left in limbo.
Ssemugenyi suspects a possibility of foul play by individuals within the bank, possibly colluding with external actors, who have reportedly solicited bribes to unfreeze his accounts.
Appeals to ISO, Gen. Saleh, and FIA
In response, Ssemugenyi petitioned the Internal Security Organisation (ISO) and sought intervention from Gen. Salim Saleh, pointing to the bank’s actions as economic sabotage. His appeal outlines how the account freeze disrupts crucial infrastructure and social projects in Uganda, hindering national development goals.
Ssemugenyi also reached out to the Financial Intelligence Authority (FIA) for clarification on the freeze, receiving a request from FIA for detailed transaction documentation. However, DFCU’s subsequent explanations for freezing the accounts have shifted, deepening his suspicions of fraudulent intent.
Dfcu Responds
In a statement to the press, DFCU Bank acknowledged the account freeze, citing compliance with a court order. The bank affirmed its commitment to legal obligations but refrained from providing detailed comments, citing the ongoing nature of the legal matter.
For Ssemugenyi, the ordeal with DFCU Bank has left his investments and philanthropic initiatives in Uganda in jeopardy. As he continues to fight for access to his funds and property titles, the future of his ventures and the lives of many Ugandans who depend on his support hang in the balance.
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