Bank of Uganda officials face COSASE over the closure of Crane bank

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The Bank of Uganda big wigs have today returned to parliament as the inquest into the controversial transfer of Crane Bank to DFCU Bank takes center stage. BOU closed Crane Bank which belonged to city tycoon Sudhir Rupaleria, and controversially sold it DFCU Bank in January 2017 for a paltry Shs 200 billion.


Yesterday, Mr Katimbo Mugwanya, a former director at BoU who was the mediate negotiator  for the sale of Crane Bank, admitted that he had bungled up the calculations on how the money that was injected in Crane Bank was calculated which left the committee in no option but  to adjourn the hearing to today.

Governor Mr Emmanuel Tumusiime Mutebile told MPs that he that he did not have figures regarding Crane Bank’s undercapitalization but was contradicted by Mr Benedict Ssekabira, the Director Financial Markets Coordination, who said Crane Bank required a further injection of Shs157b for it to remain afloat.

The Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) is conducting an inquiry into the conduct of Bank of Uganda and it’s officials in the closure of seven banks, with some ending up in massive controversy.

These banks include Teefe Bank (1993), International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and the sale of Crane Bank Ltd (CBL) to dfcu (2016).