In a manner that is synonymous with the recent dubious administrative activities that have been happening at Bank of Uganda, fresh reports in the media indicated that two directors are under investigations by State House Anti-Corruption Unit.
The two directors, Benedict Ssekabira, of Financial Markets Development Coordination (FMDC) and Margaret Kasule, director legal services allegedly paid Shs6 billion to two city lawyers – Timothy Masembe Kanyerezi and David Mpanga.
Sources told Eagle Online that Ssekabira and Kasule allegedly ‘sanctioned the payment of Shs6 billion to Masembe and Mpanga in the disguise of legal fees’, however, the money’s intended purpose is ‘to cover all the legal loopholes in the case of Crane Bank Limited takeover and subsequent during receivership.’
The two lawyers have represented and advised BoU in the recent past including in the taking over of Crane Bank by the central bank and its eventual sale to dfcu Bank, however, after a protestation by Dr Sudhir Ruparelia, the Commercial Court disqualified city lawyers Masembe and Mpanga from matters related to Crane Bank.
In his ruling delivered on December 21, 2017, the head of the commercial court division, Justice Wangutusi stated that Mpanga of A.F. Mpanga Advocates and Masembe of MMAKS Advocates acted in violation of the Advocates (Professional Conduct) regulations.
This, therefore, means that this latest dealing between the central bank and these two lawyers is illegal.
It is believed that Bank of Uganda sold Crane Bank to dfcu Bank without minutes recorded from meetings that led to that decision something that is improper and has come to haunt dfcu bank.
“It appears DFCU is struggling and wants to sell some shares but its past transactions that were fraudulent in nature and also involved paying back money to (corrupt) BoU officials are now coming back to bite them,” blogger Titus Seruga said.
Credibility and trustworthiness of a Bank is key to bank investment decisions, once that is found lacking then it’s difficult for any serious businessman to acquire shares,”
