On Friday, February 11, a new befell the country when the financial sector received another good news, as one of their own, Crane bank has been reverted back to its shareholders who are Sudhir and Meera investment after a protracted long legal battle that has made the regulator, Bank of Uganda to puked it.
The sad news is that other banks which became prone to poor decision-making and incompetence like the National Bank of Commerce, Teffe bank, Green land bank, among others can not resurrect to serve Ugandans.
According to Auditor general report and Parliament Committee on commission, Statutory Authorities, and State Enterprises,(COSASE) agreed that BoU did not have a detailed plan for revival and recommended that next time the regulator should first exhaust plans of reviving the bank before costing many breadwinners their jobs. About more than 500 youths lost their jobs at Crane bank alone which is too devastating!!
According to a report presented to parliament by Bugweri county MP, Hon. Abdu Katuntu, by the time the bank was closed, its liquidity had stabilized and therefore there was no need to hasten the Receivership and then liquidation.
BENEFITS
The Supreme court appeal ruling is very historical for the banking sector because BoU will be using due diligence and extra care before winding down business and the regulator will stop using sections 99 (1) and (2) of the financial institutions Act,2004 to victimize them again. So the industry should appreciate Crane bank for the struggle. I believe even the powers of the governor will be checked.
This ruling is a good signal to all investors that their investment can be safe because the judicial system is there in case of any malpractice. Youths should now brace themselves and start to apply for jobs in case the bank is reopened.
All the private sector borrowers who used to access affordable and first service should remain positive to transact again.
This is a clear win for all Ugandans.
Ben Ssebuguzi is an Entrepreneur, economist and Secretary General of Uganda poor youth movement.
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