The UK Supreme Court has ordered that DFCU, its former top managers Juma Kisaame, William Sekabembe and Jimmy Mugerwa must stand trial in the UK court for their role in the fraudulent acquisition of the assets of Crane Bank Limited from Bank of Uganda.
DFCU and its former directors had sought to avoid accountability in this case by presenting a jurisdiction challenge, arguing that the corrupt sale of the assets of Crane Bank Limited to DFCU by Bank of Uganda was an act of state by the Government of Uganda, and that UK Courts had no jurisdiction to hear the case. This argument was rejected by the UK Court of Appeal, and they were ordered to file their defences and proceed to trial in the UK High Court.
They then sought leave of the UK Court of Appeal to appeal this decision to the UK Supreme Court, which leave was denied. They then filed another application seeking the leave to appeal from the UK Supreme Court. This application has also been refused as the UK Supreme Court found no merit in their application. They have been ordered to pay costs and must now file their defences within 21 days.
DFCU Limited, DFCU Bank Limited, Jimmy Mugerwa, Juma Kisaame, William Sekabembe, CDC Group PLC, Norfinance AS, Rabo Partnership B.V., Arise B.V., Stephen Caley, Michael Alan Turner, Albert Jonkergouw, Willem Cramer, Ola Rinnan and Deepak Malik have all been sued in the UK in a case seeking the recovery of over $220 million, before assessment of additional damages, which experts believe will raise the amount to be recovered to over $500 million.
Back in Uganda, late last year, Justice Asiimwe of the High Court had agreed with the lawyers of Meera Investments Limited that DFCU bank’s acquisition of the 48 properties was illegal and invalid as done without the consent of Meera Investments Limited.
Upon taking of CBL, DFCU hurriedly registered the 48 properties in its name, which court also said was illegal. Even if DFCU bank claims it had vacated the premises, the judge said it must vacate after restoring the facilities to the tenantable position. In otherwise, DFCU bank must rehabilitate the properties before new tenants can occupy them. The same court ordered that Meera Investment Limited be compensated with Shs2.4 billion.
