Mathias Katamba, Dfcu bank MD

 

They are seeking Shs48 billion compensation after wrongly being terminated

 

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Former employees of defunct Crane Bank have dragged Dfcu to High Court to compel the bank so that there is production and inspection of several documents held at the bank.

The development follows failed negotiations between Dfcu and the sacked employees who were shortly sacked after Dfcu taking over Crank bank. The former employees who are over 700 are in court accusing Dfcu for breach of contract and unfair dismissal.  They are seeking Sh48 billion compensation.

The bid is contained in an application filed at the Civil Division of the High Court in Kampala. Court has scheduled April 28, 2021, as the date when the parties to the case will appear.

In October 2016, the Bank of Uganda (BoU) took over the operations of CBL, on the allegations that the institution had become undercapitalised and posed a systemic threat to the financial system.

Subsequently, in January 2017, BoU informed the public that CBL’s assets and liabilities had been transferred to Dfcu.

The documents for inspection include contract agreements, comprehensive lists of terminations and reasons precedent, entire branch optimisation process, controversial job duplication, among others.

FORMER CBL WORKERS v DFCU

Also sought for inspection is the Purchase of Assets and Assumption of Liabilities Agreement between the Bank of Uganda and Dfcu.

The lawyers also want to scrutinise the Dfcu bank payroll in the month before the acquisition of the Crane Bank Limited business (December 2016 to January 2017), and after acquisition (January 25, 2017, to October 23, 2017).

In October, last year, 10 representatives of the 625 employees filed a suit at the court through Centre for Legal Aid and Maxim Advocates.

The lawyers of the aggrieved, say it is crucial to interrogate the rationale behind Dfcu’s decision.

They also seek to probe whether Dfcu’s decision was in tandem with the legal provisions that guide and instruct on layoffs.

former CBL employees sh48b compensation.

Dfcu asserts that it adhered to the mandatory procedures prior to the termination, and that those who resigned did so voluntarily.

On Wednesday April 7,2021,  mediation was closed after the parties failed to agree on a settlement. Immediately the former Crane Bank workers, represented by top human rights lawyer Isaac Ssemakadde of Centre for Legal Aid, filed and served on Dfcu lawyers Sebalu & Lule Advocates an application to compel production and inspection several documents hitherto withheld by bank. What’s Dfcu Ltd hiding in those documents? We shall find out on April 28 at 11:00am”

Dfcu profits fall by 67%

The latest results released by the bank indicate that the company registered a net profit of Shs24 billion in 2020, a decline from Shs73.4 billion made in 2019.