Mr Denis Kibuuka Musoke. Photo credit, PC Tech.

Trouble is not yet over at the under fire Dfcu bank as another top manager resigns.

Eagle Online has reliably learnt that Denis Kibuuka Musoke, the head of consumer banking has officially left the bank. Dfcu is lately in the storm which has seen it down size its employees.

The bank was also heavily criticized on how it lazily acquired Crane Bank from Bank of Uganda without doing much background checks as it was revealed during the Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE).

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Just last month, Dr. Winifred Tarinyeba Kiryabwire, who had been a director on the board of Dfcu bank resigned and left the board of the bank.

According to an internal memo, Dr. Winifred resigns due to commitments she is due to undertake in another entity. She had been a non-Executive Director since September 2013.

“The Board of directors of Dfcu (the company) informs its shareholders and general public of the resignation of Dr. Winifred Tarinyeba Kiryabwire as a director in the company with effect from the 27th March 2019.

“Dr. Winifred Tarinyeba Kiryabwire joined and has diligently served the since September 2013 as a non-Executive director. She resigns due to commitments she is due to undertake in another entity. The Board takes this opportunity to appreciate the commitment and invaluable contribution made by Dr. Winifred during her tenure and wishes her the very best in her future endeavors.” Read the internal memo.

The exodus of top officials from Dfcu Bank continued the same month as Agnes Tibayeyita Isharaza who is now head of legal services at the National Social Security Fund (NSSF) quit.

Ms Isharaza was days ago appointed to that position by the Minister of Finance Matia Kasaija who supervises NSSF.

Sources at Dfcu say Mr Musoke had resigned due to internal fights at the bank and for that reason, he quit to join Top Finance bank.

Dfcu bank posted its 2018 profits indicating a sharp fall from its 2017 results. The results indicate a decline in the deposits, the bank registered 0.4 per cent decline from Shs1.987 trillion registered in 2017 to Shs11.979 trillion in 2018.
Liquidity squeeze curtails lending; lending grows by a mere 4 per cent from Shs1.334 trillion to Shs1.393 trillion in 2018.

The bank also registered assets decline by 4.6 per cent from Shs3 trillion to Shs2.88 trillion and as a result, Dfcu in 2018 experienced a 21 per cent decline in income from Shs519.8 billion to Shs410.6 billion.

Mr Auditor General Mr. John Muwanga in his report on defunct banks faults Dfcu Bank for engaging in transactions that did not follow proper guidelines as it bought of Crane Bank Limited assets at Shs200 billion, paid in installments. Dfcu bank also bought the assets of Global Trust Bank without following guidelines as laid in the Financial Institutions Act, 2004.

The sourcing of Dfcu bank as a buyer of both banks happened over telephone, according to Ben Sekabira, a senior banking officer at BoU. Former director of bank supervision Justine Bagyenda was at the forefront of selling the two banks to their rival Dfcu bank.

At the time Dfcu Bank bought Global Trust Bank in 2014, William Kalema was both on the board of BoU and the board of Dfcu Bank.

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