By Kagenyi Lukka
The future of DFCU bank has been thrown into a crisis. It is trying to come to terms with the sudden pulling out of it’s second majority shareholder, the Commonwealth Development Corporation (CDC) which announced that it was cutting ties with the bank last week.
As this news was sinking in, further reports indicated that the Chief
Executive Officer of Arise Bv, the group’s majority shareholder was calling it quits following controversial transactions that punctuated the buying of crane bank at a negligible price of Uganda shillings 200 billion.
Deepak Malik has who joined Norfund in 2003.Norfund is one of the companies that make up Arise Bv which owns 58% of DFCU bank.
He rose to become the chief executive officer following the formation of Arise BV.
A look at his work experience indicates that he worked for some time in Southern Africa as the head of Norwegian Investment arm.
He also held senior executive and management positions at the consolidated Zambian copper mines.
Further still, his profile shows that he worked at the Zambian development bank only to leave after dragging the bank into liquidity.
This background draws me to why I think that there is a looming and deeper seated crisis at DFCU bank, a subsidiary of DFCU group.
The group’s chairman, Elly Karuhanga was on Saturday involved in Public relations exercise for the embattled bank while appearing in the popular radio current affairs program, the capital gang on Capital FM.
Karuhanga seemed to blame the media for creating a feeling with in the public that there was misery at dfcu bank.
One of the panellists wondered if there can be smoke without fire underscoring the possibility of tribulations that are at the institution.
Perhaps what Karuhanga failed to tell the public is why dfcu bank is of late under so much fire ever since the contemptuous buying of crane bank which was Uganda’s fourth largest bank, option and why CDC would opt to withdraw at a time when the bank is boastful of profitability and a bigger asset base.
Wouldn’t this be a time when shareholders such as CDC would be confident to invest a lot more in profitable bank that dfcu has become of recent thanks to the free assets that it acquired from Bank of Uganda as a receiver of Crane bank.
Ultimately, the revolt by CDC can’t leave dfcu bank the same.
Being the Chief Executive Officer of Arise Bv, Mr. Deepak can’t claim not to have been in the know of what his subordinates including dfcu bank MD Kisaame were doing at the bank’s tower in the process of taking over crane bank.
While Deepak may not have been physically involved in the unfair process and deals of acquiring dfcu for a song, Responsibility entailed that he should have done pressed for due diligence to be done by those under him.
This for a simple reason that, a bad, costly and dirty deal like the crane bank one reflects negatively on his score card as an executive officer of the bank’s majority shareholder.
Finally, every controversy will have an explanation like in the case of the crisis at dfcu bank. The departure by the second majority shareholder, the resignation of Malik Deepak underline a deep seated crisis at the institution that is grappling to exorcise itself of the crane bank ghost.
Kagenyi Lukka is a current affairs analyst and the next MP,Ikiiki Constituency.