Bank of Uganda runs to Supreme court over Crane bank case

ABOVE; The now defucnt Crane Bank   which has become a centre of controversial in the countrty’s financial institutions.

Bank of Uganda runs to Supreme court over Crane bank case

By Our Reporter

KAMPALA

As earlier expected by experts on financial matters, the embattled governor of Bank of Uganda Prof. Emmanuel Tumusiime Mutebile has decided to run to the supreme court appealing the recent ruling of the court of appeal which summarily dismissed his earlier appeal over the Crane Bank saga.

Prof.Mutebile with his legal team claims they are not satisfied with the recent ruling of the court of appeal which threw out with costs their case on grounds that city businessman Dr.Sudhir Ruparelia indeed clandestinely  siphoned out huge dime amounting to over 397bn from his bank before it collapsed.

MUTEBILE STILL FIGHTS FOR REAL JUSTICE; The embattled governor  Bank of Uganda Prof.Mutebile says he is not satisfied with appeal court ruling.

Bank of Uganda   insisted that they will appeal the case against  Sudhir  to the supreme court after the same was dismissed in the Court of Appeal.

However the  court of appeal  led by deputy chief justice Alfonse Owiny-Dollo unanimously dismissed the case with costs after finding no evidence in Central Bank’s allegations.

In a statement issued by  Mutebile on Tuesday, the Central Bank insists that receivership does not take away the corporate personality of a company which includes the right to trace and recover assets and the right to sue for those assets.

SEEKING JUSTICE AT ALL COSTS; Dr.Sudhir who owned  Crane bank which has become a big thorn in the  central bank’s foot.

 

Central Bank maintains Sudhir wrongfully and illegally extracted from Crane Bank amounts totaling to USD 92.8m and 8.2billion, while he (Sudhir) secretly and illegally owned 100 percent shares in the bank, which contravenes the Financial Institutions Act 2004.

Central Bank also accuses Sudhir of transferring freehold property  owned by Crane Bank into the names of Meera Investments Ltd, which he and his family are majority shareholders, without giving value to Crane Bank and rendering the bank a tenant on its own property with a liability to pay rent to his family business.

Mutebile now challenges the courts to express themselves on claims by Central Bank that Sudhir siphoned money from Crane Bank coffers, which is the intention of Central Bank’s main suit.

He claims that the implications of dismissing the Sudhir case may mean that a financial institution cannot pursue or seek recovery of assets of a bank in receivership by way of legal proceedings.

“This renders the principle of tracing and preserving assets of an insolvent bank during statutory management and receivership futile,” Mutebile said in the statement.

“The judgment also sets a precedent that limits the Central Bank’s capacity to resolve banks in a manner that ensures accountability for mismanagement of depositor funds and promotes corporate governance in the banking industry,” Mutebile adds.

Central Bank maintains that for such reasons, they are dissatisfied with the rulings of both High Court and Court of Appeal and ‘has taken decision to appeal to the Supreme Court in addition to the pursuit of other legal recovery options.

The country looks forward to seeing where the matter ends finally and who shall be the victor and loser. Watch this space.

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