Finance

Finance (501)

Simbamanyo Ordered By Court To Pay Costs To Sudhir, Equity Bank

The commercial court has awarded Equity Bank Uganda Limited, Meera Investments Limited and Luwaluwa Investments Limited legal costs in an application against Simbamanyo Estates Limited.

Equity Bank was awarded Shs600m , Meera Investments was awarded Shs400m and Luwaluwa Investments Shs300m in a compensation that will deeply hurt the Simbamanyo owner Peter Kamya.

Kamya had utilised its prime properties as guarantees against its loans from Equity bank Ltd in November 2017. Failure to fulfil their loan obligations, Equity Bank went on to recover the outstanding debt worth $10.8 million which is about Shs40 billion.

In a bid to recover the outstanding debt, two properties were put for sale and these are Simbamanyo House on Lumumba Avenue and Afrique Suites, a four-star hotel at Mutungo Hill. This was after a notice was issued to Simbamanyo Estates demanding $398,362.33.

Simbamanyo Estates sued Equity Bank in an attempt to stop or delay the sale of the properties. Court denied the appeal and the properties were sold.

Simbamanyo Estates was sold to Meera Investments Limited which belongs to Sudhir Ruparelia while Afrique Suites was sold to Luwaluwa Investments.

An appeal to the court to overturn the sale of Simbamanyo House to Meera Investments was made on 17th February, 2021 but the commercial court denied the appeal.

Simbamanyo was instead ordered by court to pay Equity Bank, Meera Investments Ltd, Luwaluwa Investments and the Commissioner of Land Registration legal costs.

It is upon this background that Equity Bank Lawyers filed a bill of fees to be approved by the court and sought after.

SOURCE: Trumpet News

We Have Govt's 25% Munyonyo Commonwealth Resort Shares But Who Do We Give It To - Sudhir Questions

The clerk to parliament Jacqueline Muhimbise in a 5th November 2021 letter to Dr. Sudhir Ruparelia in his capacity of managing director Meera Investments Ltd, the company that owns Munyonyo Commonwealth Resort, invited the businessman to appear before the Parliamentary Sectoral Committee on Tourism, Trade and Industry on 12th November 2021.

The matter on card for discussion at the scheduled meeting at parliament regarded government’s equity interests in Munyonyo Commonwealth Resort amounting to 25% that is supposed to be managed by Uganda Development Corporation (UDC).

According to the invitation letter from the clerk to parliament it seemed as though Ruparelia has barred government from taking over its interest in the five-star resort hotel.

The invite reads: “The committee has noted with concern that Uganda Development Corporation (UDC) as an investment arm of Government, has not been availed an opportunity to manage the Government shares it owns in Munyonyo Commonwealth Resort,”

It added: “Thus, you are invited for a meeting with the committee, to explain the status of Government shares and the accessibility UDC has had to the shares, in order to efficiently manage them,”

However, in a response to the clerk to parliament dated 10th November, Ruparelia confirmed that  government, through the Ministry of Finance Planning and Economic Development (MoFPED), holds 25% of the shares (equivalent to 15,061,209 – 120 ordinary shares).

The other shareholders, according to Ruparelia, are Meera Investments Ltd (8,434,277,107 ordinary shares), Sudhir Ruparelia (30,724,866,605 ordinary shares) and Jyotsna Ruparelia (6,024,483,648 ordinary shares).

Ruparelia added that government had and still has the right to choose which entity should hold its shares on its behalf, but added he was yet to receive directives to transfer the shares from MoFPED to UDC.

“We have not received communication from the Minister of Finance, Planning and Economic Development regarding the decision to transfer its shares to UDC as choses and preferred entity to hold GoU shares.

"In case we missed it, kindly share a copy so that when we appear we address you about it appropriately through the normal procedures for transfer of shares and UDC will then be the entity holding GoU shares,” Ruparelia said in the letter to clerk to the parliament.

Meanwhile, as this matter came into the public domain, the Ministry of Finance, Planning and Economic Development Permanent Secretary/ Secretary to the Treasury, Ramathan Ggoobi wrote to Parliament, clarifying the status of the government’s 25% shares held in the Munyonyo Commonwealth Resort.

In the letter, (Ref AGO/13918/21) addressed to the Clerk to Parliament Mr Ggoobi explained that the ministry, through whom the shares are held, is at the tail end of finalizing the share transfers to the Uganda Development Corporation, the Government of Uganda’s investment arm. 

“This Ministry received a communication Ref. UDC/CR/110/1/1 dated 27th January 2020 from the Executive Director, Uganda Development Corporation (UDC) requesting the Ministry for a transfer of all the Shares held in Munyonyo Commonwealth Resort Limited to facilitate the operationalization of schedule 2 of the UDC Act,” Ggoobi wrote to clerk to parliament.

He added: "The Ministry wrote to Solicitor General seeking legal advice on how to handle this transaction of transferring Government shares. In a letter, Ref: ADM.202/03 dated June 22, 2021, the Solicitor General guided on the transfer of the 15,061,209,120 shares from the Ministry of Finance, Planning and Economic Development to Uganda Development Corporation.”

“The Ministry represented by the Hon. MoFPED has since signed the transfer of shares stock forms (being the holder of the shares on behalf of the Government) and returned the same to the Executive Director, UDC for filing with the Registrar of Companies and further management as evidenced in our Ref. AGO/139/81/21 dated 22nd October 2021,” Ggoobi further added.

Finance Ministry Assures Parliament On Transfer Of Gov't’s 25% Munyonyo Commonwealth Resort Shares

The Ministry of Finance, Planning and Economic Development (MoFPED) Permanent Secretary/ Secretary To The Treasury, Ramathan Ggoobi has written to parliament, clarifying the status of the government’s 25% shares held in the Munyonyo Commonwealth Resort.

In the letter, (Ref AGO/13918/21) addressed to the Clerk to Parliament Parliament Mr Ggoobi explained that the ministry, through whom the shares are held, is at the tail end of finalising the share transfers to the Uganda Development Corporation, the Government of Uganda’s investment arm. 

“Reference is made to your letter Ref. AB 215/287/01 dated 5th November 2021 to this office on the above subject matter and require a written explanation from the Ministry of Finance Planning and Economic Development (MoFPED) as the regulator of Agencies affiliated by Subvention,” Ggoobi wrote.

Munyonyo Commonwealth Resort Limited is listed in Schedule 2 of the Uganda Development Corporation Act, 2016 as one of those government investments in which Uganda Development Corporation is required to take over, manage, promote and facilitate the interest of the Government of Uganda effective June 1, 2016.

“This Ministry received a communication Ref. UDC/CR/110/1/1 dated 27th January 2020 from the Executive Director, Uganda Development Corporation (UDC) requesting the Ministry for a transfer of all the Shares held in Munyonyo Commonwealth Resort Limited to facilitate the operationalization of schedule 2 of the UDC Act,” Ggoobi wrote.

He added: The Ministry wrote to Solicitor General seeking legal advice on how to handle this transaction of transferring Government shares. In a letter, Ref: ADM.202/03 dated June 22, 2021, the Solicitor General guided on the transfer of the 15,061,209,120 shares from the Ministry of Finance, Planning and Economic Development to Uganda Development Corporation.”

“The Ministry represented by the Hon. MoFPED has since signed the transfer of shares stock forms (being the holder of the shares on behalf of the Government) and returned the same to the Executive Director, UDC for filing with the Registrar of Companies and further management as evidenced in our Ref. AGO/139/81/21 dated 22nd October 2021,” Ggoobi added.

In the letter, the Permanent Secretary/Secretary to the Treasury as that as guided by the Solicitor General, after the filing of the stock forms,  minister of Finance, Planning and Economic Development, Hon Matia Kasaijja, shall then proceed to notify UDC in writing of his substitution with UDC as the holder or overseer of the Government’s stake in the Company.

“Thereafter the Company shall enter Uganda Development Corporation’s name in its register of members and the transfer process will stand completed,” Ggoobi guided Parliament in a letter copied to the Minister of Finance, the Accountant General and the  Executive Director, Uganda Development Corporation.

This website has also seen another 22nd October 2021 (AGO/139/81/21) letter by the finance ministry PS to The Executive Director, UDC forwarding him the executed stock transfer forms.

“Reference is made to your letter Ref: UDC/CR/187/1 dated 22nd September 2021 regarding the above subject. The Ministry has fully executed the transfer of shares stock forms effecting the transfer of all the 15,061,209,120 shares held in Munyonyo Commonwealth Resort Ltd to UDC. This is, therefore, to forward the signed forms for further management,” Ggoobi wrote.

SOURCE: CEO East Africa

Businessman On Verge Of Losing Sh4.5bn Muyenga Property To Equity Bank In Fraudulent Loan Recovery Push

One of the reasons the banking sector has not grown in a manner that is commendable is because would be customers fear dealing with banks.

Many people believe that commercial banks are out their to rob off their hard earned money. Essentially, customers can use banks to keep their money and treasures there and to acquire loans which they can use to develop themselves.

Sometimes, depending on the choice of bank account the customers prefers, the money kept with the bank as savings comes with interests or all is chewed up in the name of bank charges, in this case, a customer loses what he or she saved.

Similarly customers who acquire loans from banks, depending on the investments they choose to inject their borrowed money into, make profits or is washed away in loses.

When a customer makes loses from the investment and fails to repay the loan, in the bank's attempt to recoup their loan, the customer loses the collateral and other moneys associated with operationalizing the loan.

Banks in Uganda have had their share of trouble with customer over mismanaged loans, the latest being Equity Bank who lately has been at crossroads with customers over mismanaged loans and related transactions. 

The latest bank-customer altercation to come to the public eye is between Equity Bank and city businessman Harrison Busingye. Unlike other people having issues with Equity Bank over gone bad loans, Busingye didn’t borrow money from the bank.

Busingye, the managing director and owner of Hydra Homes (U) Ltd, according to emerging reports stood as a guarantor for his brother, Nathan Mwesigye, who was acquiring a Shs350m loan from Equity Bank in 2018.

According to Shift Media News, Busingye, as a guarantor, was demanded by the bank to mortgage a title as security for the loan. The security that Busingye staked was that of a title of a residential apartment worth Shs4.5bn located in an upscale Kampala suburb in Muyenga.

When Mwesigye struggled to repay the loan, Equity Bank, on top of selling off the trucks (worth Shs250m each) of the loan defaulter, they also went ahead to attach the property of the guarantor, Busingye's property in Muyenga.

The bank going for the property of Busingye procured the services of Excel Auctioneers and Court Bailiffs who together with their employer threatened to advertise the Muyenga house if Busingye didn't pay up in seven days. Afraid of losing his property, Busingye petitioned the Director Public Prosecutions (DPP) for help.

In the petition which Busingye filed on 9th January 2020 complained about an alleged plot by three Equity Bank officials - Abel Musiime, Joseph Munyua (Credit & Risk Manager) and Annet Nakigudde - to auction his property located in Muyenga comprising of plots 4529 Bock 244 Kyadondo.

In the report released on 2nd February 2021, the DPP instructed the Director CID to investigate the matter and the three officials.

The three Equity Bank officials had allegedly imposed on Busingye a loan of Shs175m which he hadn't applied for. Busingye further alleged that 'for purposes of illegally auctioning his property' the three officials had 'registered mortgages on the loan facilities which he never got'.

Upon being interrogated, the three bank officials acknowledged that Busingye was a guarantor for Mwesigye and that after Mwesigye defaulted, they opted to auction the guarantor’s security to recover the accumulated loan by imposing the Shs170 loan which according to detectives was fraudulent since Busingye didn’t apply for it.

The detectives also discovered that Equity Bank also registered irregular mortgages of Shs503, 600, 000, and Shs650 million to the land title of Busingye as encumbrances to the loans he never got.

Equity Bank didn’t stop at that, they also registered Busingye and his Hydra Homes (U) Ltd in the CRB as bad debtors, and further falsely registered another loan of Shs850m which he never applied for hence blocking him from accessing any loans from other financial institutions.

In simple terms, Equity Bank had slapped a loan of Shs2, 078, 600, 000 that he never got. On seeing that the matter was going out of hand, Equity Bank suspended the three officials implicated in the suspected fraud. But just a few months after CID did its investigation, other clicks in the bank are up to their games once again.

An investigation by Shift Media News reveals a new gimmick orchestrated by a one Paul Babwetere who works as Head of Recovery at Equity Bank, and Faith Lapula who works in legal department is eying to take Busingye’s property in Muyenga.

On 18th October 2021, working on instructions of Equity Bank again, Excel Bailiffs & Auctioneers  in a communication Ref EBA/GEN/2021 to the Directors of Hydra Homes, Attn. Harrison Busingye, Titled FINAL DEMAN NOTICE, warned and demanded that Busingye pays the defaulted loan amount of Shs250m.

“We have instructions to demand you all the loan amount due to the bank within 7 days from the receipt of this notice unless you clear your obligations with the bank by paying a sum of 250, 265, 810 (Two hundred fifty million two hundred sixty five thousand eight hundred ten shillings ) together with any interest that would have accrued at the time of payment and 15% of the said amount being our fees,”

In the event that you fail to clear your facility with the 7 (seven days) referred to herein above, we have further instructions to advertise your security comprised in plot 4529, block 244 at Muyenga, Kyadondo, Mengo and cause for its sale to have all the money recovered," Excel Bailiffs & Auctioneers said in the notice.

Not to lose his property without a fight, Busingye through his lawyers, SIGNUM & Company Advocates wrote to the Director CID Vide (SID/CV/18/106) on October 28 2021 seeking fresh intervention.

“Following the timely intervention of your office in the captioned matter, Equity bank has once again resumed its campaign to illegally disposes our client of his property comprised in plot 4529, block 244, Kyadondo,"

"This is to seek your intervention in this matter to put a stop to the illegal acts of Equity Bank and further expedite investigations into the crimes that were reported by client to police.

Officials at CID Headquarters Kibuli told Shift Media News that this matter was duly investigated and closed. Meanwhile Harrison Busingye has opened a fresh case of criminal trespass against Excel Bailiffs & Auctioneers.

Shift Media News efforts to get Jimmy A. Mwangangi, the Head of Credit and Elizabeth Nayiga Wamala, the Legal Senior Manager were futile.

I&M Bank Promises Customized Financial Services After Rebranding

New entrants into the Uganda banking sector, I&M Bank (Uganda) Limited commences its operations in the country with a customer centric approach and will continue with the same zeal and commitment of Orient Bank, the establishment they took over in April this year.  

Kumaran Pather, the bank’s CEO said that I&M Uganda will focus on supporting critical sectors that impact growth across the region, including agriculture, transport, technology and manufacturing through offering attractive, digital-focused solutions. 

“I&M Group PLC and its subsidiaries have made significant investments in key sectors across Eastern Africa's regional economy, including banking and finance, SMEs, real estate, financial technology, trade, agriculture, and infrastructure,” said Pather.

I&M Group PLC, the parent company of I&M Bank Uganda, on Monday officially launched its rebranded operations in Uganda following an acquisition of a 90 per cent shareholding stake in Uganda’s Orient Bank Ltd

Now, with this rebranding, all former Orient Bank branches, properties, will now bare the corporate logo and colours of I&M Group PLC.  

Suleiman Kiggundu, the bank’s chairman noted that the current global challenges like climate change and climate change call for financial institutions like I&M Bank Uganda to be innovative, stand firm and embrace the pressures.

He stated that with Orient Bank having a countrywide presence, they have great satisfaction of what has been achieve and now they deliver to shareholders, new owners and customers a bank of substantial capabilities.

“The rebrand will not only unlock the bank’s potential, but also will enable it to reach out to more customers within Uganda, and in Eastern Africa as a whole. Further the move will enable the bank to roll out a more diversified product and service offering to its target market,” Kiggundu explained.

Chris Low, the regional managing director of I&M Group confirmed that Bank of Uganda, the regulator of the banking sector in Uganda, had handed them the license to operate in the country.

The bank had received similar approvals from Central Bank of Kenya, the Capital Markets Authority of Kenya and the Common Market for Eastern and Southern Africa. The bank also operates in Kenya, Rwanda, Uganda, Tanzania and Mauritius.

Low said I&M Bank will put on the market the much needed financial products that will benefit small and medium enterprises and customers that are engaged in cross border trade.

“The acquisition of Orient Bank has put I&M Group on the right path and aligns with the I&M Group strategy of offering unique services, including digital financial solutions,” Low further said.

Prudential Uganda, Price Water Coopers Launch Prudential Best HR Practices Survey 2021

Prudential Assurance Uganda Limited and Price Waterhouse Coopers (PWC) Wednesday launched the Prudential Best HR Practices Survey 2021, at an event held at Kampala Serena Hotel.

The Prudential Best HR Practices Survey seeks to highlight key opportunities as well as share best employment practices and recognise organisations that are championing best employment practices in the country.

This initiative is being held in partnership with the Uganda Investment Authority, Human Capital International, Private Sector Foundation Uganda (PSFU), and the Federation of Uganda Employers (FUE).

Speaking at the launch, Mr. Arjun Mallik the Regional CEO of Prudential Eastern and Central Africa, highlighted the importance of prioritizing and promoting best employment practices as a key factor in building a productive workforce and organisations with a soul.

“At Prudential we strive to create a work environment where our diverse and talented team can bring their authentic selves to the workplace, in order to create, innovate, learn and grow.   

Best practice continues to evolve and The Prudential Best HR Practices Survey is an opportunity for us employers to learn and share experiences and know-how from one another, to improve outcomes for our customers, colleagues and industries” he observed.

While speaking at the event, Prudential Board chairman, Apollo Makubuya said “Prudential’s Purpose is to help people make the most of life. This translates beyond our services but also to employment. This initiative is an effort by Prudential to champion this conversation in the market and offer a platform where organisations can learn from each other and offer knowledge for the betterment of the labour market as a whole”

Speaking on behalf PWC, Francis Kamulegyeya , the Country Senior Partner, explained that the data collected from the different organisations will be subject to a rigorous review process in order to come up with useful facts that will shape and inform improved employment practices in the country.

“The survey we are running is a human capital and talent management best practices survey aimed at highlighting key opportunities, as well as sharing best employment practices by various organisations. The survey will be filled out by employees to measure their point of view, assessing whether it aligns with that of the organization or its departments; as well as create a culture of connection, collaboration, and trust in the workplace, while making sure employees feel inspired to perform at their best,” he said.

The insights obtained from this survey will be analysed by PwC to give valuable information to employers and HR Managers on the most compelling trends under the different thematic areas at the heart of outstanding human capital and talent management strategies in 2021 and beyond.

Following the publication of results of the survey, an awards gala will be held to recognise and appreciate the employers with best HR practices.. Participating organisations will also receive a copy of the Prudential Best HR Practices Survey 2021 to help improve their HR practices if they so wish.

Letter To President Museveni: Open Mutebile’s Investigation To All Who Have Lost Properties To Banks During Covid-19 Pandemic

Dear President,

Greetings. We woke up to a letter on social media purported from you, instructing Bank of Uganda Governor to investigate and report back to you a case in which Simbamanyo House, now, Gender and Labour House, changed ownership.

Assuming it is your letter (too much fake news on social media) dated September 3, 2021, where you directed Prof Mutebile to investigate in one week the matter in which Mr Peter Kamya and Dr Margaret Muganwa had appealed for your intervention in matters regarding the sale of Simbamanyo House and Afrique Suites by Equity Bank, you are opening a Pandora box that you may not close without being branded selective in who to save when everyone in the ship is suffering the same fate.

You said, Bank of Uganda had directed that there should be no foreclosures of mortgaged properties by banks during the Covid-19 pandemic – And that Equity bank went ahead and sold the properties at very low prices, despite the fact that they had offered to get their own buyers but their efforts were in vain. I wonder if this also covered customers who were already defaulting on their loan obligations before Covid-19 struck – or – you believe the pandemic can be used as a cover for anyone who wants to cheat lenders!

I am certain by now, Mr President, you have received Mr Mutebile’s report, given the fact that the time framework you gave him of one week has expired. However, I am asking you kindly to be a father (you prefer to be a grandfather) who cares for all. You should be aware, Mr President that thousands of your citizens have been affected by Covid-19. Not just Mr Kamya and Madam Muganwa! Many, including youths and women you gave money for Emyoga are struggling to pay back despite suffering the pandemic disruptions. Kamya’s excuses make all of us want to run to you to help lift the burden of paying our loan and rent obligations we have struggled to meet during the past two years.

Every dark cloud has a silver lining. Mr President, I would like to first thank that you for listening to the pleas of Mr Kamya and Dr Muganwa. And maybe, God has used the duo to bring the cries of thousands to your attention.

Mr President, Ugandans have been crying out to you since Covid-19 pandemic struck for your intervention to make banks suspend loan deductions until the pandemic is over. This is owed to the fact that Covid-19 disrupted many businesses , especially small and medium business owners. The same was asked that you intervene in the matter of landlords demanding rent in the period you locked down the country. No one was working, yet, landlords continued demanding rent arrears or confiscated properties of tenants to force them to pay for the arrears. Mr President, you advised us to sit down with landlords and find a compromise since landlords too had loan obligations to their financiers.

There has been deafening silence too, as school owners cried to you that banks were taking over their schools after school closures made them default on their loan obligations.

The common mwananchi, Your Excellency, has suffered and somehow found a way to settle their creditors or resigned and allowed the contracts to take their course.

I don’t know whether I was surprised, and indeed the whole country, that you chose to intervene in the case of ONLY one wealthy man, Mr Peter Kamya and his two properties.

The common mwananchi who had loan obligations with banks and other lenders have lost their small properties; plots, cars, motorcycles, televisions, chairs, phones, name it – whatever was offered as security before taking the money.

Mr President, there is been silence from all offices in the country as this was taking place because no one wanted to disrupt the financial sector without serious consequences.

Now, Your Excellency, it is not possible Mr Kamya is any different from other Ugandans who have defaulted their loans and lost properties – maybe because for him he has access to your office, and you in particular that you can intervene on a the case which has been actually ruled on by courts of law.

Mr President, how lucky is Mr Kamya! Can you imagine, you are pleading for a man who between July 27, 2018 and 29 July 2020, received a whopping total of UGX of ugx9 billion from the ministry of Gender, Labour and Social Development, in rental fees alone! I had put the breakdown of that money herein! But he also has other tenants who continued to pay him but still failed to service the DEBT! He never paid a single cent to Equity bank in this period! Kamya must be lucky to get your intervention!

Mr Kamya is not one of the Ugandans seriously affected by Covid-19. In my opinion, having looked at his cases in courts, he belongs to a group of people who deliberately want to cheat banks using their connections and knowledge of corridors of power. If he cared about his assets, why did he continue defaulting on loan obligations despite the fact that was being paid for rent and other things! Mr President, you should also have this person of Peter Kamya investigated on how he earned and failed to pay – what was his motive? I also believe, Mr President, you need to interest yourself in when Mr. Kamya started defaulting on his Equity loans – It was not Covid-19 that got in his way.

Mr President, this is a slap in the face of hardworking and honest Ugandans who have continued to pay their loan obligations during the last two years – yet they are not as privileged as Mr. Kamya and Madam Muganwa!

The only difference between these people is that the wealthy people can access you and complain about banks and you call for interventions. And the poor have nowhere to run to.

In my opinion, if Simbamanyo followed the right procedure to change ownership, but still, the owner is assisted to regain it – Mr. Museveni you are opening a Pandora box where all of us loan defaulters will unite to ask for your intervention to stop banks and financial services from collecting loans.

Mr. President, if you are to be fair, you should open Mutebile’s investigation to include all mwananchi who have lost properties to banks during Covid-19 pandemic. You should also be in a position to pay debt obligations for those who don’t want to pay back once they borrow. That is the meaning of your directive, Mr. President. You are president for all, not just a few.

SOURCE: Watchdog News

Stanbic Dominates As Bancassurance Sees 54% Growth In Q2

The Insurance Regulatory Authority of Uganda (IRA) has published industry performance for the period April-June 2021 (Q2) with Bancassurance recording a 54% growth dominated by Stanbic Bank Uganda which consolidated its market-share to 21.2% from 19.1 between January and March.

According to IRA, the insurance industry registered impressive growth in the first six months of 2021 on account of improved product uptake and interest generating a total of UGX600bn in gross premiums.

Bancassurance (life assurance and other insurance products sold through banking institutions) contributed 8.2% of the industry’s total business in the first six months of the year.

In 2020, the bancassurance sector produced UGX32bn (full year volume) compared to UGX49.3bn in the first half of 2021 which represents a 54.24% growth, as per industry report published by the regulator.

For the period under review (April-June 2021), Stanbic Bank consolidated its first position by growing its industry market share from 19.1% in Q1 2021 to 21.2% in Q2 of 2021.

Stanbic Bank’s bancassurance business dominated its rivals in the industry, attracting UGX10.4billion in total Gross Premiums for the period April-June 2021.

The bank also out earned its peers, raking in UGX1.91bn representing 24.4% of all bancassurance commissions paid to banks for the period under review.

Stanbic Bank also dominated bancassurance business for Non-life (General insurance) product- lines generating UGX3.5Bn which is equivalent to 28% of total industry volumes.

Moving forward, Singh Dogo, Stanbic Bank Uganda’s Head of Bancassurance said focus will be on gaining market leadership for the Life insurance business where the lender enjoys 12% market share equivalent to UGX6.9Bn but two percentage points behind the top spot holder.

He added that the bank’s good performance in the second quarter was driven by growth in general insurance and credit life business as well as short-term insurance covers for clients.

“These are stable, and our projection is that they will continue to grow on account of their unique positioning to address customer coverage needs coupled with our assured fast claims service,” Dogo explained.

For the period ahead, Dogo sees Stanbic’s Bancassurance efforts focusing on expanding dominance in individual life products with value propositions on essential services such as Education, Medical, and life insurance policies.

“As Stanbic Bank transforms into a platform business, we hope to leverage on digital, data and behavioural science investment to drive growth, backed by enhanced ability to anticipate and respond to client needs and developing the right solutions for them,” he said.

 

 

BoU To Pay Billions In Costs After Withdrawing Appeal Against Sudhir

In an unexpected turn of events, Bank of Uganda (BoU) on 15th September announced it was withdrawing Civil Appeal No. 7of 2020 which they  (via Crane Bank Limited (in receivership) has logged in the Supreme Court against businessman Dr Sudhir Ruparelia and Meera Investments Limited.

In   the same spirit, Bank of Uganda stated that it will tolerate the respondent’s costs. “Take further notice that the appellant will pay the costs of the appeal and in the courts below to the respondents,” Bank of Uganda, the regulator of the financial sector, through their lawyers Messers Byamugisha & Co Advocates, said in a notice to Supreme Court.

Last year, Bank of Uganda ran to the Supreme Court to appeal the Court of Appeal ruling, which upheld an earlier High decision to dismiss a case that had been filed against businessman Sudhir by Crane Bank in receivership.

Prior, the Court of Appeal in Kampala threw out a case against Dr Sudhir.

The Panel of judges led by acting Chief Justice Alfonse Owiny- Dollo upheld the judgment of Commercial Court judge David K. Wangutusi in application filed by Bank of Uganda seeking a refund of Shs397 billion from Sudhir which he allegedly siphoned from the defunct Crane Bank. Court dismissed case with costs.

Bank of Uganda/Crane Bank in receivership (BoU) had appealed against an August 26, 2019 ruling where the High Court Commercial division dismissed with costs, the multi-billion lawsuit.

In his ruling, Justice Wangutusi stated that BoU/Crane Bank (in receivership) did not have a legal basis to sue Sudhir, the owner of Crane Bank, then the second biggest bank in Uganda.

Court ordered Bank of Uganda to pay Sudhir’s legal costs.

BoU /Crane Bank in Receivership had sued the property mogul and Meera Investments Limited for allegedly fleecing the defunct Crane Bank Limited (CBL) of Shs397 billion that the central bank wanted refunded.

Sudhir denied the allegation and has since counter-sued BoU, seeking compensation of $8m (Shs28 billion) in damages for breach of contract.

This Victory Is Not Just Yours, Lawyer Ssemakadde Congratulates Sudhir After BoU Withdrawals Crane Bank Appeal Case

This week, Bank of Uganda announced that it was withdrawing a Supreme Court appeal that was contesting the Court of Appeal’s dismissal of the case it filed on behalf of Crane Bank Ltd (in Receivership) vs. Sudhir Ruparelia and Meera Investments Ltd.

The withdrawal gave an unprecedented victory for businessman Dr Sudhir Ruparelia who because of now well-known unfair witch-hunt by Bank of Uganda lost his bank Crane Bank, injured his reputation and billions of money in lost revenue.

Reacting to the news, lawyer Isaac Ssemakadde congratulated the businessman for achieving a historic, hard-fought and well-deserved Supreme Court victory against the Bank of Uganda.

In a widely well received congratulated message, Ssemakadde said: “When no one dared to hold the shambolic & near-defunct Central Bank and it's corrupt and crooked lawyers to account, you risked all by bringing to them 'the mother of all battles’.

Adding: “You withstood insult and innuendoes, you ignored naysayers and doomsday prophets and you focused on the basic principles of law - and you have vindicated. This victory is not just yours,”

Ssemakadde, recently trending as the legal rebel, equated Sudhir’s fight with Bank of Uganda to that of the biblical David v Goliath. He explained that Sudhir’s win is ‘an emphatic call to action, for all the downtrodden and citizens of goodwill to muster courage and strike massive blows against all bullies in their respective spaces, in accordance with the law.’

“Your family and your businesses did not need this battle; you shouldered this burden for Uganda and especially the meek and less fortunate, for whom the protection of the law had become a myth,” he said before congratulating Rajiv Ruparelia, Sudhir's only son, for effectively coordinating this might pushback effort.

He also congratulated Sudhir’s legal  team at Kampala Associated Advocates for articulating the case from the High Court to the Supreme Court with sublime adroitness and dexterity.

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