Business

DFCU Bank Summoned to Court Over Crane Bank Debts

DFCU took over Crane Bank in January last year

The Commercial Court has summoned DFCU bank to file its defense within 15 days over allegations that it refused to pay off debts that were incurred by Crane Bank, which it acquired early this year.

An application was filed in this court by Premier Advertising and Media Ltd, claiming that it was owed Shs. 112 million by DFCU.

The company says it provided advertising services to Crane Bank and had not been paid at the time Bank of Uganda transferred all the bank’s assets and liabilities to DFCU.

David Esiat, the company manager says this debt arises from an advertising contract which was between Crane Bank and his company to market its products and services.

He adds they have made several reminders to DFCU bank but it has not endeavored to settle this debt.

DFCU’s Head of marketing Jude Kasiime had not returned our requests for comments.

Bank of Uganda transferred the assets of Crane Bank to DFCU on January 27th this year having taken the Bank under receivership in October 2016.

The Central Bank Governor Prof Emmanuel Mutebile said Crane Bank’s liabilities he said “grossly exceeded its assets” and that it was insolvent.

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