TRANSPARENCY: CoST Uganda Commissions 2nd Infrastructure Transparency Index
Shift Media News 
By Our Reporter
When news broke out a few weeks ago of how DFCU Bank was planning to vacate 22 of the occupied former Crane Bank Premises, DFCU came out loud describing the news as fake.
Anyway, “lies never last”, what we can reveal is that this is set to happen anyway, it is no longer a matter of if, but when.
The latest news, rather disturbing, is that Bank of Uganda is set to pay DFCU cash, to the tune of Sh 47 billion for the tittles of the premises, that hitherto belonged to Meera Investments.
But, what puzzles, is that though DFCU received the ‘confiscated’ titles from Central Bank, and were due to pay shs47 billion, they in fact paid only shs10 billion. That aside, Bank of Uganda has stated that it will pay DFCU shs47 billion that they never paid in the first place. The story of where the shs37 billion will go, will be for another day.
What happened?
When Crane Bank had financial challenges, it requested for support from the Central Bank, just as required by law. City Tycoon and Property Mogul, Sudhir Ruparelia handed over the titles of the various Crane Bank branches countrywide to BOU as security.
Despite this, BOU went ahead and offset Crane Bank to DFCU at a shs 200 billion ‘controversial’ transaction. In its latest annual report, BOU has made it clear that DFCU will return the titles of the 48 branches and get a refund from the central bank.
The BOU states in its 2018/19 Annual Report that DFCU is set to vacate the 48 properties that serv
ed as Crane Bank branches countrywide.
In the Annual report , Bank of Uganda observed as thus: “Following the Court’s ruling DFCU Bank Limited in a letter dated September 12, 2019 communicated to BOU its decision to exercise its option to rescind its interest in purchasing the 48 properties pursuant to clause 8.7 of the Agreement.,”
The report notes that as part of the rescinding of this purchase, DFCU will return to Bank of Uganda Certificates of title for Meera Investments Limited ‘and requires Bank of Uganda to pay DFCU the new book value of properties recorded in the assets and inventory compilation as October 20, 2016.’
On August 26, 2019, Court ruled on Miscellaneous Application No.320 of 2019 in favor of Sudhir Ruparelia and Meera Investments Limited dismissing Suit No.493 of 2017 where Crane Bank (receivership) had sued Sudhir Ruparelia and Meera Investments Limited to recover Shs397 billion allegedly swindled.
Court ruled that costs of the application be paid by the Bank of Uganda on the basis that Crane Bank (in receivership) is non-existent and does not have locus standi to put forth any claim against Sudhir and Meera Investments Limited.
DfCU Bank has been operating its business in buildings/properties belonging to Meera Investments Limited since it acquired CBL over two years ago.
In August this year it emerged that the bank was misled by city Law firm Sebalu & Lule Advocates to illegally transfer title properties into its name yet the properties belong to Meera Investments Ltd even though it had leased them to Crane Bank Limited.
