Attempts by Bank of Uganda to liquidate Crane Bank are illegal and could cost taxpayers more money, should it go ahead, several lawyers that CEO East Africa magazine has spoken to have said. Yesterday, the Central Bank put an announcement on its social media channels, purporting to place Crane Bank under liquidation. “Bank of Uganda (BoU) took over management of Crane Bank Ltd (CBL) on October 20, 2016 and subsequently progressed it into receivership on January 24, 2017. In exercise of its powers under section 99 (1) & (2) of the Financial Institutions Act, 2004, BoU has now placed CBL…
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Slightly over two years after an investigation by the Parliamentary Public Accounts Committee on Commissions, State Authorities and State Enterprises (PAC – COSASE) ended, with stern recommendations to punish Bank of Uganda officials implicated in the wrongful and illegal closure and sale of 7 defunct banks, shareholders of the closed banks could be about to see justice served. The Criminal Investigations Department (CID) of Police has confirmed that it has started investigations into the matter with a view to bringing the accused officials to court to face justice. The investigations follow a petition by a one Nelson Habaasa and…
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Kampala Associated Advocates, the law firm representing Dr. Sudhir Ruparelia, has dismissed as “inaccurate and false,” the contents of a media statement made by Bank of Uganda regarding its intended appeal against their two-time loss to Dr. Sudhir, most recently in the Court of Appeal. On Tuesday, June 23rd, 2020, three Court of Appeal Justices, Alphonse Owiny Dollo; Cheborion Barishaki and Stephen Musota unanimously dismissed all the nine (9) appeal grounds on which Bank of Uganda through Crane Bank (In Receivership) had sought to overturn an earlier August 26th, 2019 ruling by Commercial Court Judge, Hon Mr. Justice David K….
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2015: For much of 2015, interest rates rose sharply, opening the year at an average 21.69% and by February 2016, had reached a 4-year high of 25.22%. This was partly due to a Bank of Uganda spike in the Central Bank Rate which opened 2015 at 11% but closed 2015 at a 3-year high of 17%. This dragged on until March 2016. As night follows day, borrowers started defaulting across the industry. Crane Bank, which was the fourth-largest lender at the time, got severely injured.March 2016: As a result of the default on the loans, BoU wrote to CBL directing…
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City Mogul, Sudhir Ruparelia of the Ruparelia Group is in up mood having defeated Bank of Uganda’s attempt to take over properties formerly housing the defunct Crane Bank. Sudhir has since 2017 been fighting a protracted legal battle over claims that he withdrew over UGX397 billion to construct the 48 branches. On 20th October 2016 the Bank of Uganda took over management of Crane Bank as per the Financial Institution ACT 2004. The bank was later placed under receivership as per section 94 of the Financial Institutions Act.From then, Crane Bank was conducting banking services but under the management and…
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Ruparelia Group founder and Chairman Dr. Sudhir Ruparelia has said he is ready to legally pursue Bank of Uganda and make them pay for illegally taking over his bank, till the very end. This is the first time Dr Ruparelia is publicly commenting about Bank of Uganda’s planned appeal, following the dismissal of the central bank’s UGX397 billion case against the businessman over “being incompetently in court.” Commercial Court’s Hon Mr. Justice David K. Wangutusi, on Monday August 26th dismissed HCCS 493 of 2017, saying BoU “did not have jurisdiction to file HCCS No. 493 of 2017” and that the…
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