The Independent Uganda: You get the Truth we Pay the Price
“Please note that today May 29, 2017, at 10:00 Am, I discussed with Governor matters relating to Crane Bank Limited in receivership,” reads a note from Bagyenda, “Governor guided that his instructions on rotation of lawyers did not include Crane Bank matters that MMAKS Advocates are handling. Therefore, MMAKS Advocates are cleared by Governor to continue handling Crane Bank matters.” She didn’t copy Governor Mutebile in this note.
It appeared strange to some that the same Governor who had called for rotation of lawyers largely because of MMAKS was now saying that the firm is maintained.
These details have reignited debate about Bagyenda’s links to the lawyers in question. Bagyenda is said to be very close to Masembe, the lead lawyer at MMAKS.
A linchpin in Uganda’s banking sector, on top of being the central bank’s main external lawyer for years, Masembe is the board chairman of NC Bank, and a business partner of Attorney General, William Byaruhanga with whom he co-owns prime real estate like Rwenzori Courts and Bugolobi’s Village Mall.
Masembe was also a lawyer for tycoon Sudhir. When the tycoon got in trouble with BoU, however, Masembe led the team of lawyers that handled the entire process of taking over his bank and eventually selling it to DFCU. Throughout the process, he worked closely with David Mpanga, the lead lawyer at Bowmans.
In January 2017, forinstance, Sudhir’s representatives KakemboKatende and AzimThorani attended a meeting at the offices of MMAKS Advocates together with MasembeKanyerezi and David Mpanga.
The purpose of the meeting was to share a PWC forensic report indicating that Sudhir had extracted US$ 80 million from Crane Bank.
At the said meeting, Masembe and Mpanga declined to share the PWC forensic report but instead rang the PWC auditor who allegedly made the allegation, put him on speakerphone and allowed only a few questions.
The report would later be the heart of the central banks’ case against Sudhir.
The findings resulted into the three main charges against Sudhir; first that he on several occasions over many years fraudulently took money totaling about Shs340 billion from his own bank; two, that in 2013, he fraudulently shifted ownership of the 48 bank branches from his bank to another company he owned called Meera Investments and then proceeded to charge his own bank very high rent, and three that he failed to remit Shs52 billion to NSSF as his workers’ compulsory savings.
Sudhir denies all these charges and was able to get court to direct both Mpanga and Masembe to get off the case on grounds of conflict of interest. The lawyers have challenged this ruling in court.
Sudhir, who blames his fate partly on the two lawyers, petitioned court arguing that the two lawyers had conflict of interest.
Sudhirsays that throughout the entire process, the two lawyers were keen to frustrate efforts to settle the matter out of court.
On July 6, forinstance, Masembewas part of the team that met President Museveni at State House Entebbe. Sudhir had sought the president’s intervention to save himself after it became clear that BoU and its lawyers were keen to slap criminal charges on him. At the meeting, the president encouraged the two parties to resolve the issues amicably.
However, four days later, Sudhir received a letter from the lawyers.
“The above letter is required to be signed off in a consent judgment to be filed in the Commercial Division of the High Court no later than Wednesday 12th July to forestall the filing of a criminal complaint which we are currently instructed to file on or by Thursday 13th July 2017,” reads the letter in part.
Sudhir had entered an agreement with the central bank, in which he had agreed to pay some money to the bank and get some of his properties back. He had already paid some US$ 15 million.
In return, the central bank would return some of his properties they had confiscated and they also agreed not to slap criminal charges against him.
However, in a turn of events, the lawyers were now threatening him. The tycoon later said the lawyers’ intimidation and humiliation was tantamount to abuse of court process.
