Crane Bank saga: MPs seek answers on Shs219b

The Bank of Uganda (BoU) had yet to recover Shs219 billion linked to its intervention in defunct Crane Bank by June 2025, raising fresh questions about the outstanding claims nearly a decade after the commercial lender was taken over.

The amount remained recorded as receivables in the central bank’s financial statements as of June 30, 2025, despite dfcu Bank paying Shs200 billion following a 2017 transaction involving selected assets and liabilities of Crane Bank.

Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) is now seeking to establish the nature of the outstanding obligation, how much remains recoverable and which parties are responsible for settling it.

The committee chairperson, Mr Muwada Nkunyingi, said lawmakers would meet BoU officials, Finance Minister Henry Musasizi and Crane Bank’s former shareholders on November 9, 2026, to scrutinise the outstanding amount.

“We want to learn from Crane Bank what has occasioned the non-payment, or what is the state of affairs as of now,” Mr Nkunyingi said.

The inquiry seeks to clarify how the central bank accounted for the financial support extended to Crane Bank before its closure, how the subsequent transaction with dfcu Bank was applied and why the financial statements continued to show outstanding receivables.

Mr Julius Nakiyi, the Budadiri East MP tasked with examining BoU’s financial statements, told the committee that the central bank had provided financial support to Crane Bank to enable it to meet its obligations.

The expectation, he said, was that the money would be recovered through the subsequent transaction and, where applicable, from the former shareholders.

“The assumption was that Crane Bank’s shareholders were supposed to pay for its creditors, and they were unable to do that, so Crane Bank had to pay on their behalf,” Mr Nakiyi said.

However, the Shs200 billion received from dfcu Bank did not clear the receivables recorded in BoU’s accounts, prompting the committee to seek a breakdown of the outstanding amount and an explanation of the recovery arrangements.

The committee is expected to question the parties on whether further payments have been made, the legal basis of the claims and the respective obligations of the central bank, the former shareholders and other parties involved in the transaction.

The meeting had initially been scheduled for an earlier date but was postponed after BoU informed Parliament that Governor Michael Atingi-Ego was out of the country.

Under the revised programme, COSASE is also scheduled to meet BoU officials, representatives of Haba Group and the Finance minister to discuss a separate Shs140 billion matter and related issues.

The committee will subsequently turn to the Crane Bank receivables, with businessman Sudhir Ruparelia among the former shareholders expected to engage with lawmakers.

Crane Bank was one of Uganda’s largest commercial lenders before BoU took over its management on October 20, 2016, citing serious financial difficulties. The bank was subsequently placed under receivership.

In January 2017, dfcu Bank acquired specified assets and assumed certain liabilities of Crane Bank, including customer deposits. The transaction enabled customers to access their accounts through dfcu, but it did not transfer every liability and claim associated with the failed lender.

The intervention and subsequent transfer generated legal disputes involving BoU, Crane Bank’s former shareholders and dfcu Bank.

BoU pursued allegations against Mr Ruparelia concerning funds allegedly taken from Crane Bank. The central bank lost at the High Court and Court of Appeal before withdrawing its final appeal to the Supreme Court in December 2021. The withdrawal ended the domestic proceedings without a substantive Supreme Court determination of the underlying allegations.

Separately, Crane Bank and its shareholders initiated proceedings in England against dfcu Bank and other parties over the transfer of Crane Bank’s assets. They allege that the assets were transferred at an undervalue through an improper arrangement, with the claim valued at more than £170 million.

The COSASE inquiry is expected to establish how these matters relate, if at all, to the receivables recorded in BoU’s financial statements and what steps remain to be taken to resolve the outstanding claims.