Commonwealth Development Fund (CDC) is still stuck with its 9.97 per cent shares in Dfcu Bank as the potential buyer, Investment Fund for Development Countries (IDC), a Danish company, insists that Dfcu avails minutes regarding its purchase of Crane Bank on January 25, 2017.
Following a series of bad press surrounding the controversial take over, CDC, a British development organ wanted out, and found a buyer for the shares. In fact, Dfcu had already made the announcement on December19, last year that CDC was selling its 74,589,276 shares (9.97 per cent), but now there is a hiccup.
The Danish company wants to look at the Crane Bank sale minutes and Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) that probed the controversial sale and take over of seven commercial banks found that Bank of Uganda had transferred Crane Bank assets to Dfcu without any minutes written!
Then COSASE Chairman Abdu Katuntu found it strange that BoU and Dfcu could agree on a transaction of that magnitude without any minutes. BoU’s former Executive Director in charge of Commercial Bank Supervision Justine Bagyenda confirmed to the shock of Parliament that the transaction was concluded via telephone.
On top of the COSASE finding the Crane Bank sale dubious, a report by the Auditor General pointed at collusion and corruption among BoU officials that handled the bank sales and the beneficiaries of the deals. The AG’s reported noted that procedures laid out in the Financial Institutions Act 2004 were flouted.
As the deal hits a snag, online outlet Eagle.co.ug has reported that Parliament has rejected a secret move by Dfcu to have the Hansard, Parliament’s book of records edited to expunge the section implicating them in having bought Crane Bank without any minutes.