BoU Probe: DFCU admit Crane Bank was acquired illegally

Officials from Dfcu bank sweated before the parliamentary committee on Commissions, Statutory Authorities and State Enterprises Cosase after lacking critical documents of government valuer and hand over records in the purchase of Crane Bank in 2017.

Appearing before the committee Dfcu officials admitted that they made themselves the valuation report on which the purchase of Crane Bank was based. This is wrong in law and in basic business practice, let alone the purchase of a bank valued beyond a trillion shillings.

However, the subdued dfcu bank team on Thursday contradicted what they said on Wednesday. It turned out that they had to change their testimony which earlier stated that the amount they used to buy Crane bank was based on the report of the government valuer. This means they had lied to Parliament.

This made committee rush out at them and told them that what they did was against the laws.

DFCU Management team was led by CEO Mathias Katamba alongside Juma Kisaame, William Sekabembe (Chief Commercial Officer), Agnes T. Isharaza (Chief Legal Officer), Kate Kiiza (Chief Financial Officer) & Agnes Mayanja (Chief Risk Officer).

Dfcu officials however laid the blame on Bank of Uganda. They said BOU should blamed for any kind of shoddy activity in the process of buying Crane Ban Ltd.

Aruu member of parliament Odonga Otto asked dfcu to display their valuation reports.

“I know what a typical valuation report is, the picture of the building, the location, value of the land, it is a whole report for each property, so we need 46 reports,” said Otto.

On presenting them before the committee, each property had no valuation amount which again made MPs ask them why yet on Wednesday they presented a report that had valuation amount on each property.

“Yesterday we had this property all of the attached with value but the one of today you realize some of them have no value and yet the totals are the same like as of yesterday,” wondered Vincent Waboya, MP Budadiri East.

Buhweju MP Francis Mwijukye also asked: “Here you have just said that you did not see government valuer but the person leading them is saying you saw government valuer so whom shall we believe?”

Officials from Dfcu failed to explained to Parliament why they used a private valuer.

On the same note, Busiiro East MP Medard Sseggona Lubega asked them to explain to the committee who handed over Crane Bank Limited to them officially since the one who was given authority by Bank of Uganda to run it between 2016 and 2017 Edward Katimbo Mugwanya denied to have handed it over to them.
Dfcu bank Executive Director William Sekabembe said that every step was done with the awareness of Mr Katimbo.

“I can confirm for the fact sir, that we had several meetings with him and the statutory manager stayed on for the severally weeks with certain facilities that he was using for the same time,” said Sekabembe.
However, his reply did not satisfy MP Sseggona and asked him to explain to the committee the handover bit. He asked that Sekabembe gives the details of events that led to the take over and events that followed or confirm to how Mugwanya had lied,” asked Sseggona.

Committee chairperson Abdul Kantuntu asked him to show the records which Sekebembe never had.
“I don’t have any record sir,” Sekabembe admitted, leaving the committee in agreement that “Dfcu has no record on handing over,” according to Kantuntu.