By Kagenyi Lukka
The Dfcu Bank has asked Bank of Uganda to take back titles for the 48 properties that the bank had illegally taken from Crane Bank without knowing that they belong to Meera Investments Ltd, a company belonging to city tycoon, Sudhir Ruparelia.
The development was first denied by Dfcu has now been confirmed by the Central Bank in its annual report for the financial year, 2018/2019.
“Dfcu in a letter dated September 12, 2019 communicated its decision to exercise its option to rescind its interest in purchasing the 48 properties pursuant to clause 8.7 of the agreement,” the Central Bank report, which touches on a number of financial and commercial bank issues, noted.
According to the report, which is signed by the Governor of the Central Bank, Prof. Emmanuel Mutebile, it is now confirmed that Dfcu will exit the properties in the wake of tough legal battles that were instituted by Sudhir to save his property from the greedy alliance of Dfcu and BoU.
“As part of rescinding of this purchase, Dfcu will return to BoU certificates of title for Meera Investments Limited, properties and requires BoU to pay to Dfcu Bank Limited the net book value of the properties recorded in the assets and inventory compilation report as at October 20, 2016,” BoU’s annual report, states.
It has also been noted that Dfcu’s managing director, Mathias Katamba has since written to Mutebile, confirming the development, and that, the Central Bank, will pay sh48b tax payers’ money to Dfcu as a result of this failed transaction as the sale of Crane Bank fallout between the Central Bank and Dfcu deepens.
The BoU report notes that the decision to vomit Meera Investment Ltd property has been taken as a result of the merging pressure from court following a recent ruling where Sudhir beat the Central Bank hands down after the country’s top bank had dragged Crane Bank in receivership to court over the properties.
This development from the Central Bank’s annual report also confirms a recent development that Dfcu had already instructed staff operating from Meera Properties that housed Crane Bank branches, which they had taken over illegally, to vacate.
Sudhir had disputed tis illegal takeover of Meera properties, but the Central Bank and Dfcu had remained adamant, until court ordered Dfcu to vacate after it emerged that a city law firm, Sebalu& Lule Advoates had misled Dfcu in taking over the buildings.
The law firm has since been banned from representing Dfcu Bank in the dispute after conflict of interest was cited.
This development proves the high level of incompetency at the Central Bank and also shades light on the mafia-like circumstances that led to the fraudulent sale of Crane Bank to Dfcu.
It also casts doubt on the acquisition process of Crane Bank by Dfcu.
The author is a current affairs analyst and aspiring MP Ikiiki County in Budaka district.