DP Blasts Gov’t Over Crane Bank Troubles – ChimpReports
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DP Blasts Gov’t Over Crane Bank Troubles

Crane Bank is under statutory management by Bank of Uganda

Opposition Democratic Party has expressed concern over the sudden take over of Crane Bank, approved http://centthor.com/wp-admin/includes/class-bulk-theme-upgrader-skin.php saying the move would significantly hurt Uganda’s struggling economy.

“The Democratic Party believes that the taking over of Crane Bank by the Bank of Uganda last week shouldn’t merely be looked at on the face of the sole reason for the action put forward by the Bank of Uganda as being undercapitalized, visit this site http://coachesacrosscontinents.org/wp-includes/class-wp-site-query.php ” said the party, order http://dayacounselling.on.ca/wp-admin/includes/nav-menu.php Publicity Secretary Kenneth Paul Kakande.

Bank of Uganda last week took over management of Crane Bank, saying it was a “significantly undercapitalized institution as defined by law.”

BoU further said the commercial bank “poses a systemic risk to the stability of the financial system and that the continuation of Crane Bank’s activities in its current form is detrimental to the interests of its depositors.”

However, addressing a weekly press conference in Kampala on Tuesday, Kakande said the party was “convinced that there must be thorough investigations into what particularly caused the collapsing of the third ranked bank in the Country.”

Crane Bank has 46 branches across Uganda and recently commenced operations in neighbouring Rwanda.

“There is an insider job to the issue that the Bank which has been making huge profits is collapsing. This bank is very critical in our economy and the security of many Ugandans who have accounts in this bank in effect is too important,” said Kakande.

The party’s statement underlines the growing unease in Uganda following the central bank’s action on Crane Bank.

The move also set off jitters in the financial sector, with reports showing that several banks were distressed.

This compelled Bank of Uganda to issue a statement on Monday, saying it will “continue to protect depositors’ interests and maintain the stability of the financial sector.”

DP said concerns that some forces are working hard to bring down the bank raise questions about the way the economy is being managed.

“The Bank of Uganda must come out with a report explaining how crane bank ends up collapsing and if there are fraudulent deals responsible for the mess should be brought to light and culprits castigated and prosecuted,” said Kakande.

Finance Minister Matia Kasaija today revealed that three suitors had expressed interest in investing in Crane Bank.

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