Businessman Sudhir Ruparelia has pinned former Central Bank Executive Director Supervision, Justine Bagyenda for forcing him to acquire National Bank of Commerce (NBC), days after it was closed by the Bank of Uganda in 2012 after 18 years of operations. Crane Bank Limited, according to Sudhir, paid 1.12 billion Shillings as consideration of the agreement […]
Businessman Sudhir Ruparelia has pinned former Central Bank Executive Director Supervision, Justine Bagyenda for forcing him to acquire National Bank of Commerce (NBC), days after it was closed by the Bank of Uganda in 2012 after 18 years of operations. Crane Bank Limited, according to Sudhir, paid 1.12 billion Shillings as consideration of the agreement to take over NBC.
The bank was dissolved on grounds that it had incurred continuous losses with half of its loans not performing to the required standard. According to the Central Bank, National Bank of Commerce had achieved no growth and its market share of deposits had fallen to 0.08 percent, making it the worst performing of the 25 commercial banks in the country then.
However, appearing before the Commissions, Statutory Authorities and State Enterprises (COSASE) committee of Parliament yesterday, Sudhir revealed that he was coerced by former Central Bank Executive Director Supervision, Justine Bagyenda, through a phone call placed to former Crane Bank Managing Director A.R Kalan, to acquire the bank.
“Crane Bank was not interested in acquiring the assets of NBC. Crane Bank did not bid to acquire these assets. Crane Bank was compelled by acquiring these assets by Ms Bagyenda. She did this on telephone. She called the Crane Bank MD and informed us that she was directing Crane Bank to acquire these assets. She was not asking. It was an order from the authorities, ” Mr Ruparelia said, adding that Crane Bank paid Shs 1.2b to buy deposits, treasury bills and non-performing loans from NBC.
The National Bank of Commerce was majorly owned by businessmen from Kigezi region, among them Former Premier Amama Mbabazi and Dr Ruhakana Rugunda, BoU Governor Emmanuel Tumusiime Mutebile, Amos Nzeyi, Jim Katugugu Muhwezi, Dr Ezra Suruma, and retired Supreme Court Justice George Wilson Kanyeihamba.
