By Watchdog reporter
As Ugandans continue to ask pertinent questions over the management of the Bank of Uganda, more skeletons are coming out of the closets which are leaving the management of the central bank in shame for their serious lack of competence to run the supervisor of the financial sector in Uganda.
Just as people are wondering how the story of Crane Bank’s 20 years in the business could come from hero to zero under the watch of Bank of Uganda, now it is emerging that the three months the central bank was in charge of Crane Bank, it was run with reckless abandon as its new managers blow up the bank’s budget never seen in the history of Crane Bank.
This website understands that while Sudhir Ruparelia and others accused of running down the bank were in charge, they were using sh90 billion on average per year to run the defunct bank. The amount included its expansion programs and advertising which many critics have blamed on Sudhir’s ambitious plans.
However, Watchdog Uganda has been reliably informed that for the three months the Central Bank was in charge of Crane Bank before handing it over to DfCU at no cost, the BoU managers used a whooping Sh125 billion. A whooping Sh125 billion in three months.
This, according to banking experts, is unimaginable given the fact that BoU had taken over the bank citing mismanagement.
The cost of running CB in receivership is part of the cost BoU wants Sudhir to pay before they can bury Crane Bank for good.
The Central Bank which is receiving a backlash for its handling of the Crane Bank saga, has taken the owner of the bank Sudhir to court wanting to force him to pay up to a tune of Sh400 billion the bank incurred in losses as a way of balancing the books.
Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
