Cosase probe: Dr Sudhir Ruparelia once again knocks out BoU

Suhdir appearing before Cosase

By Kagenyi Lukka

From BoU, it has not a story of marvel and wonder ever since it embarked on a destructive mission to destroy crane bank using all kinds of underhand manoeuvres that shot to limelight after its rushed  take over and later sale to dfcu  on January 25th 2017 at an interest free credit of Uganda shillings 200 billion.

With the space being dominated by certain BoU officials and its few scavenging lackeys, they had a chance to create, package and disseminate their own false theories about crane bank: Justine Bagyenda and team would bake their own cake, cut it, serve it and eat it.

The falsehood that Crane bank Limited was heavily undercapitalised, was paraded by BoU officials to justify the closure of Cbl which opened in 1995 and lasted for about two decades.

For the first time since October 2016 when Cbl was closed, its shareholders had never had a chance to tell their own side of the story through a formal channel.

Therefore, Yesterday’s appearance of cbl’s shareholders before parliament’s committee on Commissions, statutory authorities and state enterprises (cosase) served to give them a fair hearing. It also gave the public an opportunity to make a proper judgement as to how BoU deliberately destroyed cbl.

Shareholders had a chance to deflect off the lies that had been regularly fronted by BoU’s supervision department led by the former powerful Executive director, Justine Bagyenda.

Former cbl board chairman, Joseph Biribonwa and his able vice, Dr Sudhir Ruparelia led a star studied team of financial and legal experts to make a leading defense for Uganda’s only indigenous bank.

One can conclude that they left no stone unturned.  Unlike in other interfaces, MP’s on Cosase listened attentively with limited interjection until after Dr Ruparelia’s judicious presentation.

BoU handed the most painful knockout.

Shareholders revealed to the committee that at the time Bank of Uganda rushed to seize Cbl.

There had been strategic discussions with investors who were willing to put more capital in the bank and despite being in the know, BoU didn’t help the process but acted in bad faith to end the fate of crane bank which left Mps shocked.

In the continued exposure of the bad faith on the side of BoU, CBl team explained that BoU had stopped cbl from issuing treasury bills and bonds, ,overdrafts, loans prompting Rubaga North MP legislator to ask what crane bank would be doing after such malicious disablement.

Another punch was thrown at BoU which up to now has failed to explain why $8 billion capital contribution was deposited to BoU and not Cbl yet essentially, it would be for saving cbl. Could it have been swindled?

Furthermore, Dr Sudhir Ruparelia disputed the Ugsh 478 billion spent by BoU as the cost of liquidity support injected in crane bank during the time when Mr Katimbo Mugwanya was in charge as a statutory manager.

Dr Ruparelia demanded to know the source of money and evidence of how it was spent.

Another point of dispute was Uganda shillings 570 billion passed on to dfcu as written off loans and not included in the P&A agreement.

The Committee chairman Abdul Katuntu was shocked to learn that Justine Bagyenda had directed that the reporting on the bad book should not be included on the balance sheet of the buyer of cbl.

This was according to the letter written by Mrs Justine Bagyenda.

MMAKS advocates once again on the spot. This conflicted law firm received Ugx 914 Million for being transaction advisors to BoU in the whole process of disabling cbl.Dr Ruparelia prayed to the committee that Mmaks advocates should return all such monies as such payments were illegal since the commercial court invalidated their participation in matters involving cbl.

The fate of some top BoU officials such as Louis Kasekende, Benedict Ssekabira and other culpable officials could have been sealed yesterday as their knocking out is most likely if Sudhir’s prayers are honoured by Cosase.



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