Cost of Crane Bank takeover hits Shs. 500Bn

Sudhir was particularly disturbed by Masembe, who was his lawyer for years, had severally represented him in court and advised him over some of the transactions BoU was implicating him over and had now switched sides.

Because of Masembe’s previous dealings with Sudhir, the tycoon’s lawyers claim that the Cental Bank’s entire case was filed in breach of the advocate client relationship.

Sudhir’s lawyers noted Mpanga and Masembe represented BOU and connived with some BOU officials to give DFCU a “sweetheart” deal and then they immediately crossed over and went to work for DFCU to collect money and fees on the same assets they had just transferred to DFCU.

To this day, Sudhir’s lawyers sayMMAKS Advocates and AF MPANGA (BOWMANS), continue to work for DFCU to collect money from Crane Bank loans they claimed were written off and uncollectable.

While Mpanga’sBowmans conducted a review on the non-performing portfolio for DFCU, court documents indicate that MMAKS is handling some 49 cases on former Crane Bank assets on behalf of DFCU.

It is on these grounds that court ordered Mpanga and Masembe off the case, which marked a major low point for BoU as far as the case is concerned. With this team off the case, BoU engaged Sebalu and Lule Advocates to represent the bank in a mediation process. Again here, Sudhir raised concerns that the new law firm had advised DFCU on the acquisition of Crane Bank, and that they too had a conflict of interest. The firm had also left the case.

But insiders say, the same firm recently notified Sudhir’s lawyers that going forward they would be representing Crane Bank after getting instructions from the central bank.

It remains to be seen how Sudhir will react to them and how court will respond. According to insiders, a lot of that will also depend on the outcome of continued efforts to settle the case out of court. While President Museveni last year directed that BoU settles the case out of court, The Independent understands that top leaders at the Bank still want to tussle it out in court. That will require even more money.