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DFCU workers in mass exodus

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All isn’t well at Dfcu bank as the restructuring by management has seen more employees are fleeing the bank.

Sources within the bank told Eagle Online that at least over 70 workers in the last two months have left the bank under unclear circumstances. They further say even the human resource department that used to announce entry and exists at the bank have this time refused to announce exist because it is alarming.

Most those leaving are reportedly joining Housing Finance Bank and KCB bank.
“The situation is tense as you cannot tell who is next but we are only made aware that so and so has left when they don’t report for duty. The problem is that we aren’t allowed to discuss anything concerning what is happening.”
This website understands that what prompted the mass exists is that ongoing shakeups where seasoned managers and employees are being demoted and instead the young ones who are elevated to supervise their former bosses as heads of units. However, this come in with pay cuts which several employees are against and instead of waiting to be ‘humiliated’ most managers have opted to leave.
The restructuring was hired by the board after Dfcu tookover Crane bank. Dfcu started by firing all employees who had previously worked with Crane bank before moving in to downgrade in an effort seen as trying to get the old guards out.

However, other sources told Eagle Online that another reason why Dfcu is reducing on many power could be in line to downgrade and make saving of the huge salary so that the bank can realize liquidity. The abnk recently announced that it had run out of liquidity.
This development also comes at the time when Deepak Malik who has been a director on the board of the bank resigned and left the board.

Malik’s resignation as a non-Executive Director means the Dfcu board is now 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. intends to leave especially that Britain’s Commonwealth Development Corporation (CDC) Group intends to exit, following Dfcu Bank’s controversial acquisition of Crane Bank Limited in January last year at only Shs200 billion 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

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