Six years after the closure of the same commercial bank, the Bank of Uganda (BoU) is looking to employ an independent audit company to conduct a complete audit on the present condition of affairs of the now-defunct Crane Bank.According to an advertisement in one of the local newspapers, BoU is currently accepting bids from interested audit companies to conduct the audit. The bidding period will end on December 2.
"The Bank of Uganda seeks sealed offers from qualified bidders for the procurement of an audit firm to perform a thorough audit on the condition of affairs of the defunct M/S Crane Bank Limited," the advertising said in part.
"The bid document may be examined online under the procurement page on the Bank of Uganda website will be provided to interested bidders following payment of $50 through funds transfer," the bid advertising reads.
It is unclear why the Central Bank is interested in reviewing a defunct financial firm whose assets and liabilities were transferred to DFCU Bank six years ago.
BACKGROUND
Crane Bank Limited, owned by local businessman Dr Sudhir Ruparelia, was put under statutory administration on October 20, 2016, for being undercapitalized, in line with Financial Institutions Act Sections 87(3) and 88(1).
The bank was put into receivership under Section 94 of the Financial Institutions Act, and part of its assets and liabilities were ultimately sold to DFCU Bank.Crane Bank, which was in receivership at the time, filed a commercial complaint in the High Court Commercial Division in June 2017 demanding at least Sh397 billion from the bank's largest shareholder, Mr Sudhir Ruparelia.
Sudhir was accused of misappropriating money as the bank director and shareholder of his Meera Investment Company, according to the complaint.On August 29, 2019, then-presiding judge David Wangutusi rejected the multibillion-dollar business dispute, ruling that when Crane Bank was placed in receivership, it lost its legal ability to sue or be sued by Mr Ruparelia.
Crane Bank filed an appeal with the Court of Appeal after being dissatisfied with the Commercial Court judgement and decision, which was also rejected for the same grounds as the lower court.
This, however, did not prevent the Central Bank from seeking justice from the Supreme Court (the highest apex of the country's court system), but it withdrew the appeal before the court could hear it, prompting the Supreme Court to rule in Sudhir's favour and order Crane Bank to be reverted to its shareholders.
Sudhir was struck a major setback in October when the London High Court in England decided in favour of dfcu Bank, its directors, and shareholders in a lawsuit launched against them by the collapsed Crane Bank and six of its directors, demanding Shs816 billion (about 170 million pounds).
After a month, the Bank of Uganda is now looking for an impartial audit company to provide an informed condition of affairs for the defunct bank.
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