October 25, 2020
October 25, 2020

Why Dfcu Bank Called a Crisis meeting Over the Departure Of Minority Shareholders


By Lubowa Babu Hussein
Dfcu Bank is yet embroiled in another r crisis after the Bank’s minority shareholders asked the top management to source for an investor to buy their stake since they are no longer interested in the business.
According to the inside source from the DfcuBank who spoke to this www.pressug.com on condition of anonymous  since he isn’t authorized to speak to the media said that over the weekend DFCU Managing Director Mathias Katamba held a crisis meeting with his predecessor Juma Kisaame and lawyer David Mpanga who designed a plan to take over Crane Bank.
“Among the issues on discussed 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 source after the meeting
Katamba told Mpanga and Kisaame that unlike them he has a future ambition of working in Bank of Uganda either as Deputy Governor or Governor.
“Therefore Kisaame and Mpanga should better handle their mess with BoU since they were at the center of Crane Bank acquisition” the source adds
However, Katamba said he will not involve his face in a matter that he never participated in which he believes could destroyed his image at some point when he quits DfcuBank.
Katamba’s pressure, Kisaame and Mpanga contacted Bank of Uganda director of legal Margret Kasuule who is perceived as their ally.
“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” Source narrates
Meanwhile, madam Kasuule promised to begin documenting legal files that will legitimize/cover up Crane Bank sale and also end the crisis DfcuBank has been once she resumes office work next week since she is on leave.
In that very meeting, the management discussed a possible downsizing of the business by closing a number of branches across the country as a means of cutting costs.
Katamba reviewed to the meeting that since the minority shareholders are quitting the bank, its imperative for DfcuBank to begin a strategy to restore trust both on their shareholders and clients by plugging all the loopholes first forward by tackling the issue of Crane Bank.
It’s on record that last year, DfcuBank returned buildings which formerly belonged to Crane Bank that the bank had occupied falsely.
This News website has learned that in the process of downsizing DfcuBank has planned to lay off 20% of the workers who will be labelled unemployed.
This development further threatens the future of DfcuBank after one of their biggest shareholders Commonwealth Development Corporation (CDC) Group last year pulled out their investment from the bank and it’s well know ever since DfcuBank took over Crane back from the proprietor Dr. Sudhir Ruperaria it’s movements never be stable.
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