Finance

Finance (410)

Market Plaza Offering Two Rent Free Months To Tenants Booking In August

Businesses in Uganda, like it is the world over, have been battered by the coronavirus (COVID-19) pandemic and are looking at ways they can wake up from the economic death the virus put them.

The real estate sector was not spared. Many tenants have had to close their businesses and operation. Some are struggling or unable to meet their rent bills and are calling on property owners to be lenient when demanding for rent arrears.

Well aware of the complicated economic situation affecting trade, some landlords are working out a win-win situation where they can help tenants afford to let their property premises. They are offering discounts and other offers.

Crane Management Services (CMS), the real estate arm of Ruparelia Group of Companies, is one such landlord who understands the economic hardships Ugandans are going through due to the COVID-19 crisis.

The company managing arcades, warehouses, apartments and other commercial properties has decided to put up an offer for any person who wants to rent office space on their Market Plaza commercial building.

Market Plaza, located Market Street within the heart of Kampala city, has 250 shops, 110 offices and a wide parking space to accommodate over 100 cars.

What you have to do is simple, just book the office space in the first two weeks of August and you get two months’ rent-free. For more information contact CMS on +256752 711 750/ This email address is being protected from spambots. You need JavaScript enabled to view it..    

This offer comes at a time when traders in Kampala are having a push and pull relationship with their landlords over rent arrears. After almost five months under COVID19 lockdown, many traders are short of money to afford the rent bill.

Therefore, discounts and offers as such that Crane Management Services if offering comes handy for both the landlord and tenant. While the tenant wants a place to put his or her business, the landlord also is in need of tenants.

Bank Of Uganda Accused Of Not Operationalizing Islamic Banking

Bank of Uganda's failure to establish the Central Shari’a Advisory Council, five years after the law was passed, is a deliberate move to frustrate the final lap of establishing Islamic Banking, Daily Monitor reports, quoting a statement issued by Islamic leaders.

“We wish to expose (sic) our prolonged suffering caused by Bank of Uganda's delay to establish this council [Central Shari’a, Advisory Council]. This has taken almost five years since the law was passed.

Bank of Uganda should not have any excuse in finding the two Shari’a, scholars as specified by the law,” the statement reads in part, highlighting at least “10 technically suitable local Shari’a scholars, where it [Central Bank] can choose from,” Daily Monitor quoted the statement.

The statement headlined: How the delay in establishing the Central Shari’a Advisory Council at Bank of Uganda has Frustrated Islamic Banking, also noted that it was unfortunate that all the “amendments that were passed in the law in 2016 (such as agent banking and bancassurance, have been established except Islamic Banking.

The Islamic leadership in the finance sector pushing Islamic banking and listed on the statement include Dr Sulaiman Lujja, the Tropical Bank head of Islamic Banking, Dr Abdul Hafiz Walusimbi, the IUIU head of Shari’a, Dr. Anas Abdunoor Kaliisa, the director, Salaam Charity, Sheikh Muhammad Ali Waiswa, second deputy mufti, Uganda Muslim Supreme Council and Dr Sowed Juma Mayanja, a lecturer at Makerere University.

Others are Dr. Kisuule Muhammad, director House of Zakat, Dr Rashid Semuddu, consultant, Dr Ediriisa Kasozi, deputy dean and head of department Islamic Law, Faculty of Law, Yahya Kasujja, Senior associate account, Islamic Development Bank and Sheikh Ismail Njuki, director, Madina International Development Agency.

Par­lia­ment four years ago passed the Fi­nan­cial In­sti­tu­tions amend­ment Bill, the law that among oth­ers things in­tro­duced Is­lamic bank­ing that is con­sis­tent with Is­lamic Shar­i’ah (law). 

The par­lia­men­tary clear­ance was, how­ever, sub­ject to the es­tab­lish­ment of a Cen­tral Shar­i’ah Ad­vi­sory Board in the Cen­tral Bank to reg­u­late banks pro­vid­ing Is­lamic bank­ing prod­ucts. This has not been actualized by Bank of Uganda.

SOURCE: News Today Uganda

 

Poor Youth Movement Petition M7 To Stop BoU From Wasting Taxpayers’ Money

President Yoweri Museveni has been asked to intervene in the matter involving Bank of Uganda, Crane Bank and businessman Dr. Sudhir Ruparelia that has seen the central bank waste a lot of time and money in pursuing the businessman in court.

A petition that was written by Ssempala Zahid, the national spokesperson for Poor Youth Movement, wants President Museveni to intervene and save taxpayers from costs brought by what he described as incompetent Bank of Uganda staff in the case of Crane Bank under receivership against Meera Investments and Sudhir Ruparelia.

“We are writing to inform you that, on 23rd June 2020, in the middle of the COVID 19 Pandemic, in the worst period for all Ugandans locked down, the Court of Appeal (Court) ruled yet again against Crane Bank Limited in Liquidation (CBL) in a case where BOU filed to recover Shs397bn from Dr Sudhir Ruparelia claiming that he allegedly siphoned the same from CBL before it was closed and sold in 2017,” Ssempala says.

“It ought to be noted, that under HCCS 493 of 2017 the High Court had dismissed the case on the grounds among others that Crane Bank Limited (CBL) once put under receivership lost its ability to sue, that the statutory time for receivership was limited to 12 months.

That Crane Bank Limited was a foreign company and lacked locus to own land Free Hold or own the 48 properties that had been seized by the BOU and sold to DFCU bank and that there was no cause of action as there was nothing to sue for, as all assets had been sold to DFCU bank,”

“Upon dismissal of the case, CBL / BOU was condemned to pay costs of the suit which was at that time at 25% per annum of a sum believed to be in billions of shillings plus other legal costs,”

The petitioner explains that the greed in the BoU Legal Department misled the Board to authorise an Appeal which was filed to the Court of Appeal Civil Appeal No. 252 of 2019 “this appeal was dismissed and the costs awarded to Meera investments limited and Sudhir Ruparelia yet again. The total taxed bill is yet to be filed which according to Legal experts could be anything on the region of 150bn which will be visited on the taxpayers’ money, as BoU does not have its own money to pay those costs and will have to seek for recapitalization or a refund from Government after payment”.

“Your Excellency, it should be worth noting that, the government is currently facing deep budget cuts and might not realize the 22trillion budget for 2020/2021. This condition will be further aggravated by payment of the legal costs by taxpayers in the suit which by law must be paid and considering views/ analysis of legal experts will be lost again in the Supreme Court in the event of an Appeal,” he stressed.

“BoU has a litany of lost cases where billions have been paid to claimants and winners of cases. The performance of the Bank’s Legal Department could be as a result of over-reliance on so-called external legal experts who are bent on appealing any losses given that they will be paid. And as it is common knowledge, the higher they Appeal, the higher their fees.

A law firm billed BoU over 13bn for services in the CBL closure which services where later on regarded as ineffective and contrary to the law by COSASE as parliament faulted BOU in deliberately disregarding the law or legal procedures in the process of closure of CBL, which leaves one wondering why the said “legal experts” were paid a hefty 13bn for wrong advice,”

“Your Excellency, this cannot be sustained anymore by the taxpayer given the dwindling tax base consumed by the negative impact of COVID 19 on the Government’s bottom line,”

He also stressed that the case of closure of CBL and indeed other Banks have been a subject of investigation and probe by parliament and others which established that BOU had not done its job well and COSASE made a raft of proposals for reform of supervision and Legal Department which have all been washed aside by the Bank and the Ministry of Finance which should have given Parliament and Cabinet an update of the progress in implementing the COSASE recommendations.

“Instead the BoU has continued to accumulate costs in lost cases especially on CBL which ceased to be a Legal matter when it was evident the closure had all the hallmarks of a failed and botched regulatory action,”

“Your Excellency, you have recently demonstrated your ability to axe incompetent public officials who have either failed to execute their mandate or caused loss to Ugandan taxpayers. We beg you to take action over the incompetence in our mother bank,”

Ssempala fears that there are many questions which have left the Wanainchi puzzled like; When will someone be asked to account for actions of this Institution? When we have Governor BoU the same time chairman of the board, who punishes the Governor when he fails to execute his mandate as we all watched him pointing fingers at junior officers during the COSASE probe and junior officers pointing back?, When will Ugandans survive this wanton squander of public authority? When will BoU Board and its top Executives be called to order?

“As soon as the ruling was made dismissing the Appeal, the same Legal Head Mrs Margaret Kasule was summoned by the Board which was sitting on that same day to advise on the way forward and as expected, the Legal Head advised that the only way out of this was through an appeal to the Supreme Court. Indeed several interactions and engagements are underway to file an appeal to the Supreme Court where one of the Justices who dismissed the case is likely to be seated again this time as Chief Justice as he is Acting Chief Justice at the moment”.

“Even a blind person will see that this case which has so far cost Ugandans in excess of 20bn in costs to Lawyers is a waste of public resources. The COVID 19 pandemic has slowed down productivity, Ugandans have borne the brunt of biting poverty, revenue collection estimates have been reduced drastically fiscal discipline and austerity measures have been proposed and now Ugandans have to watch and see as the usual mistakes are being repeated by the same advisors misleading the BoU Board into entering a bottomless pit that is likely to cost BoU an arm and a leg”.

“Many questions have been raised by the public in regard to the viability of the said Appeal by BOU to the Supreme Court like; what is the ultimate goal of this appeal, is it to appease the Governor or the President? Is it to recover real money? If so how much has the BoU recovered in the last 20 years of Bank resolutions?”.

“The Bank has instead sunk billions into the coffers of expensive unthankful legal sharks who have no heart for Ugandans but their wallets”.

“Your Excellency, as your Bazukulu and taxpayers who feel the pinch of our monies being wasted by BOU in endless litigation, the purpose of this petition is to say enough is enough. Let this wanton disregard to the financial bleeding of BoU STOP HERE. Let Sudhir Ruparelia be paid his money and let Ugandans start with a new slate”.

Huawei Announces First Half Of 2020 Business Results

Huawei has today announced its business results for the first half of 2020. The company generated CNY454 billion in revenue during this period, a 13.1% increase year-on-year, with a net profit margin of 9.2%.

Huawei's carrier, enterprise, and consumer businesses achieved CNY159.6 billion, CNY36.3 billion, and CNY255.8 billion in revenue, respectively.

As countries around the globe are grappling with the COVID-19 pandemic, information and communications technologies (ICT) have become not only a crucial tool for combatting the virus, but also an engine for economic recovery.

Huawei reiterated its commitment to working with carriers and industry partners to maintain stable network operations, accelerate digital transformation, and support efforts to contain local outbreaks and reopen local economies.

The complex external environment makes open collaboration and trust in global value chains more important than ever. Huawei has promised to continue fulfilling its obligations to customers and suppliers and to survive, forge ahead, and contribute to the global digital economy and technological development, no matter what future challenges the company faces.

East Africa’s Food Basket: Balancing Import Substitution & Regionalism

By Christopher Burke, WMC Africa

Government support for the promotion of agriculture in the 2020/21 budget with the scrapping of VAT on agricultural equipment and processed milk are welcome steps in the right direction; however, care is required in the utilization of import duties to pursue import substitution associated with agricultural products.  Uganda is a relatively small economy and must maintain access to regional markets.

Tagged the “Pearl of Africa” over a century ago, Uganda remains “gifted by nature.” Geographically located at the centre of one of the fastest growing and most dynamic economic regions in the world, Uganda has become a prominent procurement and distribution hub for the greater East African region. Strategically located at the head of the Nile River and extremely rich in natural resources with fertile soils and consistent rainfall across much of the country; Uganda clearly has the potential to be a food basket for the region. 

Even before the COVID 19 pandemic, East Africa was leading economic growth on the African continent consistently registering over 5 percent while the global economic slowdown over the past decade saw growth in Europe and North America hovering between 1 and 2 percent.  While the Bank of Uganda’s projected economic growth for Uganda in 2020 is now between 2.5 t0 3.5 percent, the negative balance of payments is expected to increase significantly this year with reduced demand for Uganda’s exports while foreign debt continues to escalate.

The population of the East Africa including Uganda, Kenya, Tanzania, Rwanda, Burundi and South Sudan is approximately 185 million people.  If we add in the 17.6 million people living in the four provinces of eastern Democratic Republic of Congo (DRC) comprising Haut-Uele, Orientale, Maniema, North Kivu and South Kivu we have almost 20 percent of the total population of the African continent—a very substantial market.

Though still low, purchasing power parity is rising and Uganda’s population of 42 million people is among the fastest growing and youngest in the world.  Nonetheless, the Ugandan market is relatively small and underdeveloped. Exports are dominated by raw produce, particularly agricultural products. This is a binding constraint that needs to be addressed before Uganda can fully import substitute and gain wider access to regional and international markets.

Still heavily reliant on subsistence agriculture, government must explore ways to promote value addition to develop the agricultural sector.  Every segment of the value chain requires strengthening, starting with the farmers, to ensure good quality and competitively priced produce.  The reduction in taxes on agricultural equipment goes a long way towards this, but it needs to be complemented with a coherent effort focused on value chain development. Until the internal market can distribute rewards fairly across the value chain, it will be difficult to develop a production system that is responsive to the sophisticated standards of regional and international markets.

Import substitution is the first step in the development of an export sector and critical to improving the balance of payments; however, a viable import substitution strategy requires that production first meets the needs of the domestic market.  Substantial investment is required to achieve this and to exploit the economies of scale presented by the regional market, government must look at ways to improve trade relations with neighbouring countries within the East Africa Community (EAC) and the Common Markets for East and Central Africa (COMESA).  

The development and full implementation of robust regional tariff regimes would provide serious economic benefit.  The development of larger markets through the realization of trading communities would attract the necessary investment for the production of goods and services for regional markets and position Uganda as a trade hub in East Africa and better position the region to take on an increasingly fractious world.  

 

 

Former ICT Minister Mulira Commends Victoria University Online Learning Initiatives

Senior Presidential Advisor on ICT Hon Ham Mulira has commended Victoria University for putting in place early measures to help students continue with their classes uninterrupted during the COVID 19 pandemic.

Hon Mulira while addressing the media at Victoria University in Kampala said that such early initiatives like giving each new student a laptop will provide them with ability to study away from the university during this lockdown period caused by coronavirus.

“Corona Virus started as a health problem in China several thousands of miles away. We did not know the kind of impact it was going to have on several sectors. We have seen what it has done to so many economies around the world,”

“One of the areas which has been greatly affected is education. Students had to be asked to go home because they could not stay in an environment with great risks for COVID 19 infection,” Mulira said.

He adds that government through the National Council for Higher Education has come up with online/ distance learning guidelines for Higher learning education institutions on how to use technology as a medium of communication to impart knowledge to students while they are away from school.

” In Uganda we have 15m students who were asked to go home because they could not continue with their formal education in traditional means yet education has to continue. The solution was to adopt technology in the infusion of imparting knowledge through online/distance learning.”

The former ICT minister however explained that COVID 19 has come with some positive effects on education saying that online learning had been tried long ago and failed but said the COVID rebooted the interest in need of online education.

” At Victoria University students who register get laptops issued to him or her and they started this before COVID. This has been ongoing and provides their students with the ability to study away from the university” Mulira noted.

He further asked the university to address the issue of connectivity using internet to enable students get the best.

Dr Krishna Sharma the Vice chancellor Victoria University also noted that it is the responsibility of universities and education institutions to foresee and come up with innovative ways to ensure they are not interrupted by any pandemic.

“It was the responsibility of universities to foresee and prepare self accordingly. For Victoria University our team had already done guidelines two months ago before these of NCHE came out. We did a survey to find out the challenges of students, our staff and ourselves came out with our own guidelines,” he said.

Dr. Sharma says the university is ready to commence online teaching adding that all the issues raised in the guidelines by NCHE have already been in place at Victoria University.

“As VU most of the issues NCHE is asking we have been practicing them. We have been using them with our students and training our staff with effective utilizing e-learning resources”.

“We are ready to roll. We started getting students to apply, register and pay online. We can also teach online and evaluate them online. This is the responsibility of the universities to take up and come up with innovative ways that best fits our staff, our localities and students”.

He said the online classes will be conducted at free cost while those who will not be able will be provided with printed contents for self-study.

SOURCE: command1Post.com

Senior Presidential Advisor on ICT Hon Ham Mulira has commended Victoria University for putting in place early measures to help students continue with their classes uninterrupted during the COVID 19 pandemic.

Hon Mulira while addressing the media at Victoria University in Kampala said that such early initiatives like giving each new student a laptop will provide them with ability to study away from the university during this lockdown period caused by corona virus.

“Corona Virus started as a health problem in China several thousands of miles away. We did not know the kind of impact it was going to have on several sectors. We have seen what it has done to so many economies around the world,”

“One of the areas which has been greatly affected is education. Students had to be asked to go home because they could not stay in an environment with great risks for COVID 19 infection,” Mulira said.

He adds that government through the National Council for Higher Education has come up with online/ distance learning guidelines for Higher learning education institutions on how to use technology as a medium of communication to impart knowledge to students while they are away from school.

” In Uganda we have 15m students who were asked to go home because they could not continue with their formal education in traditional means yet education has to continue. The solution was to adopt technology in the infusion of imparting knowledge through online/distance learning.”

The former ICT minister however explained that COVID 19 has come with some positive effects on education saying that online learning had been tried long ago and failed but said the COVID rebooted the interest in need of online education.

” At Victoria University students who register get laptops issued to him or her and they started this before COVID. This has been ongoing and provides their students with the ability to study away from the university” Mulira noted.

He further asked the university to address the issue of connectivity using internet to enable students get the best.

Dr Krishna Sharma the Vice chancellor Victoria University also noted that it is the responsibility of universities and education institutions to foresee and come up with innovative ways to ensure they are not interrupted by any pandemic.

“It was the responsibility of universities to foresee and prepare self accordingly. For Victoria University our team had already done guidelines two months ago before these of NCHE came out. We did a survey to find out the challenges of students, our staff and ourselves came out with our own guidelines,” he said.

Dr. Sharma says the university is ready to commence online teaching adding that all the issues raised in the guidelines by NCHE have already been in place at Victoria University.

“As VU most of the issues NCHE is asking we have been practicing them. We have been using them with our students and training our staff with effective utilizing e-learning resources”.

“We are ready to roll. We started getting students to apply, register and pay online. We can also teach online and evaluate them online. This is the responsibility of the universities to take up and come up with innovative ways that best fits our staff, our localities and students”.

He said the online classes will be conducted at free cost while those who will not be able will be provided with printed contents for self-study.

SOURCE: command1Post.com

Sudhir Lawyers Say BoU Inaccurate On Why Shs379bn Case Was Dismissed

Kampala Associated Advocates (KAA), the law firm representing city businessman Sudhir Ruparelia have responded to a statement issued by the Bank of Uganda’s Governor, Prof. Emmanuel Tumusiime-Mutebile criticizing Court of Appeal’s decision dismissing the case in which BoU (Crane Bank in receivership) sued the businessman.

In a well detailed statement, KAA lawyers say that the statement circulated by the Bank of Uganda to the media contained many inaccuracies and falsehoods.

We reproduce the full statement below;

We act for and on behalf of Dr Sudhir Ruparelia and Meera Investments Limited. Our attention has been drawn to a press release issued by Bank of Uganda on 30th June 2020. The press release was issued on behalf of Crane Bank Limited by the Governor of the Bank of Uganda and published in the print and social media in Uganda. It contained many inaccurate and false statements. Our instructions are to correct the public record.

Why the Case was dismissed by the Court:

1. High Court Civil Suit 493 of 2017 (the suit forming the subject of the appeal) was filed by the Bank of Uganda in the names of Crane Bank Limited in Receivership.

The High Court considered the case and determined that it was not legally tenable as there was no cause of action. The case was accordingly dismissed. There is no court in any part of the world that can proceed to hear a case where no cause of action is disclosed.

2. In both the High Court and the Court of Appeal, the Bank of Uganda addressed the Courts urging them to ignore the fact that it had no cause of action and proceed to hear the case anyway. Bank of Uganda was inviting the courts to ignore the law. Both Courts rejected this legally untenable plea that is now being made in the press.

3. The Court of Appeal in its written judgment stated at page 16 that:

“The Appellant {Bank of Uganda} raises an issue that the court ought to have overlooked the preliminary objections and instead looked at the matter on its merits… we respectfully disagree with the Appellant that if a pleading does not disclose a cause of action or locus standi, the courts should still inquire into the merits of the main case. That would be an action in futility. The courts are not meant to award moot judgments. If a person has no cause of action, then the merits of the case cannot be inquired into lest the court may end up condemning a party who should not have been condemned.”

4. The Bank of Uganda should not be allowed to disrespect the

Courts, when it is the one that went to the courts to seek redress in the first place. If they are unhappy with the decisions of the Court, the legal remedy is to file an appeal and not to criticize the court in the press.

The false claim that tax payers’ money was injected into Crane Bank and Bank of Uganda’s failure to account for it:

5. Bank of Uganda makes a false allegation that tax payers’ money was used to settle Crane Bank Depositors. This statement is used several times in the press statement but it is not part of the case Bank of Uganda filed. It is an allegation designed to sway public opinion, and has nothing to do with the case.

6. Independent inquiries conducted by both the Auditor General and the

Parliament of Uganda (COSASE Committee) have all reported that there was no evidence to support Bank of Uganda’s claims that tax payers’ money was allegedly spent on paying depositors. Money went missing from Bank of

Uganda and remains unaccounted for.

7. Ever since Bank of Uganda took over Crane Bank, it has not published any audited accounts of the Crane Bank. There are no audited accounts for the period of Statutory Management or Receivership. This means that there are no documents of Crane Bank Limited that prove the Bank of Uganda’s allegation that it injected tax payers’ money into Crane Bank.

8. The Head of the legal department at Bank of Uganda in sworn evidence before the High Court stated on oath that Bank of Uganda had not made any loss of money on account of Crane Bank and that it had no legal interest in any case against shareholders. This statement on oath means that Bank of Uganda did not inject into Crane Bank any tax payers’ money.

In direct contradiction of this oath and pleadings filed in court, Bank of Uganda now claims in the press that it is seeking tax payers’ money that it had used to pay depositors.

9. Bank of Uganda’s auditors stated that the money Crane Bank Limited needed to survive was only 130bn shillings. Bank of Uganda alleges (without evidence or any rationale) that it injected 497 billion into Crane Bank and has failed to account for it as shown by both the COSASE and Auditor General’s Reports.

10. There is no forensic Report of any kind that states that US $92 million was extracted from Crane Bank by Dr. Ruparelia as Bank of Uganda alleges in the press statement.

11. Crane bank was subjected to numerous annual, quarterly and special audits and all its financial statements were approved every year by the Bank of Uganda without reservation of any kind. Not one of them alleged any extraction by Dr. Ruparelia. This allegation is absurd.

The unreliability of Bank of Uganda’s so-called

forensic investigation:

12. This so-called forensic investigation undertaken by Bank of Uganda is unreliable because the investigators did not interview Dr. Ruparelia, or the Managing Director or the Executive Director as required under forensic audit guidelines. A forensic audit cannot make conclusions without hearing both sides of an issue. This irredeemably taints the so-called forensic investigation and makes the findings unreliable.

A one-sided forensic investigation is not an objective investigation and cannot stand up to legal scrutiny.

13. The official reason given by Bank of Uganda to the public for the takeover of management of Crane Bank Limited was under capitalization due to provisioning for nonperforming loans, not the so-called extraction that is alleged in the press statement, which is an attempt to soil Dr. Ruparelia’s image.

The false allegation that Dr. Ruparelia owned 100% of Crane Bank:

14. The allegation that Dr. Ruparelia owned 100% of Crane Bank is false. All the shareholders of Crane Bank were vetted and approved by the Bank of Uganda in accordance with the Financial Institutions Act.

The allegations made about a settlement agreement:

15. The case Bank of Uganda filed in the High Court and the Appeal in the

Court of Appeal did not include any claims of any kind or any allegations of any kind in relation to a settlement agreement with Dr. Ruparelia. Because Dr. Ruparelia has filed a counter claim, whose subject matter is based on that settlement agreement, the Sub Judice rule precludes him from elaborating more on that matter here.

Constitutional Bar to the claims made against Meera Investments Limited:

16. Meera Investments Limited is a separate legal entity that is not regulated by Bank of Uganda and holds a reversionary interest in real property that the Bank of Uganda would like to take over without any legal basis and in violation of the Constitution of Uganda. This issue was considered by both the High Court and the Court of Appeal and was rejected both times on constitutional grounds. The Bank of Uganda wants the Courts to disregard the Constitution of Uganda to give them what they want.

Bank of Uganda’s complaint in the press that the Courts are limiting its powers to supervise closed banks:

17. It is not the Judgments of the High Court and Court of Appeal that restrict the powers of Bank of Uganda in resolution of closed banks as suggested by the Bank of Uganda in the press statement.

Both judgments stated clearly that the limitation on Bank of Uganda’s powers are found in the Financial Institutions Act.

If the Bank of Uganda is unhappy with those limitations, the appropriate remedy should be to seek to reform the law and amend the statute. It should not be to criticize the Courts in the press as it has done.

Dr Sudhir Ruparelia reserves the right to challenge these malicious and ill-founded allegations.

Kampala Assosiated Advocates

KAA HOUSE, Plot 41 Nakasero Road

P.O.Box 9566, Kampala Uganda,

Tel: +256 (0) 414 344 123

+256 (0) 312 244 100

Web: www.kaa.co.ug

MP Odonga Otto Wants Bank Of Uganda To Apologize To Former Crane Bank Owners

Aruu County MP Hon Odonga Otto has asked Bank of Uganda to swallow its pride and apologize to the former management of Crane Bank Ltd because it has been severely proven wrong for closing their financial institution.

Hon Otto remarked that the report of the committee of parliament clearly states that some criminals in the Central bank connived and sold former Crane Bank owned by Dr. Sudhir Ruparelia for personal gains.

”Bank of Uganda should swallow their pride and apologize to the management of Crane Bank because the report of the committee of parliament is clear, some criminals in BoU sold Crane Bank for personal gains now the truth is coming out and Bank of Uganda is losing”. Hon Odonga said.

The legislator who is also a lawyer says in order to save the tax payer’s money being wasted by Bank of Uganda, the report of the Committee of Parliament should be followed and implemented.

He also noted that it's not perfect time for bank of Uganda to appeal Court of Appeal judgement saying that the writing on the wall is very clear, Bank of Uganda is wrong and will continue to lose even in the supreme court.

” To save taxpayers of money the report should be followed because this is not the perfect time for Bank of Uganda to appeal and the writing on the wall is clear” He adds.

“First of all if you are selling a bank its the liquidity, not the buildings, do the buildings belong to Crane Bank Ltd?"

“I can have a building belonging to Odonga Otto Company Ltd and I can be running my business in those buildings. If the business goes bad, its not the buildings”. Explained Aruu legislator.

He called on the Central bank officials to save the country from their expensive lawyers and concede the matter of Crane bank LTD.

” I think Bank of Uganda should just save us from those big lawyers to save taxpayers and swallow their pride and just say we concede on this matter of Crane Bank Ltd”.

MP Katuntu To BoU: You Will Lose To Sudhir In Supreme Court

Member of Parliament (MP) for Bugweri County and former Chairman of Parliament’s Committee on Commissions State Authorities and State Enterprises (COSASE) Abdu Katuntu believes that Bank of Uganda (BoU) will yet again lose to Dr. Sudhir Ruperelia and his Meera Investments Limited in the Supreme Court where it intends to take the matter.

Bank of Uganda, through a suit by Crane Bank Limited (CBL), wants the Dr Ruparelia, the proprietor of the now-defunct Crane Bank, and Meera Investments to pay about Shs397 billion which they allegedly swindled from the nonoperational commercial bank.

The Emmanuel Tumusime Mutebile led BoU, also the central bank and regulator of the financial institutions in Uganda has already lost the same case in High Court (commercial court) and Court of Appeal. They are preparing to take the case to the Supreme Court for redress after not getting satisfied with the rulings of the lower courts.

And now Katuntu, who led MPs that investigated the mismanagement and sell of several commercial banks by Bank of Uganda is in agreement with the ruling of the commercial court which said that CBL in receivership cannot sue because the law bars it.

According to a report by The Second Opinion, Katuntu said that BoU closed CBL and other six banks with carelessness and impunity even though the lending institutions had weaknesses in running their businesses.

COSASE probe under Katuntu established that BoU did not follow the established guidelines and procedures in closing the banks and that corruption took place in the process.

Petition Demands That Anti- Corruption Court Indicts Bank Of Uganda Ex-officials

The Anti- Corruption division of High Court in Kampala has been petitioned to indict and hold culpable 3 former executives of the Bank of Uganda, over allegations of involving themselves in corruption and the fraudulent sale of former Crane Bank to dfcu Bank.

This is in a petition filed by a concerned Ugandan Sam Brian Kakuru seeking the High Court to institute an investigation into the operations of Louis Kasekende, Justine Bagyenda and Benedict Ssekabira.

Bagyenda is former executive director of Bank of Uganda in charge of supervision also at the heart of dubiously selling banks, Louis Austin Kasekende was the former deputy governor Bank of Uganda while Sekabira was the director Capital markets in the Central bank.

Kakuru thus wants the court to question them and their intent to establish their role into the illegal sale of former Crane Bank valued at Shs1.3trillions and handed over to Dfcu at only 200bn, not in cash. Six other banks were also victims of the above individuals’ heinous dealings.

According to the petition, Kakuru wants the Anti-Corruption Court to base its investigations on the 2019 findings of the Committee on the Commission, State Authorities and Statutory Enterprises (COSASE) and the Auditor General’s Report, which implicated Kasekende, Bagyenda, Ssekabira and other officials at the Central bank in having had a hand in the dubious sale of Crane Bank and several other commercial banks.

He further wants President Yoweri Kaguta Museveni to use his prerogative power conferred upon him by the Constitution to invoke investigation and reprimand for the named former BoU officials, because of their involvement in a litany of corruption activities, with intent to amass obscene wealth.

“The former Bank of Uganda (BoU) officials conspired with the mysterious Nile River Acquisition Company as the Company bought off secured debts of International Credit Bank (ICB), Greenland Bank and Cooperative Bank at Shs8.89 billion representing a 26 per cent discount of the total secured loans.

“The loan portfolio sold included secured loans of Shs34.5 billion which had a valid, legal or equitable mortgage on the real property and were supported with legal documentation. I noted that the contract price of Shs8.878 billion represented 26% of the total secured loan and 7 percent of the total loan portfolio implying that the loans were sold at a discount.” The Auditor Genera; John Muwanga say in his special audit report of BoU on defunct banks (Annex 3).”

Kakuru adds in his petition that “The Financial Institutions Act (FIA) provides ways in which the Bank of Uganda may take over and resolve the financial institution that is in distress. BoU fraudulently closed Crane Bank ignoring sections 89 (1), (2) (e) and (9) of the FIA Act (Annex 1).”

“Corruption implicated former BoU official fraudulently closed Central Bank without conduction of an evaluation of the assets and liabilities of Crane Bank before they were transferred to Dfcu Bank.

“On April 10, 2018, I requested for P&A agreement, including the details of the assets and liabilities transferred after taking into account the requisite valuation. I noted that BoU did not carry out a valuation of the assets and liabilities of CBL. In the absence of the valuation, I could not establish how the terms for the transfer of assets and liabilities in the P& A were determined,” Mr Muwanga’s report reads in part (Annex 2).”

He also adds that “BoU was deliberately involved in obstruction of justice to Chairman Ruparelia Group through misappropriation of taxpayers’ money to hire MAAKS Advocates that created a scenario of allegedly taking Shs397 billion out of the financial institution in alleged fraudulent transactions and land title transfers. MAKKS Advocates had been previously hired as lawyers for Ruparelia Group, a case that was crashed in court as a conflict of interest (Annex3).”

“The ACD of the High Court must investigate and prosecute former BoU corruption implicated officials the circumstances that led to the closure of Cooperative Bank after unearthed questions regarding the particular identity of the bank that was closed, after two groups of shareholders came up claiming ownership of the bank, with each sharing the same names. (Annex 1).

Greenland Bank equity investment in African Export-import Bank (Egypt) worth USD45,000 had accumulated dividends of USD22,410 as at 30th November 2015, however, the liquidator (BOU) had not sold off the shares and therefore the funds were embezzled by the corruption implicated former BoU officials (Annex 1).

The Petitioner wants Bank of Uganda Governor Emmanuel Tumusiime Mutebile who was requested by COSASE to prepare a response to the demand for Shs20 billion from the Central Bank by businessman Chris Tushabe Karobwa.

Mr Karobwa petitioned Parliament faulting former BoU officials for bringing his business empire down after officials mismanaged properties worth Shs1.4Billions which he had mortgaged in Cooperative Bank before it was closed and liquidated in 1999.

He also claims that Shs3Billion that was on his account in Cooperative Bank at the time of closure was stolen on top of BoU seizing and grounding his two Mercedes Benz lorries.”

SOURCE: Command1Post

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