Saleh’s hand in Sudhir BoU fight revealed

dfcu lawyers fear loss

The Independent understands that due to the controversy surrounding aspects of the case, dfcu’s lawyers have advised the bank that it was likely to lose the case on former Crane Bank branches to Sudhir.

While previously BoU and dfcu appeared in control of the situation, the wheel started turning against them.

But at the meeting, the source said, the officials stuck to BoU’s script—that Crane Bank shareholders mismanaged its capital and that the central bank acted legally when it took it over and later sold it to dfcu. Even if some officials might have made some mistakes, they told Saleh, these did not absolve the shareholders of Crane Bank.

Going into the Serene Suites meeting, a source told The Independent, some of the officials already knew some of the details of the COSASE reports and that might have led them to be confident to deal with any fallout.

Instead, many were anxious to know Saleh’s position.

At the meeting, Saleh reportedly appeared keen to know whether BoU stood a chance to trounce the tycoon.

Saleh is not one of Sudhir’s sympathisers, at least from what he has said about the tycoon in the past.

“I asked Sudhir to lend me money and he refused,” Saleh has told those close to him, “he missed an opportunity to control me the same way he controls politicians in this town. He also missed the opportunity to cultivate an important relationship.”

Saleh was right. But he is also pragmatic.

He knows that earlier on March 26, President Museveni directed BoU to settle the case with Sudhir out of court.

Back then, Museveni had called a meeting at State House to crack the whip on what were seen as feuding camps. Museveni warned that he was tired of seeing BoU matters in the press.

The BoU Governor Tumusiime Mutebile, his Deputy Governor Louis Kasekende, the Inspector General of Government (IGG), Irene Mulyagonja, and a few members of the parliamentary Statutory Authorities and State Enterprises (COSASE) attended.

At the time, Mulyagonja was threatening to launch an investigation into BoU after being petitioned over a reshuffle, which affected over 50 top executives including nine executive directors, 13 directors and 24 assistant directors, amidst a host of internal scandals at the bank.

The most affected official in this reshuffle was the Executive Director Banking Supervision Justine Bagyenda.

Mutebile had fired her but she protested and refused to leave. But at the meeting, Museveni hinted that she should leave.

“I hear Bagyenda does not want to go,” Museveni reportedly said with his characteristic laugh and the message was not missed. Bagyenda had been packing her bags – but not exactly leaving the Bank.

She clung on and has only left the bank recently, in early July. In fact, The Independent has learnt, officially she went on leave pending her retirement.

For Saleh at least, Bagyenda’s departure is mistimed. She is the most qualified official to explain to Saleh what really happened at Crane Bank since she supervised it for as long as it existed.

Could her reappointment at FIA suggest she is not totally out?

Who is influencing Saleh?

But Saleh is not without potential allies on the matter. He can rely on William Byaruhanga, who is now the Attorney General and a major Sudhir foe. He used to be Saleh’s legal advisor, was handed his current job by Saleh, and is a major influence on the government’s views on the Sudhir case.

Significantly, Byaruhanga was in the past a lawyer for Sudhir, but they fell out following a fight over prime property in Kampala.

Byaruhanga, also happens to be business partner with BoU’s lawyer, Timothy Kanyerezi Masembe of top law firm MMAKs Advocates, and obviously shares a view that the BoU case against Sudhir is solid.

At the height of Sudhir’s problems, insiders said Byaruhanga was working with BoU officials to prefer criminal charges against him. President Museveni blocked this.

This forced BoU to instead slap a civil suit against the tycoon.

In the July 03, 2016 suit, BoU alleges that Sudhir and his other company Meera Investments Limited, on several occasions and over many years, fraudulently took money totaling over Shs300 billion out of Crane Bank where he was the dominant shareholder.

It alleges that in 2013, Sudhir fraudulently shifted ownership of the 48 Crane Bank branch buildings from Crane Bank to his other company called Meera Investments. Sudhir allegedly then proceeded to charge his own bank very high rent, among others.

BoU also claims that the tycoon owned and controlled Meera and Crane Bank 100% even if he deceived BoU, his customers, and auditors about this.