Matooke Republic
Saturday, July 12, 2025
  • Home
  • News
  • Entertainment
  • Gossip
  • Features
  • Business
  • Sports
  • Health
  • Photos
  • Relationships
Matooke Republic
  • Home
  • News
  • Entertainment
  • Gossip
  • Features
  • Business
  • Sports
  • Health
  • Photos
  • Relationships
No Result
View All Result
Matooke Republic
No Result
View All Result

Top BOU officials face incompetence, fraud and corruption charges over Crane Bank

Matooke Republic by Matooke Republic
July 12, 2017
in Featured Stories, News
Reading Time: 3 mins read
Supervision Director Justine Bagyenda is reportedly in for the BoU appealing the case.

Supervision Director Justine Bagyenda is reportedly in for the BoU appealing the case.

Share on FacebookShare on Twitter
Justine Bagyenda, BOU’s Director of Supervision.

The Crane Bank saga has taken a new twist after an aggrieved private citizen has expressed interest in suing Bank of Uganda and its top officials over incompetence, fraud and corruption over the way they handled the receivership of the bank.




Mr Derrick Nsereko has employed the services of Kashilingi Rugaba and Associates, a top law firm to legally pursue the central bank.

The Crane Bank saga started with BOU putting it under receivership on October 20, 2016 and transferring its assets and liabilities to DFCU in January this year. At the beginning of this week, news broke that BoU was suing former Crane Bank owner Sudhir Ruparelia and his Meera Investments to return Shs400bn which they claim was siphoned out of the bank while it was still under their control.

BOU Governor, Tumusiime Mutebile.

Nsereko’s lawyers contend that if this is true, then BoU and its staff were either incompetent or they were involved in fraudulent and corrupt dealings as the governor consistently gave the bank a “clean bill of health.”

RELATED POSTS

State Prosecutor found dead at her home in Kasangati

One shot dead, another arrested in foiled mobile money robbery in Kitintale

“BOU has since 1995 (its year of inception) regularly given CBL a “clean financial bill of health” and reassured the general public of CBL’s sound financial standing. It will be recalled that sometime in 2016, the Governor of BOU publically observed that CBL had a clean financial bill of health. It now transpires that these authoritative assurances were not entirely true.”

“These events clearly demonstrate that BOU has either failed in exercising its statutory mandate in supervising the management and affairs of CBL or BOU’s officers colluded with the management of CBL in doctoring reports of sound financial health of CBL,” Kashilingi wrote the notice of intention to sue that was received by the BoU Governor and Secretary on Wednesday.

In the BOU case, they elaborately weaved a tale of how Dr Ruparelia, Uganda’s richest man was the sole owner of the bank that was taken over by DFCU in January of this year, contrary to documents that indicate that he was just one of several owners of the bank, in line with BOU regulations.

“As a result of BOU’s failings, neglect of duty or intransigence, CBL was largely owned by one individual contrary to the provisions of the FIA, had several fraudulent remittances undetected by BOU (while supervising and issuing clean financial bills), did not remit colossal amounts of money to the National Social Security Fund, thereby depriving workers of their retirement benefits, inter alia,” the letter states.

It is these very grounds BOU is using in their case against Dr. Ruparelia that Mr Nsereko is using to point out gross incompetence on their part.  

“Against this background, our client intends within three working days from the date hereof, to institute a suit against the central bank, seeking declaratory orders on failure to supervise CBL, collusion, corruption and fraud in the issuance of clean financial bills of health in respect of CBL, failure to take any corrective action as enacted under Part IX of the FIA, and orders holding responsible officers of BOU personally liable for infraction of duty and other reliefs.”

Nsereko argues that, the failure in carrying out its statutory duties implies that the entire Banking and Financial sector in Uganda is at risk in the hands of the current BOU leadership.

Preferring criminal charges

Nsereko also wished to ask the Inspector General of Government and the Uganda Police to commence Criminal investigations and proceedings against top BOU officers over failure to uphold the law in regards to this matter.

The officers were noted named but the letter was copied to Governor Tumusiime Mutebile and Ms Justine Bagyenda the Director of Bank supervision who are presumed to be the principle targets.



Related

Tags: Bank Of UgandaJustine BagyendaMutebile
Share2Tweet1Send
Matooke Republic

Matooke Republic

Freshly peeled info from area code 256

Related Posts

Opportunity Bank dominates Agricultural Credit Awards, wins 9 of 16 top honors

by Matooke Republic
1 month ago

...

Gift Shoko, Managing Director of Equity Bank Uganda.

Equity Bank Uganda recognized as Domestic Systemically Important Bank for third consecutive year

by Matooke Republic
2 months ago

...

Dr. Michael Atingi-Ego.

Meet Dr. Michael Atingi-Ego, the newly appointed BoU Governor who has served as Deputy Governor since 2020

by Matooke Republic
5 months ago

...

Bank of Uganda Deputy Governor Michael Atingi-Ego.

Bank of Uganda denies hacking in Shs60 billion fraud scandal, explains circumstances

by Matooke Republic
7 months ago

...

Valentine’s Day: BOU reminds public against using money notes in bouquets

by Matooke Republic
1 year ago

...

Next Post

Late Boney Katatumba’s pilot son arrested for drink driving at midday

Timaya to return this December

RECOMMENDED

Bebe Cool pushes for East African collaboration and use of collective numbers to take over the world musically

July 11, 2025
Fatuma Bbuye Nabiwemba.

State Prosecutor found dead at her home in Kasangati

July 11, 2025
  • 643 Followers
  • 23.9k Followers

MOST VIEWED

  • Here is how to use NIRA’s new online portal to register or renew your national ID

    3923 shares
    Share 1569 Tweet 981
  • DNA test confirms late MP Ssegirinya was father to only 4 of 9 children presented after his death

    97 shares
    Share 39 Tweet 24
  • Kampala University proprietor Prof Kateregga’s wife rejects DNA results indicating one of three children is not his, demands fresh test in the United States

    94 shares
    Share 38 Tweet 24
  • Properties owned by late billionaire Aponye at risk of auction over Shs15 billion loan arrears

    78 shares
    Share 31 Tweet 20
  • Pastor Bugingo’s daughter Doreen Gift awarded scholarship to Arizona State University in the US

    61 shares
    Share 24 Tweet 15
Matooke Republic

Uganda's only free Newspaper. Out every Thursday. Freshly peeled info. kiwatule, Kampala, Uganda.

  • Home
  • News
  • Entertainment
  • Gossip
  • Features
  • Business
  • Sports
  • Health
  • Photos

© Matooke Republic 2024

© Matooke Republic 2024

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.