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Dfcu Bank Officials Return To COSASE Over Crane Bank Takeover

dfcu Bank officials Thursday afternoon   returned to Parliament this afternoon for further engagement with the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE).

Yesterday the Board Chairman, Jimmy Mugerwa led a combined Board and Management team to parliament following an invitation from the Clerk of the Committee to have dfcu testify before committee of the Auditor General’s Special Audit Report on Defunct Banks in Uganda.

In a prepared statement, the chairman informed the members of the Committee that dfcu Bank participated in the resolution of two banks in Uganda, namely, Global Trust Bank Limited (2014) and Crane Bank Limited (2017). In both cases, dfcu’s participation was at the invitation of Bank of Uganda (“BoU”).

Making specific reference to the purchase of CBL,. Mugerwa said the bank recognised the systemic risk the closure of CBL posed to the economy of the country and so it resolved to progress with the acquisition of assets and assumptions of liabilities of CBL quickly and efficiently with minimal impact on depositors ‘…From the date when the former CBL business re-opened under dfcu, depositors were able to transact normally accessing their deposits in full…’ Mugerwa said.

Following the signing of a non-disclosure agreement (NDA) with BOU, the bank carried out an extensive due diligence under a number of key work streams.

On the basis of the due diligence findings and in light of dfcu’s strategic objectives and risk appetite, dfcu’s Board of Directors gave management the go-ahead to submit a bid on the terms and conditions set out in the bid document that was dated 20 December 2016, he said.

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