The catastrophe surrounding and emanating from usurping of Crane Bank operations by Bank of Uganda and eventually selling it dfcu bank has had major consequences on the economy, Youth Power Research-Uganda (YOPRU), a group of youths that advocate for economic empowerment told a press conference.
“Crane Bank was involuntarily precipitated to close without taking time to analyze the impact of the bank to the economy. Our indigenous bank that was a rock of refugee to the business community was unceremoniously closed by weevils from Bank of Uganda,” a statement addressed to President Yoweri Kaguta Museveni and read by Ben Ssebuguzi, the team leader at a press conference on Tuesday said.
“Traders suffered hard because it had tailored needs with flexible terms. Youths lost jobs and worst of all, the directors, who have dedicated all their time to develop their country Uganda have been frustrated by mafias through depriving them the sweet of their investments. A bank that had Net Assets worth Ugx1.3 trillion was sold a paltry of about Ugx200bn,” it read in addition.
“Your Excellency, this is a significance of day robbery by people with selfish interests from Bank of Uganda who want to reap where they have not sown. As youths of Uganda, we castigate such attitude as it may scare other potential investors who would like to commit their resources in our country,” adds the statement.
“Mr. President, Crane Bank would have been saved if we had patriotic people in BOU given the fact that the Bank was the second largest indigenous bank which does not repatriate profits but ploughs back.
The bank needed special supervision because it had defied all odds and decided to penetrate the countryside where other banks fear hence promoting financial inclusion where the largest number of the unbanked population live, hence indirectly supporting government Vision of transforming rural communities into the money market through bank services,” continues the statement.
“By virtue of this, the bank was carrying ‘systematic risk’ where by the decision of closure was not supposed to be hastily done. We believe that this bank needed due diligence with utmost good faith.” They say that by letting Businessman Sudhir Ruparelia unfairly lose his bank, government was cultivating a bad investment culture both locally and intentionally.
“In the same vein, as the trustees and management of YOPRU, extend their sincere thanks to President Museveni, for implementing our recommendations in the petition highlighted above like prevailing over the anguish of BoU against Crane Bank directors by allowing negotiations outside court,” says the statement.
“This is very crucial because the frustration of Mr. Sudhir Ruparelia, the director of defunct Crane Bank by BoU can be equated to a local adage of washing and drying in mud. Mr. Sudhir is made by Ugandans themselves hence making Uganda to have one of the most successful investors in the region. So destroying him would mean destroying a thousand jobs for youths; it is easy to breakdown an investor, but very difficult to make another one.”