By Andrew Irumba
As a parliamentary committee started quizzing Bank of Uganda (BoU) top officials on the seven closed banks, classified information indicates that former Executive Director in charge of Supervision Ms. Justine Bagyenda, while still at the central bank connived with dfcu executives led by Bank Chairman, Mr Jimmy Mugerwa to keep Crane Bank’s bad books off the record as a way of sweeping their dirt under the carpet since the deal was done.
The bad books are records indicating details and securities of people that take loans from any lending institution. However, despite dfcu being given CBL by BoU, it wasn’t mandatory for them to keep bad books because they belong to shareholders of CBL
According to sources, the said directive was done in connivance between Deputy Governor Louis Kasekende, outgoing dfcu MD Juma Kisaame dfcu bank limited board chairman Jimmy Mugerwa and the two conflicted lawyers (David Mpanga of Bowmans and Timothy Masembe of MMASK Advocates).
Jimmy Mugerwa aka Mr aloof due to his introvert character and deadly clandestine way of operation stage managed the whole process with Bank of Uganda officials to transfer Crane Bank properties without following procedures as required by the law.
Bagyenda who was in charge of Supervision of Commercial Bank at BoU is blamed to have presided over the fall of Crane Bank. She has since been sacked.
The dirty dealings between Bank of Uganda and dfcu over the sale of Crane Bank which belonged to businessman Sudhir Ruparelia were further exposed by Auditor General’s report whose findings indicated that the defunct Bank was never grossly insolvent as indicated by the Mutebile Administration.