Dfcu bank is in a PR crisis after internal documents leaked indicating, the financial institution was existing branches they had fraudulently taken over from Meera Investment which part of the Ruparelia Group owned by city businessman Sudhir Ruparelia.
This website exposed a leaked internal document from Dfcu calling for bids to provide for space in areas and districts they currently occupy some of the properties they fraudulently took over after Bank of Uganda sold Crane Bank.
The embattled DFCU Bank has conceded and has decided to vacate all the branches owned by Meera Investments Limited.
However, in a bid to nip the leaked document and stories afterword, Dfcu bank chief of business and Executive Director William Ssekabembe has gone on defensive saying it is fake news but has declined to comment on the leaked document. Ssekabembe has even hired some of the social media bloggers and other online websites to spin and deny.
“Dfcu bank has a network of 63 branches spread across the country. As we communicated at this year’s annual general meeting in June, the bank is in the process of implementing its digital strategy to drive better customer experience, improve efficiency and align its operations with emerging trends in the financial rationalization of branch operations and redesigning of branch model” reads the statement from Ssekabembe”.
Nevertheless, the statement shows the inconsistencies as it talks about rationalization, digital and agency banking and further rationalization of branches. However, the bank’s statement shows they are moving in the direction of closing a number of branches which Ssekabembe doesn’t want to admit.
Click on the link to read the internal document calling for bidding
RFP – Consultancy services for relocation of selected dfcu Bank branches 2019 (1)
This website has learnt that the contradiction is as a result of the power struggle between Ssekabembe and Managing Director, Mathias Katamba. It is understood that Katamba is of the view that properties illegal acquired by the bank be returned to Meera Investment since they aren’t part of the Crane Bank but a group led by Ssekabembe who represents views of beneficiaries of the Dfcu-Crane Bank deal are against. Recently Dfcu wrote to Bank of Uganda for guidance on how to handle the issue of branches but BoU hasn’t replied them one month after.
DFCU Bank has called already opened bids for companies that want to provide consultancy services at it seeks to relocate to new areas in various districts and towns across Uganda.
The bank has been operating its business in buildings/properties belonging to Meera Investments Limited since it acquired Crane Bank Limited in 2017.
In August it emerged that the bank was misled by city Law firm Sebalu & Lule Advocates to illegally transfer title properties into its name yet the properties belong to Meera Investments Ltd even though it had leased them to Crane Bank Limited.
According to a leaked dossier, the Sebalu & Lule Advocates who have been barred by court from representing the same bank against city tycoon Sudhir Ruparelia for being conflicted. The law firm misled dfcu Bank to transfer leasehold titles from Crane Bank Ltd during the controversial takeover two years ago.
In a leaked document titled Transfer of former Crane Bank household properties, dated May 8, 2017, “the law firm skipped important aspects of the law including the fact that banks are not allowed to invest in business for fear of conflict of interest with their clients, apart from their main premises” banking analysts say.
“In light of the lengthy of time between the completion of date and when dfcu can vividly exercise the option to rescind the purchase of household properties, our recommendations is that the transfer be registered immediately,” reads an excerpt from the leaked document.
The whole procedure was entangled with fraud as there was no consent from the Landlord (Meera Investment Ltd) before transferring the lease to another party.
“The developments in August nullified the transfer as lack of consent alone nullifies the whole procedure” as ownership belonged to Meera Investment Ltd, an independent
