Mathias Katamba, Dfcu bank MD

Dfcu bank Uganda Managing Director Mathias Katamba is under scrutiny after it emerged that he forced the bank’s management to controversially donate Shs500 million to Buganda Kingdom, raising questions of conflict of interest and sectarian choices.

This website has reliably learnt that Senior Dfcu Management questioned why Katamba zeroed down on donating Shs500 million to Buganda Kingdom yet the country has many other kingdoms that have not been considered for such grants.

Top management has also queried whether such a donation may not trigger sectarian undertones given the fact that Katamba is a known close associate of senior Buganda Kingdom officials, and that he is particularly close to former deputy Katikiro, Apollo Makubuya.

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During one of the many meetings that have been convened over the matter, one of the directors asked Katamba why his predecessor, Juma Kisaame, never had such an initiative with Busoga Kingdom, yet it is less privileged than Mengo.

“Katamba could not definitively explain why he chose Buganda Kingdom to benefit from such a dubious donation. It was certainly not in good faith. Had it been in good faith, then certainly other Kingdoms would also have benefitted, “a Dfcu director, confided to this website.

Kisaame resigned as Dfcu Managing Director in October 2018 as the bank went into a downward spiral amid pressures of taking over the highly-successful Crane Bank.

On assuming the reigns at Dfcu Uganda, one of Katamba’s key assignment was to ensure that Dfcu improves its Minimum Capital Requirement (MCR), a task he has badly failed at.

What triggered more suspicion was that Katamba’s initial proposal was to give Shs500 million disguised as Corporate Social Responsibility(CSR) to Buganda Kingdom and when it was rejected, he returned with an alternative of funding the Kabaka Birthday Run.

Dfcu officials familiar with Katamba’s controversial appointment as Dfcu Managing Director say that he was helped by the Mengo establishment to secure the highly coveted job and that the fictitious donation may be a pay-back package to the central kingdom.

This website also understands that some Dfcu board members, are said to be furious over the questionable donation to Buganda Kingdom and plans to summon Katamba to explain why he has failed on the Key Performance Indicators (KPIs) that were set for him when he was appointed in October 2018 and is now expending energy on transactions that do not bring capital to the bank. They allege that this could easily be understood by other traditional leaders and kingdoms where the bank operates as well.