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MTV VMAs spoil Ghetto Kids would be unforgettable year

OFF WE GO! The 'Ghetto Kids' pose with the Uganda and US national flags at Entebbe International Airport shortly before their departure for the US

French Montana’s “Unforgettable” ft. Swae Lee is truly unforgettable especially to the Mama Hope Organization and the young dancing triplets, the “Ghetto Kids”.

The Ghetto Kids did not only get a chance to feature in an international video but also got an opportunity to perform for millions of viewers when they performed at the BET awards.

And it wasn’t just the Ghetto kids that benefitted from the video, the Mama Hope Organization benefitted more as they were given US $100,000 by French Montana.

Montana, too, benefitted from the relationship as his music video has been a success. It has registered close to 200million views in just three months.

Sadly, even with such success, the video never made it to this year’s MTV Video Music Awards.

According to the 2017 nominations announced Tuesday, rapper Kendrick Lamar landed the most nods for his video “Humble.”

Right behind Lamar’s eight nominations were Katy Perry and the Weeknd, who were tied with five nominations each.

Videos released between June 25, 2016, and June 23, 2017 are eligible for this year’s VMAs.

In keeping with the changes that MTV instituted for the MTV Movie & TV Awards, the gendered categories of Best Female Video and Best Male Video were replaced by a more general award, Artist of the Year. One new award was also added: “Best Fight against the System.”

The MTV Video Music Awards will air live on Sunday, Aug. 27 on MTV.

Here is the full list of nomination

VIDEO OF THE YEAR

Kendrick Lamar – “HUMBLE.” (TDE/Aftermath/Interscope)

Bruno Mars – “24K Magic” (Atlantic Records)

Alessia Cara – “Scars To Your Beautiful” (Def Jam)

DJ Khaled ft. Rihanna & Bryson Tiller – “Wild Thoughts” (Epic Records/We the Best)

The Weeknd – “Reminder” (XO/Republic Records)

 ARTIST OF THE YEAR

Bruno Mars (Atlantic Records)

Kendrick Lamar (TDE/Aftermath/Interscope)

Ed Sheeran (Atlantic Records)

Ariana Grande (Republic Records)

The Weeknd (XO/Republic Records)

Lorde (Republic Records)

BEST NEW ARTIST (Presented by Taco Bell®)

Khalid (RCA Records)

Kodak Black (Atlantic Records)

SZA (TDE/RCA Records)

Young M.A (3D)

Julia Michaels (Republic Records)

Noah Cyrus (Records)

BEST COLLABORATION

Charlie Puth ft. Selena Gomez – “We Don’t Talk Anymore” (Atlantic Records)

DJ Khaled ft. Rihanna & Bryson Tiller – “Wild Thoughts” (Epic Records/We the Best)

D.R.A.M. ft. Lil Yachty – “Broccoli” (Atlantic Records)

The Chainsmokers ft. Halsey – “Closer” (Disruptor Records/Columbia Records)

Calvin Harris ft. Pharrell Williams, Katy Perry & Big Sean – “Feels” (Columbia Records)

Zayn & Taylor Swift – “I Don’t Wanna Live Forever (Fifty Shades Darker)” (Republic Records)

 BEST POP

Shawn Mendes – “Treat You Better” (Island Records)

Ed Sheeran – “Shape of You” (Asylum/Atlantic Records)

Harry Styles – “Sign of The Times” (Columbia Records)

Fifth Harmony ft. Gucci Mane – “Down” (Syco Music/Epic Records)

Katy Perry ft. Skip Marley – “Chained To The Rhythm” (Capitol Records)

Miley Cyrus – “Malibu” (RCA Records)

 BEST HIP HOP

Kendrick Lamar – “HUMBLE.” (TDE/Aftermath/Interscope)

Big Sean – “Bounce Back” (Def Jam)

Chance the Rapper – “Same Drugs” (Chance the Rapper LLC)

D.R.A.M. ft. Lil Yachty – “Broccoli” (Atlantic Records)

Migos ft. Lil Uzi Vert – “Bad & Boujee” (300 Entertainment)

DJ Khaled ft. Justin Bieber, Quavo, Chance the Rapper & Lil Wayne – “I’m The One” (Epic Records/We the Best)

BEST DANCE

Zedd and Alessia Cara – “Stay” (Interscope)

Kygo x Selena Gomez – “It Ain’t Me” (Ultra/Interscope)

Calvin Harris – “My Way” (Columbia Records)

Major Lazer ft. Justin Bieber and Mø – “Cold Water” (Mad Decent)

Afrojack ft. Ty Dolla $ign – “Gone” (Wall Recordings/Latium/RCA Records)

 BEST ROCK

Coldplay – “A Head Full of Dreams” (Parlophone/Atlantic Records)

Fall Out Boy – “Young And Menace” (Island)

Twenty One Pilots – “Heavydirtysoul” (Fueled by Ramen/Atlantic Records)

Green Day – “Bang Bang” (Warner Bros. Records)

Foo Fighters – “Run” (RCA Records)

 BEST FIGHT AGAINST THE SYSTEM

Logic ft. Damian Lemar Hudson – “Black SpiderMan” (Def Jam)

The Hamilton Mixtape – “Immigrants (We Get the Job Done)” (Atlantic Records)

Big Sean – “Light” (Def Jam)

Alessia Cara – “Scars To Your Beautiful” (Def Jam)

Taboo ft. Shailene Woodley – “Stand Up / Stand N Rock #NoDAPL”

John Legend – “Surefire” (Columbia Records)

 BEST CINEMATOGRAPHY

Kendrick Lamar – “HUMBLE.” (TDE/Aftermath/Interscope) (Scott Cunningham)

Imagine Dragons – “Thunder” (KIDinaKORNER/Interscope) (Matthew Wise)

Ed Sheeran – “Castle on the Hill” (Asylum/Atlantic Records) (Steve Annis)

DJ Shadow ft. Run the Jewels – “Nobody Speak” (Mass Appeal Records LLC) (David Proctor)

Halsey – “Now or Never” (Astralwerks/Capitol) (Kristof Brandl)

 BEST DIRECTION

Kendrick Lamar – “HUMBLE.” (TDE/Aftermath/Interscope) (Dave Meyers & the little homies)

Katy Perry ft. Skip Marley – “Chained To The Rhythm” (Capitol Records) (Mathew Cullen)

Bruno Mars – “24K Magic” (Atlantic Records) (Cameron Duddy & Bruno Mars)

Alessia Cara – “Scars To Your Beautiful” (Def Jam) (Aaron A)

The Weeknd – “Reminder” (XO/Republic Records) (Glenn Michael)

 BEST ART DIRECTION

Kendrick Lamar – “HUMBLE.” (TDE/Aftermath/Interscope) (Spencer Graves)

Bruno Mars – “24K Magic” (Atlantic Records) (Alex Delgado)

Katy Perry ft. Migos – “Bon Appetit” (Capitol Records) (Natalie Groce)

DJ Khaled ft. Rihanna & Bryson Tiller – “Wild Thoughts” (Epic Records/We the Best) (Damian Fyffe)

The Weeknd – “Reminder” (XO/Republic Records) (Creative Director: Lamar C Taylor / Co-creative Director: Christo Anesti)

 BEST VISUAL EFFECTS

Kendrick Lamar – “HUMBLE.” (TDE/Aftermath/Interscope) (Company: Timber/Lead: Jonah Hall)

A Tribe Called Quest – “Dis Generation” (Epic Records) (Company: Bemo/Lead: Brandon Hirzel)

KYLE ft. Lil Yachty – “iSpy” (Atlantic Records) (Company: Gloria FX/Leads: Max Colt & Tomash Kuzmytskyi)

Katy Perry ft. Skip Marley – “Chained To The Rhythm” (Capitol Records) (Company: MIRADA)

Harry Styles – “Sign Of The Times” (Columbia Records) (Company: ONE MORE/Lead: Cédric Nivoliez)

BEST CHOREOGRAPHY

Kanye West – “Fade” (Def Jam) (Teyana Taylor, Guapo, Jae Blaze & Derek ‘Bentley’ Watkins)

Ariana Grande ft. Nicki Minaj – “Side To Side” (Republic Records) (Brian & Scott Nicholson)

Kendrick Lamar – “HUMBLE.” (TDE/Aftermath/Interscope) (Dave Meyers)

Sia – “The Greatest” (Monkey Puzzle Records/RCA Records) (Ryan Heffington)

Fifth Harmony ft. Gucci Mane – “Down” (Syco Music/Epic Records) (Sean Bankhead)

BEST EDITING

Future – “Mask Off” (Epic Records/Freebandz/A1) (Vinnie Hobbs of VHPost)

Young Thug – “Wyclef Jean” (300 Entertainment/Atlantic Records) (Ryan Staake & Eric Degliomini)

Lorde – “Green Light” (Republic Records) (Nate Gross of Exile Edit)

The Chainsmokers ft. Halsey – “Closer” (Disruptor Records/Columbia Records) (Jennifer Kennedy)

The Weeknd – “Reminder” (XO/Republic Records) (Red Barbaza)

 

 

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Crane bank saga: We don’t sanction charges on a matter that hasn’t been investigated by police-DPP

DPP Justice Mike Chibita

The office of the Directorate of Public Prosecution has said it hasn’t sanctioned charges against Crane bank shareholder Sudhir Ruparelia.

The DPP’s head of the Public Relations and International Cooperation Department, Ms Jane Akuo Kajuga said that despite the prosecution agency receiving a complaint from Bank of Uganda on the matter, it is the mandate of police to investigate and sanction charges upon which DPP can act.  However, Ms Kajuga reaffirmed that their office is still studying the compliant by BoU.

DPP’s clarification on the matter could ease the tension which is building between the two parties and also affecting the business interests of entrepreneur Sudhir. Earlier speculation was high when it was alleged that government had sanctioned the take over some of Sudhir’s property but this too was dismissed by Tourism Minister Prof. Ephraim Kamuntu.

BoU lodged a case at the High Court against Sudhir for allegedly tapping money from Crane.The Central Bank wants Sudhir compelled to return Shs 397billion, which he is accused to have illegally extracted from Crane Bank, as well as the bank’s land titles that he transferred to his company Meera.

However as the DPP came out, this website learnt that properties worth about six hundred billion shillings (Shs600bn) deposited as security in the now-defunct Crane Bank by dozens of customers who defaulted on loans is majorly responsible for tycoon Sudhir Ruparelia’s current woes, sources have said.

Speaking to the EagleOnline on condition of anonymity, the source said the Shs600bn was written off as ‘bad debt’ but that some senior officials in the Central Bank’s Supervision Directorate that is under Ms. Justin Bagyenda have an interest in the money for personal gain, despite efforts by the former owners of Crane Bank to prove that the securities deposited by loan defaulters were of a higher pecuniary value, and could be sold to offset any debt.

 

 

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Zari gave expensive Ivan Semwanga’s car to Diamond Platnumz – in-laws

Zari

Barely three months since Ivan Ssemwanga’s death, Zari Hassan has sold off almost everything left behind by her late ex-husband, Ivan Ssemwanga.

According to her inlaws, she has already sold off two of the expensive cars left behind; a Lamborghini and BMW X6 while she has given the Range Rover Sport to her current husband, Tanzanian musician Diamond Platnumz.

Muyanja Lawrence also known as King Lawrence, a cousin to the late says that it’s Diamond Platnumz who has been cruising the vehicle. Sadly, Zari sold off the vehicles without consulting the others three members who were assigned to manage Ssemwanga’s estate.
The other three members include King Lawrence, Ritah Ssemwanga (sister) and George Ssemwanga Pinto (elder brother).

These informed their uncle, Herbert Luyinda about the ongoing conflict among the managers of the estate and as you read this, Luyinda is in South Africa. He is scheduled to chair a crisis meeting today at Semwanga’s home in South Africa.

Meanwhile, Zari admits she sold off two of Semwanga’s cars but defends the decision, saying she wanted to raise money to pay off debts left behind by the late.

As for the Range Rover which is allegedly being driven by Diamond Platnumz, she says she “hid” it to prevent it from being impounded over taxes.

Among the properties that were left behind were the expensive cars, two houses in Sandton and Pretoria respectively and schools that include Brooklyn College also located in South Africa.

 

 

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Kidega to grace the 2017 UPL Awards

Dan Kidega

The Azam Uganda Premier League Awards 2017 edition will be presided over by Dan F. Kidega, the Speaker of the East African Legislative Assembly.

According to the Uganda Premier League (UPL) chairman, Arinaitwe Rugyendo, Dan Fred Kidega will be the guest of honour to grace the crowning night as the chief guest.

The best player of the season to be chosen from KCCA’s top scorer Geoffrey Sserunkuuma, SC Villa’s Emmanuel Okwi and Muhammad Shabaan of Onduparaka will walk away with a price of a brand new Subaru Forester this evening.

The event will be at Imperial Royale Hotel in Kampala to reward the best performers from the 2016/2017 season in various categories starting at 6pm.

The First Lady, Janet Museveni was the chief guest during last year’s Uganda Premier League awards that took place at Serena Hotel, Kampala.

Joseph Ochaya, Miya Farouk, Robert Ssentogo and Brian Umony are the past winners of the top accolade.

 

 

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KCCA grilled over Shs8b NSSF monies

KCCA ED, Musis whose authority hasn't remitted workers savings to NSSF.

Officials at Kampala Capital City Authority (KCCA) were this morning put to task to explain why they have been deducting monies on staff salaries for NSSF, yet haven’t ben remitting the monies to the Fund.

Led by Deputy Executive Director, Sam Serunkuuma, the officials were this morning appearing before the Parliament Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) to respond to audit queries raised in the 2014/2015 Audit report.

This follows concerns raised by the Auditor General, John Muwanga who revealed that the Authority hasn’t been remitting staff savings to NSSF, with the debt hitting Shs1.47 billion.

Richard Lule, Director Administration and Human Resource told the Committee that the arrears accrued as a result of misinterpreting the NSSF Act on whether political heads, revenue officers, enforcement officers and casual workers were eligible to remit money to NSSF.Lule however assured the legislators that the monies have since been cleared, following the harmonization of the law.

However, his explanation fell on deaf ears, with MPs; Moses Kasibante (Lubaga North) and Michael Tusiime (Mbarara Municipality) were quick to raise questions on where the authority got the money to hurriedly remit the money to NSSF yet it has never been budgeted for.

KCCA’s Lule informed the committee that the funds had been availed in the subsequent budget and the five per cent that was meant to be paid by staff had been recovered from the employees.

However, it didn’t take long before Lule’s lies were laid bare when Tusiime tabled evidence before the committee that indicated that NSSF is demanding Shs7 billion from KCCA. This prompted the committee to put Lule on oath.

Having been pushed to the corner, Lule confessed his sins revealing that although KCCA paid the monies, the fund ordered the authority to pay the fine as a result of delaying to remit the funds in time.

It was then that Serunkuuma chipped in to save face, pledging to remit all outstanding arrears to NSSF by end of December 2017.

 

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US-based Ugandans ‘export’ rigging to the UNAA presidential elections

FIDDLING WITH ELECTIONS? Incumbent UNAA president Monday Atigo

“Uganda remains Uganda no matter where you find it!!!” one Muzeyi Vicent remarked about the upcoming Ugandan North American Association – UNAA presidential elections. This is after one of the candidates Daniel Kavuma suspended his campaigns citing irregularities, allegedly occasioned by the UNAA Electoral Commission and incumbent association president Monday Atigo.

“After receiving contradictory information from the UNAA Electoral Commission and consultation with my team and some supporters, I have made the decision to suspend my campaign for UNAA President immediately,” Kavuma announced yesterday.

“I will not legitimize a fraudulent election process unless we return to the regulations that were agreed upon at the beginning of the campaign,” he added.

Kavuma accuses the UNAA EC chairman Franco Wantsala of arriving at a decision to eliminate absentee voting just 30 days to the Election Day without consulting the concerned stakeholders, arguing that the decision was only intended to benefit his opponent.

“Some members of the UNAA EC are saying they were not present when such a vote was conducted and one member is in Uganda. Who is making the decisions in the UNAA EC? Many questions and not enough answers. This is not a sign of a free and fair election.”

Some Ugandans in the US supported Kavuma’s move. One such person is Herman Mawanda.

“The UNAA offices are virtual hence operated in “absentia”. The communication was done via email in “absentia” payments for membership and other fees have always been done via online in “absentia” The many from Uganda who have always wished to attend the UNAA conventions have paid for registration fees in. “Absentia” recently we discovered that the President was lobbying for funding at a restaurant at Twegaite by simply swiping the card meaning the emoney was applied in “absentia” of liquid cash. What is so complicated with members voting for their President in “absentia” when campaigns have also been done in “absentia” via social media” moreover the electoral commission indeed requested the candidates to present their campaign videos, another “absentia” technique,” Mawanda wondered.

Son Muhwezi: When a Ugandan lizard goes to America, it doesn’t turn into a crocodile. Ugandans remain Ugandans wherever they go.

Reacting to his opponent, the incumbent president Monday Atigo laughed off the allegations, saying: “In the famous words of former first lady Michelle Obama, ‘When they go low, we go high’. Leadership is more than cheap shots to gain political mileage. UNAA has travelled a long journey with substantial gains in the last 4 years. We simply have to continue building onto what we have started.”

Meanwhile, Kavuma’s protest has prompted Wantsala to come up with a hasty statement on the matter.

“Dear Members of UNAA Community, many of you have reached out to me reacting to the Press Release regarding our voting process that was sent out from UNAA Electoral Commission last night. The UNAAEC position is that this document was still being reviewed and pending input from all stakeholders including candidates before it could be shared with the public. It’s easy to say that this document was sent out prematurely, and as the chairman of the UNAAEC, I apologize for any inconveniences it may have caused,” reads part of the statement issued yesterday.

The UNAA presidential elections are to be held during this year’s UNAA convention scheduled to take place between September 1-5 in Miami.

Founded in 1988, UNAA is the oldest and largest Ugandan diaspora organization. But following a conflict within the organization, a faction broke away to form a parallel organization, the UNAA Causes.

 

 

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AEON and VIBES: Taking the Ugandan nightlife by storm

Revellers at the Aeon and Vibes event

Uganda this year upstaged a number of countries to become one of the best tourist destinations in Africa. Indeed, this came as no surprise since Ugandans were also voted as the ‘friendliest’ people in the world.

This, coupled with the country’s various scenic destinations and rich-diverse heritage, made the party scene a vibrant and ever eventful affair that caters for not only the locals but international community as well.

Nightlife in Uganda takes on various forms and a visitor is never short of options in Kampala’s after-hours. However, as a third world country, there is little to be excited about the fluctuating shilling, an antidote for what one would call a good time in various hotspots.

Oftentimes, Kampala plays host to local and international artistes who put up live performances at events/gigs such as Blankets and Wine or Nyege Nyege but one wonders what is in it for the average Ugandan.

 

This is a puzzle David Kakuba, 25 and Brian Muhumuza, 29 sought to solve while trying to analyse the entertainment industry, in which they both hold a considerable stake under Company brands: Optimus Events and Valhala Bar, respectively. This year the Vibes Warehouse event was launched on April 7 in Industrial Area and followed shortly by the electronic and high energy AEON-Smirnoff party at The Square-Industrial area on July 14, 2017.

Interestingly, unlike most creative gigs on Kampala’s contemporary social scene with it’s quick-to-bore crowd; both gigs were a success despite the traditional courtesy and marker of Ugandan youth empowerment.

The Aeon and Vibes events bring back a classical regeneration of both the arts and culture intertwined to provide the Ugandan with an atmosphere of a modern day fraternity that mainly entails the idea: ‘Party as you learn’.

From highly sought after discjockeys (DJs) to a number of high-end designers including Thandi and Elijah McQueen who showcased a number of their various works in jewelry and clothing lines.

An open art gala that showcased a number of unique, beautifully-imagined and moving pieces of art work that transported many and set a sophisticated tone that was quickly relieved by a beer or glass of vino. Poetry and music took centre stage as different artistes took to the stage to share their refined words and rhythm. Despite an Al-Fresco setting and minimal seats, the energy of guests and well-wishers was at maximum as they readily offered a heap of praises, dance moves and ululations to the infectious tunes the Deejays performed throughout the night.

Despite the electric charge and high anticipation prior to the night’s events, it was the reasonable charges and fair pricings that were set to make this event a success. A concept started by two companies: Valhala Bar and Optimus Events together with Arena Sports bar and Smirnoff, all aiming to provide Ugandans with the most conducive environment Kampala has to offer at reasonable price.

“Aeon is a house, electronic event and the whole concept rotates around energetic music with deejays like Aleczandah, but if you like upcoming rappers, spoken word and Deejays like Naselow we also cater for that in events like Vibes which we launched earlier this year. Then we also deal in fashion and clothes, we look to give Ugandan designers a platform that is cheap and at the same time effective to promote their works and then last but not least we involve art through film: infact we are going to be showing short films done locally and we’ll see how we develop from that.” Kakuba is the CEO and founder of Dash Investments, an Umbrella for Optimus Events also renowned for its good job in organizing a number of top-notch events in and around Kampala.

When contacted for feedback on the Aeon-Smirnoff party, a number of guests suggested it be made a bi-annual event since it was more affordable and entertaining than most events hosted during the year.

 

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Oil activities to make up 4 per cent of Uganda’s economy – IMF

IMF Mission Chief for Uganda Axel Schimmelpfennig

Uganda’s oil reserves may account for as much as four per cent of its economy annually in coming years if managed well, the International Monetary Fund’s (IMF) country chief says.
IMF Mission Chief for Uganda Axel Schimmelpfennig writes in a blog post that the country also needs some strategic infrastructure investment and better debt management.
Uganda’s economy has taken a hit over the past decade — particularly on a per capita basis — but is recovering.
According to IMF figures, growth was around 4.7 per cent in 2016, currently above average for Africa. That was up from just 2.6 per cent in 2011, but still well off its 10.4 per cent high as the global financial crisis broke.
The IMF projects gross domestic product will grow at 5.7 per cent in 2018, but Schimmelpfennig sees greater growth beyond.
“Drought in the Horn of Africa, regional conflict, and slow credit growth have contributed to (the decline), with per capita growth falling to half a per cent from an average of 5 per cent for the past 20 years,” he said in his blog post.
Per capita GDP — a closer measure of ordinary Ugandan’s conditions — has plunged in the past few years along with weakness in key exports such as tea, coffee and some minerals.
The shilling, Uganda’s currency, has also weakened, in particular during the run up to the February 2016 presidential election.
But with oil, all this could change.
“In our estimates the revenues could range on an annual basis from about half a per cent GDP initially to about 4 per cent at peak production, he says. “The challenge that many oil producers face is to manage this well.”
Uganda discovered commercial hydrocarbon deposits in the Albertine rift basin that straddles its border with the Democratic Republic of Congo in 2006. It estimates the deposits hold around 6.5 billion barrels of oil as well as commercial deposits of natural gas.
Production is due to start in 2020, after a number of years delay. An export pipeline is being developed and work is at the early stages of field development.
Schimmelpfennig said that if the government starts production as planned it could ‘reap the benefits’ for almost 30 years.

 

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BoU CBR cuts see less impact on commercial banks credit

BoU Governor Prof Emmanuel Tumusiime Mutebile.

The Bank of Uganda’s policy to lower the Central Bank Rate (CBR) of recent has not had a significant impact on commercial bank lending to the private sector, the Uganda Economic Update published this week by the World Bank, states.

The Uganda Economic Update discusses general status of the economy, with the latest, the Ninth Edition majorly focusing on how the government of Uganda can nurture public-private partnerships to address Uganda’s infrastructure deficit estimated at US$1.4 billion.
The Bank of Uganda (BOU), cut the CBR to 10 percent in June 2017, compared to 17 percent recorded in the year earlier. That reduction was meant to push commercial banks to significantly cut their prime lending rates so as to encourage the private sector borrow for production.

However, commercial banks, according to economic analysts at the World Bank, have been reducing their lending rates by only a very limited degree, with average rates declining from 23.5 percent in June 2016 to 23.1 percent in February 2017, before they were reduced to 20.5 percent in April 2017. This means, the report says, commercial bank credit in Uganda remains expensive on the side of most private sector players.

It is only Stanbic Bank, the largest in the country by capitalisation and assets, that has announced it will charge 18 percent interest on its loans starting the coming month, which is just days away. Uganda has over 20 commercial banks, many of them foreign-owned.
“The limited financial depth means that these policy actions have had only a limited impact on economic activity, with the proportion of the private sector having access to commercial loans remaining low,” the Update states in part.

The report recognises that commercial banks have been slow to reduce their lending rates for fear of foreign exchange risks, only providing most loans to transport, communications, business services, personal and household sectors.
Yet the value of credit provided to building, mortgage, construction, real estate and manufacturing sectors have continued to shrink in the financial year 2016/17, compared to the previous year.

“Commercial banks have tightened lending conditions due to the high level of volatility,” continues the report, adding that most borrowers in Uganda take loans in Ugandan currency, with the dollar dominated credit only accounting for 44 percent of the total value by April 2017.

The Update states that the increase in the level of non-performing assets (NPAs) is also responsible for the slower credit and the declining profitability of the banking sector, despite the high level of capitalisation.

The report adds that the proportion of NPAs increased to an average of 4.4 percent in financial year 2015/16 and that by December 2016, the figure had reached 10.5 percent, before decking to 6.3 percent in March 2017. The report gives high cost of credit, exchange rate volatility and government delay to pay suppliers, as some of the factors responsible for the NPAs.

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New twist in Crane Bank, BoU saga as Shs600bn properties issue surfaces

Sudhir Ruparelia with his wife Joystna after winning an award

Properties worth about six hundred billion shillings (Shs600bn) deposited as security in the now-defunct Crane Bank by dozens of customers who defaulted on loans is majorly responsible for tycoon Sudhir Ruparelia’s current woes, sources have said.

Speaking to the EagleOnline on condition of anonymity, the source said the Shs600bn was written off as ‘bad debt’ but that some senior officials in the Central Bank’s Supervision Directorate that is under Ms. Justin Bagyenda have an interest in the money for personal gain, despite efforts by the former owners of Crane Bank to prove that the securities deposited by loan defaulters were of a higher pecuniary value, and could be sold to offset any debt.

“The people who took loans from Crane Bank including several high-profile politicians and businessmen in Kampala had deposited securities with pecuniary values far above the loans advanced to them, which could be sold to raise money to clear any debt,” the source said.

“Why did the Bank of Uganda rush to court to try and recover about Shs400bn, yet the value of the properties deposited (about Shs600bn) was far above what it is seeking,” the source wondered.

Also, according to the source, despite several attempts by the owners of the Crane Bank, the BoU had failed to avail them with the results from the ‘forensic audit’ carried out after the Crane Bank was closed last year.

Recently, the BoU paid Shs398 million to the Uganda Revenue Authority (URA) as court filing fees for a suit seeking to recover US$93.8 million and Shs60.3 billion allegedly taken by Mr. Ruparelia and Meera Investments from Crane Bank.

In that respect the BoU has employed the services of MMAKS Advocates and AF Mpanga Advocates to pursue the case on behalf of Crane Bank that was taken over by the Dfcu Group.

And, contacted for comment, the BoU Director of Communication Christine Alupo told the EagleOnline on phone that she was not at liberty to discuss the case as it was before court.

“For now I have no comment; as you are aware there is a court process and out of respect for that process we decided not to comment about the case till it is settled,” the BoU Director of Communication Christine Alupo told the EagleOnline on phone.

And, in an SMS Ms. Alupo added: ‘We cannot comment on issues currently before court. There are a lot of unfounded and diversionary theories being circulated around. Let’s await the Court process and the facts as they will be ascertained’.

She however, said that the BoU had encountered social media posts aimed at tarnishing the image of some BOU senior staff, mostly those in the Bank Supervision department.

“That said (about the official restraint on case by BoU) there is a lot of speculation, and it is diversionary; there are a lot of lies being told about staff,” Ms. Alupo said.

Earlier, a top commercial lawyer in the city, also speaking on condition of anonymity, had accused the BoU of “taking the case to the mainstream media,” in apparent reference to recent publications by The New Vision over the issue, and wondered: “why can’t they wait for the case to be heard on its merit?”

 

 

 

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