By Spy Uganda
Dfcu Bank has issued a statement informing it’s share holders and investors about the company’s poor performance in the year ended 31st December 2021 cautioning them that they should invest in the bank wisely or else risk huge losses.
The bank says made a decline in Net Profit exceeding 25% attributing it to ‘an increase in loan provisions made by the Company as a result of the impact of COVID-19 on its business customers and the impairment of some loans and advances that formed part of the financial asset acquired by the Company in the 2017.”
Remember that in the the above mentioned year is when Bank of Uganda mafias dubious sold Crane Bank to dfcu bank.
Crane Bank was the fourth largest bank by the time it was taken over by the central bank, with assets of Shs1, 794.34 billion (as at the end of 2015). Dfcu, on the other hand, was in the sixth position with assets of Shs1,651.63 billion at the end of 2015 (but which dropped to Shs1623.30 billion at the end of June 2016).
One would think that the acquisition of Crane Bank would push Dfcu up the list of Uganda’s largest banks, but guess what! Dfcu is crying foul as seen in its statement below;
The Board of Directors of dfcu Limited (the Company) wishes to inform its Shareholders and investors that the Company’s financial statements for the year ended 31 December 2021 will indicate a decline in Net Profit exceeding 25%.
The decline was occasioned by an increase in loan provisions made by the Company as a result of the impact of COVID-19 on its business customers and the impairment of some loans and advances that formed part of the financial asset acquired by the Company in 2017.
Shareholders and potential investors are advised to exercise caution while trading in the Company’s shares.”
Dubious Sale Of Crane Bank To Dfcu
On June 30, 2017, Crane Bank Limited (in Receivership) took Mr. Sudhir Ruparelia and his Meera Investments Ltd. to court for causing financial loss amounting to UGX 397 billion to Crane Bank in fraudulent transactions and land title transfers.
Crane Bank (in receivership) in its Civil Suit No. 493 of 2017 sought High Court to compel Mr. Ruparelia to pay back the US$80,000,000, US$9,270,172.00, US $ 3,560,000.00, US$990,000.00 and UGX 52,083,995.00 as compensation for breach of fiduciary duty.
While Hon. Justice Wangutusi dismissed the UGX397 billion case against Mr. Ruperalia on a technicality, alleging that Crane Bank (in Receivership) lost its powers to “sue” and to “be sued”, thus rendering its suit a nullity, Crane Bank (in Receivership) maintaining that receivership is a management situation, and hence no legal change as to the capacity of a company to sue and be sued.