By Andrew Irumba
The future of Dfcu Bank in Uganda’s banking sector is very uncertain after the majority shareholders, Commonwealth Development Corporation (CDC) Group, pulled out last years and asked the bank to look for another investor to buy their stake, since they are no longer interested in the venture.
Whereas CDC couldn’t give a valid reason for quitting the bank, source say their departure stems on the decision to acquire DFCU which the investors vehemently protested
Ever since their biggest shareholder pulled his capital business at Dfcu Bank has never been the same again.
Actually, a Spy at the Bank revealed to us that over the weekend Dfcu Managing Director Mathias Katamba held a crisis meeting with his predecessor Juma Kisaame and lawyer David Mpanga, who hatched the plan to take over Crane Bank, a move that has since brought Dfcu a lot of problems.
“Some of the matters discussed during the crisis meeting are; the pull out of minority shareholders, downsizing of the business, Crane bank and Katamba’s ambition for Bank of Uganda top job,” said the Spy.
Katamba, as the MD of the business told Mpanga and Kisaame that unlike them he has a future ambition of working in Bank of Uganda either as Deputy Governor or Governor.
“He thus advised Kisaame and Mpanga to handle their mess with BoU since they were at the center of Crane Bank acquisition, which now threatens Dfcu bank with liquidation.
The Spy intimates that Katamba expressly made it clear to his colleague that he will not involve himself in a matter that he never participated, which he believes could tarnish his image at some point when he quits Dfcu bank.
It is said that after succumbing to Katamba’s pressure, Kisaame and Mpanga contacted Bank of Uganda director of legal Margret Kasule, who is perceived as their ally, for a quick way out.
“The purpose was to inform her to find a way of handling Crane Bank mess once and for all since the illegal purchase has been haunting Dfcu management as it continues to lose business, reputation and clients,” said our Spy.
However, Kasule, who is currently on leave, just promised to start documenting the legal files that will sort the Crane Bank sale mess and also end the crisis Dfcu is facing when she returns to office next week.
Apart from the Crane Bank mess, Dfcu management also discussed a possible downsizing of the Bank by closing a number of branches across the country as a means of cutting costs.
Katamba reportedly told his colleagues that because the majority shareholders are quitting the bank, its imperative for Dfcu to begin a strategy to restore trust both in their shareholders and clients by plugging all the loopholes first forward and tackling the issue of Crane Bank.
It should be recalled that last year, Dfcu announced closure of its branches housed in buildings that Crane bank had leased from Meera Investments Limited, after court ruled that Dfcu bank was illegally occupying them.
Our Spy intimated that in the process of downsizing Dfcu management plan to lay off 20% of the workers so as to reduce the payroll, although the move will further threaten the future of Dfcu.