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Crane Bank Saga: Gov’t Says It Won’t Takeover Speak Resort Hotel

Speke Resort, Kamuntu

The Government of Uganda has distanced itself from media reports that it will take over Speke Resort Hotel Munyonyo and other properties of tycoon Sudhir Ruparelia in order to recover losses that were caused to Crane Bank.  The remarks were made by Ephraim Kamuntu , the Minister of Tourism, Wildlife and Antiquities on Wednesday at State House, Entebbe during the launch of the Uganda Giants Club Conversation and Tourism Forum scheduled for October6, 2017.

“There is no such move (to takeover Speke Resort), the public should separate Crane Bank from Speke Resort, “ Kamuntu said, adding that  much as there is a crisis over Crane Bank, Government will protect the hotel to avoid disruption of hospitality industry.

On July13, 2017, the Bank of Uganda (BoU) said it had sanctioned the filing of a suit against Sudhir Ruparelia (the founder and a shareholder of Crane Bank) and Meera Investments Ltd to recoup funds that were “fraudulently extracted from, as well as losses that were caused to Crane Bank”.

BoU filed a civil suit at the Commercial Court against Ruparrelia and his investments firm Meera Investments Ltd On June 30.

On October 20, 2016, BoU announced that it had taken over the management of Crane Bank Ltd after the bank became “a significantly undercapitalized institution.”

Consequently, on February 27, 2017, BoU announced the takeover of the now defunct Crane Bank by dfcu-at an undisclosed fee.

 

 

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