Seruga Titus: BoU Injects Shs 475Bn In Crane Bank For Three Months But Fails To Account For It

By Seruga Titus

One would assume that at the time of closure Crane Bank had cash in all its branches, Crane Bank had cash in safes, and money at the Central Bank, what happened to this money? Did it all go to BoU officials as goodwill, under normal circumstances an audit should have been done in the presence of previous crane bank management.

The auditor generals report put it clear that 270 billion shillings out of the 475 billion injected into Crane bank during the three months was never accounted for, was this classified expenditure?

How could Crane Bank limited (In Receivership) under management of a statutory manager appointed by Bank of Uganda spend 475 million shillings in just three months? One would argue that they paid off creditors, can we know which creditors were paid and how much was paid?

Bank of Uganda auctioned and sold CBL to DFCU, the central bank had no inventory report of CBL during the sale of CBL, they relied on audits done by DFCU Bank after almost four months of management by the statutory manager. This DFCU audit didn’t indicate anywhere money found in Bank branches, it’s didn’t indicate balance on BoU account.

Anyway BoU sold the CBL to DFCU at 200 billion shillings, surprisingly DFCU didn’t pay anything to Bank of Uganda. Who took the 500 billion bad book of Crane Bank, this alone was enough to pay off Creditors and leave a balance as per accountability provided to the Auditor general.

Crane Bank Limited 48 Branches were sold to DFCU at only 10 billion shillings, a few weeks down the road DFCU puts the value at 50 billion, where did the 40 billion come from in just weeks? Did BoU officials get something on the side as a result if undervalued branches?
During Parliamentary proceedings, Parliament heard that there were no documents to support the auction, there were no minutes of an pre-sale meetings. Business was done on WhatsApp and messages were deleted.

Enough of this, the central Bank can not go down this low.

The latest act of trying to liquidate a company that is not in control of the Central Bank is another act of madness that will lead to legal challenges.
How do we completely clean Bank of Uganda from the mafia? How do we make individuals accountable for their errors that cost Uganda money?

Leave a Reply