Dfcu’s Board of Directors, led by Elly Karuhanga as Chairman has declined to allow its Managing Director Jumna Kisaame to resign from the bank, Eagle Online can say.
Sources further say Kisaase has already handed in his resignation but sections of the board want him around to explain the Crane bank transaction while other sources say he is relinquishing the bank to give room to William Ssekabembe who two months ago was on the move to KCB. This website reported that Ssekabembe had been given a job of Managing Director at the Kenyan KCB bank but his move was squashed after KCB wrote to BoU seeking clearance for him as MD.
The latest developments is the newest in the series of events that have evolved Dfcu since January 2017 when the bank took over Crane Bank at Sh200 billion in the controversial transaction that has tainted the image of the bank and the regulator of the local financial sector, the Bank of Uganda (BoU).
Parliament intends to question BoU Governor Emmanuel Tumusiime-Mutebile and other top bank officials over the sale of Crane Bank to Dfcu. The officials will also be questioned in regard to the sale and liquidation of six other commercial banks, now defunct.
However, since Dfcu took over Crane Bank, all that has come out of the former is news of internal contradictions. The first of such was Britain’s Commonwealth Development Corporation (CDC) intention to sell off its shares.
Also there has been forced resignations of staff at the bank, many joining DFCU’s local competitors but some top managers who left carried key clients to the new the employers, leaving DFCU helpless.
Days ago Eagle Online reported how Kisaame was under pressure to explain to the banker’s shareholders how Shs1.8 billion was spent on the construction of the Dfcu Financial Centre located on the plot of 50×100 at Namanve Industrial and Business Park.
According to the source, shareholders think the project cost Shs700 million. Roko won the contract to build the building. But Roko is said to have subcontracted Kisaame’s construction company to do some of the work.
Months ago, Arise BV’s Deepak Malik who has been a director on the board of the bank resigned and left the board.
Malik’s resignation at the time meant Dfcu board was left with five other non-executive directors led by All Elly Karuhanga as Chairman. Others directors are; Albert Jonkergouw, Winifred Tarinyeba- Kiryabwire, Frederick Kironde Lule and Michael Alan Turner.
Analysts say the Malik’s decision to resign confirms reports that Arise B.V. with over 50 percent shares intends to leave especially that Britain’s CDC Group intends to exit, following Dfcu Bank’s controversial acquisition of Crane Bank yet Crane Bank had assets worth over Shs1 trillion.
Reports indicate that CDC is leaving for various reasons which include poor economy but some sources say CDC wants to dodge paying taxes on its dividends.
Financial analysts say with the revelation by Auditor General that Dfcu acquired Crane Bank Limited and yet it was the valuer and at the same time a buyer could land top Bank of Uganda executives in trouble as big shareholders of Dfcu are spending sleepless nights. The situation is made worse as the case is also in court.
DFCU Shareholding percentages
Arise BV 58.71 per cent
CDC Group of the United Kingdom 9.97 per cent
National Social Security Fund (Uganda) 7.69 per cent
Kimberlite Frontier Africa Naster Fund 6.15 per cent
2 undisclosed Institutional Investors 3.22 per cent
SSB-Conrad N. Hilton Foundation 0.98 per cent
Vanderbilt University 0.87 per cent
Blakeney Management 0.63 per cent
Retail investors 11.19 per cent
BoU staff retirement benefit scheme is 0.59 per cent