The Crane Bank Branch in Arua. Photo by Okello
By Felix Okello
Bank of Uganda has taken over operations of Crane Bank this afternoon.
In a press release, Bank of Uganda Governor, Tumusiime Mutebile, said the bank was under-capitalised and that the take over was because it pose systemic risk to the stability of financial systems and that of continuity of Crane Bank’s activities.
“This is to inform you that Bank of Uganda has, with effect from today 20th 2016, pursuant to Sections 87 (3), 88 (1)(a) & (b) of the Financial Institutions Act 2004, taken over management of Crane Bank Ltd.
Bank of Uganda Governor Tumusiime Mutebile. Courtesy photo
Before closure, the police had been ordered to guard the premises countrywide. In Arua, police detectives and Field force unit policemen have been deployed. The Bank in Arua serves customers from the eight districts.
Mutebile however assured the customers that their money would be safe and that normal operations would continue at the bank.
Bank of Uganda also suspended top managers of Crane Bank. “You are accordingly suspended from your position as Acting Managing Director and you are required to make a formal handover of your responsibilities to the Bank of Uganda Statutory Manager, Mr Edward Katimbo Mugwanya,” Mutebile said in the press release.
The Proprietor of Crane Bank, Mr Sudhir Ruparelia, said last week that they had found a partner to buy shares for managing the bank. He said it was a normal business procedure to sell of some of the shares for the Bank.
Sudhir Ruparelia, the Proprietor of Crane Bank. Courtesy photo
Recently, Bank of Uganda had denied sale of Crane Bank that was faced with financial difficulties. Some of the customers at Arua Branch have had their accounts closed since they did not see any future after information had spread about its closure.