dfcu Bank Admits Not Knowing Value Of Crane Bank Assets

The value of the disputed properties and leaseholds of the defunct Crane Bank Limited that were taken over by dfcu in 2017 remain unknown after the buyers (dfcu Bank) made a U-turn and admitted that they do not have a valuation report from the Chief Government Valuer, Daily Monitor newspaper, reported on Friday.

The valuation report by the Chief Government Valuer has become a point of interest for MPs investigating irregularities in the closure of seven banks because it clears the air on the value of the 68 Crane Bank branches that were taken over by dfcu. The report will also shed light on Crane Bank assets that its shareholders have told the Committee that they were worth Shs1.2trn in 2015, two years before it was sold.

The report will also offer clues on the disputed Shs478b that BoU claims it injected into Crane Bank to help it remain afloat. However, the Auditor General and the former Crane Bank shareholders led by city tycoon Sudhir Ruparelia have disputed the figure. The MPs have since asked AG to audit the expenditure.

MPs on Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) since Wednesday faced frustration in their pursuit of the valuation report as dfcu officials yesterday made a U-turn from their earlier position that they have a valuation report by the Chief Government Valuer.

dfcu officials led by chairman Jimmy Mugerwa had told Cosase on Wednesday that they have a government valuation report but when MPs demanded that the report be tabled, the dfcu team promised to present it yesterday.

The committee proceedings were, however, thrown off-balance last evening, after dfcu officials led by the managing director Mathias Katamba, made a U-turn and said they only have a private valuation report by Ernst and Young, a firm that deals in tax, transactions and advisory services. The dfcu team included the former MD, Mr Juma Kisaame.

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