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Bank of Uganda on the Verge of Selling Assets of Defunct Crane Bank

posted onNovember 13, 2020

Emmanuel Mutebile, the Governor, Bank of Uganda has called upon clients of Crane Bank with pending loans to clear their obligations because the Central Bank is in the final stages of selling assets of the defunct bank. 

Mutebile in a statement said that Bank of Uganda had taken over the liquidation process of Crane Bank that was closed on 20th October 2016 with calls to all those that had pending loans to make arrangements to clear up their dues.

“All borrowers of CBL whose loans were transferred to dfcu Bank under the purchase of assets and assumption of liabilities agreement between CBL in receivership and dfcu Bank Ltd must continue to service their loan obligations with dfcu Bank Ltd,” he said. 

He added that all other borrowers of CBL whose loans were not transferred to dfcu Bank must service their loans by paying into the designated collection accounts at Bank of Uganda.

"On the other hand, CBL borrowers whose loans were not transferred to dfcu Bank Ltd can access statement of their indebtness from the office of the Director Commercial Banking at Bank of Uganda headquarters," Mutebile said. 

Relatedly, Bank of Uganda further noted that Creditors of CBL will be notified of the procedures for presentation of their claims to the liquidator.

The closure of Crane Bank was subject of an investigation by Parliament’s Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) that discovered that Bank of Uganda injected in Shs478Bn to save the Bank, however when the move failed, Crane Bank was sold to dfcu Bank at Shs200Bn.

In a special forensic audit conducted by Auditor General John Muwanga, on the procedures carried out by Bank of Uganda to sell off seven defunct banks including Crane Bank, the auditors raised queries on the criteria used by the Central Bank to sell Crane Bank at Shs200Bn.

Crane Bank Limited shareholder, Sudhir Rupaleria protested the manner in which Bank of Uganda fraudulently sold his bank. 


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