DFCU CALLS FOR CRISIS MEETING OVER DEPARTURE OF MINORITY SHAREHOLDERS

By our reporter

www.mknewslink.com

In Kampala

DFCU Bank is yet embroiled in another crisis after the Bank’s minority shareholders asked the top management to source for an investor to buy their stake since they are no longer interested in the business.

An official in the bank who spoke to this website on condition of anonymity because he isn’t authorized to speak to the press, revealed that over the weekend DFCU Managing Director Mathias Katamba held a crisis meeting with his predecessor Juma Kisaame and lawyer David Mpanga who designed a plan to take over Crane Bank.

“Among the issues discussed are; the pull out of minority shareholders, downsizing of the business, crane bank and Katamba’s ambition for Bank of Uganda top job,” said a source on Monday morning.

Katamba as the MD of the business told Mpanga and Kisaame that unlike them he has a future ambition of working in Bank of Uganda either as Deputy Governor or Governor.

“Therefore Kisaame and Mpanga should better handle their mess with BoU since they were at the center of Crane Bank acquisition,” added a source.

Katamba plainly said he will not involve his face in a matter that he never participated in which he believes could dent his image at some point when he quits DFCU.

Succumbing to Katamba’s pressure, Kisaame and Mpanga contacted Bank of Uganda director of legal Margret Kasuule who is perceived as their ally.

“The purpose was to inform her to find a way of handling Crane Bank mess once and for all since the illegal purchase has been haunting DFCU management as it continues to lose business, reputation and clients,” said a source.

Ms Kasuule is currently on leave, she promised to begin documenting legal files that will legitimize/cover up Crane Bank sale and also end the crisis DFCU has been once she resumes duty next week.

Also DFCU management discussed a possible downsizing of the business by closing a number of branches across the country as a means of cutting costs.

Katamba reportedly told the weekend meeting that because the minority shareholders are quitting the bank, its imperative for DFCU to begin a strategy to restore trust both on their shareholders and clients by plugging all the loopholes first forward by tackling the issue of Crane Bank.

It must be remembered that last year, DFCU returned buildings which formerly belonged to Crane Bank that the bank had occupied falsely.

This website has learned that in the process of downsizing DFCU has planned to lay off 20% of the workers who will be labelled unemployed.

This development further threatens the future of DFCU after one of their biggest shareholders Commonwealth Development Corporation (CDC) Group last year pulled out their investment from the bank.

Whereas CDC couldn’t give a valid reason for quitting the bank, source say their departure stems on the decision to acquire DFCU which the investors vehemently protested.

www.mknewslink.com a greater western Uganda news website
Email: wmuhwezi75@gmail.com
Tel: +256702680106