BOU Probe: DFCU Took Over Crane Bank With No Handover Report

Legislators sitting on the Parliamentary Committe on Commissions, Statutory Authorities and State Enterprises (COSASE) have heard that DFCU Bank took over Crane Bank Limited without a handover report from Bank of Uganda.

In 2017, DFCU Bank took over the Management of Crane Bank with all its assets having bought the bank at Shs 200bn on condition that they would sale Crane Bank bad loans over time.

While appearing before the committee on Thursday, officials from DFCU led by the CEO, Mathias Katamba and the Executive Director, William Ssekabembe revealed that despite receiving different department reports, there was no final handover report given to them by the then BOU Statutory Manager, Katimbo Mugwanya.

“This transaction of the acquisition of Crane Bank, we did proper planning and as part of the planning, we had different work streams of its handover, we had teams working on credit, business, facilities and every team played a role in terms of handover process,” Ssekabembe said.

Ssekabembe said, “For example, when they were handing over the credit files, we received them and signed for them, so if we look at the different work scripts, we can confirm that there are records that show certain aspects were handed over, but looking at it as a broad document, that one we don’t have.”

The revelation left legislators on the committee wondering what then it was that DFCU received from BOU since they didn’t receive the handover report detailing all the assets and liabilities.

Kasiro county MP, Elijah Okupa inquired whether Katimbo Mugwanya was physically at Crane Bank head office at the time the bank was handed over.

Appearing before the committee last year, Mugwanya told the members that the day DFCU took over Crane Bank, he was on his farm and received a message from a colleague alerting him of the take over and on return, his tenure had been terminated.

In response, Ssekabembe noted that, “At the time the bank was taken over, Mr. Katimbo Mugwanya was at the bank’s main branch.”

The MPs could not fathom the idea that a whole bank with 46 branches would be taken over casually without a formal handover report.