The ghost of Crane Bank’s 2016 collapse is clawing its way back, and a UK court is tearing open a scandal that reeks of betrayal. Court filings in London’s High Court point a damning finger at three players: former Bank of Uganda (BoU) supervision chief Justine Bagyenda, former Crane Bank Managing Director Charles Mugerwa, and DFCU Bank’s then-MD Juma Kisaame. They’re accused of rigging records, pulling strings, and orchestrating a heist that gutted one of Uganda’s biggest banks.
This isn’t just a financial flop—it’s a burning question: were our banking guardians looting the vault for their own gain?
**A Planned Plunder?**
Dr. Sudhir Ruparelia, Crane Bank’s majority shareholder, has dropped a bombshell in court, alleging Bagyenda, Mugerwa, and Kisaame cooked the books to sink his empire. Mugerwa is accused of inflating bad loans, painting a false picture of insolvency. Bagyenda, wielding BoU’s regulatory club, rushed the bank into receivership in October 2016, brushing off Ruparelia’s desperate offers to inject fresh capital.
Kisaame, at DFCU’s helm, allegedly swooped in, snapping up Crane Bank’s assets in January 2017 for a measly UGX 200 billion—chump change for a bank once valued in billions. Court documents reveal cozy chats between the trio and DFCU before the sale, screaming of a setup. Was this a rescue or a robbery?
**Who Were They Serving?**
Let’s cut to the chase: were Bagyenda, Mugerwa, and Kisaame protecting Uganda’s financial system or their own wallets? Bagyenda’s supervision reports were a mess—riddled with holes and contradictions that don’t add up. Mugerwa’s betrayal, inflating Crane Bank’s woes, smells of sabotage from within. Kisaame’s role in DFCU’s bargain buy, which catapulted it to Uganda’s second-largest bank, looks too slick to be innocent.
The deal left shareholders and depositors in the dust while DFCU raked in profits. Bagyenda’s shadowy wealth, whispered about for years, only deepens the stench. BoU’s refusal to explain fuels suspicions of a calculated hit, not a regulatory misstep. Who was pulling the strings, and whose pockets got lined?
**The UK Court Showdown**
Ruparelia’s fighting back in London’s Commercial Court, suing DFCU and indirectly BoU for what he calls a daylight robbery. With DFCU’s parent company Norfinance based in the UK, the court offers a neutral stage to expose the truth. Ruparelia claims the trio’s actions torched his business empire, demanding damages exceeding £170 million. This isn’t just about one man’s loss—it’s about unmasking a system that let a major bank crumble under questionable circumstances. Legal experts say the case could set a global precedent, forcing regulators in emerging markets to face scrutiny. Uganda’s financial oversight is on trial, and the world is watching.
**A Bleeding Banking Sector**
The Crane Bank saga rips open wounds in Uganda’s banking sector. Bagyenda’s tainted tenure, dogged by allegations of unexplained wealth, has long eroded trust. Why was Crane Bank rushed to the chopping block? Why did BoU snub viable rescue plans? The central bank’s silence is deafening, and DFCU’s windfall raises eyebrows. This isn’t just about one bank—it’s about every Ugandan who trusts banks with their hard-earned cash. The public deserves to know why a cornerstone of the economy was dismantled and handed to a rival for peanuts. We reached out to BoU, DFCU, Bagyenda, Mugerwa, and Kisaame. Their response? Crickets. Hiding behind “ongoing litigation” won’t cut it when public trust is bleeding out.
**The Bigger Picture**
Crane Bank’s fall exposes a rotten core in Uganda’s financial system. BoU’s unchecked power, coupled with insider dealings, threatens every depositor. The allegations suggest a pattern—regulators and bankers colluding to enrich a select few while ordinary Ugandans pay the price. If proven, this scandal could spark reforms across Africa, where banking crises often hide dirty deals. But for now, Ugandans are left asking: who protects us when the protectors are the problem?
**The Way Forward**
To stop this rot, Uganda needs action, not excuses:
1. **Probe the Plot**: Parliament must launch a public inquiry, grilling Bagyenda, Kisaame, and others for any dirty deals. No stone left unturned.
2. **Overhaul BoU**: Enforce strict, transparent oversight to stop regulators from playing god with banks.
3. **Shield Whistleblowers**: Protect those exposing financial scams from retaliation, ensuring accountability.
4. **Demand Answers**: BoU and DFCU must come clean on the Crane Bank deal, no more dodging.
5. **Pass Laws**: Enact reforms to safeguard depositors and shareholders from shady takeovers.
**No Hiding Now**
The Crane Bank saga is a screaming wake-up call. Were Bagyenda, Mugerwa, and Kisaame clumsy bureaucrats or cold-blooded saboteurs? The UK court will dig, but Uganda can’t sit idle. Our banking system’s credibility is on life support, and only bold, swift moves will save it. The public deserves answers, not silence. *Watchdog Uganda will keep digging.*
Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
