BoU Yet to Recover UGX219 Billion Linked to Crane Bank Crisis

The Bank of Uganda (BoU) had yet to recover Shs219 billion linked to its intervention in the defunct Crane Bank as of June 30, 2025, according to financial statements reviewed by Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE).

Muwada Nkunyingi, the Kyadondo East MP and COSASE chairperson, said the committee would question BoU officials, the Finance Minister and Crane Bank shareholders on November 9, 2026, to establish the status of the outstanding amount and who is responsible for settling it.

The committee is examining the money BoU injected into Crane Bank before transferring some of its assets and liabilities to Dfcu Bank in January 2017. The central bank subsequently received Shs200 billion from Dfcu Bank, but its financial statements still recorded about Shs219 billion in outstanding receivables as of June 2025.

Nkunyingi said the committee wanted BoU and the bank’s former shareholders to explain why the outstanding amount had not been recovered.

“We want to learn from Crane Bank what has occasioned the non-payment, or what is the state of affairs as of now,” Nkunyingi said.

Julius Nakiyi, the Budadiri East MP assigned to scrutinise BoU’s financial statements, told the committee that the central bank had provided financial support to Crane Bank to meet its obligations. 

The expectation was that the money would be recovered through the subsequent transaction and, where applicable, from the bank’s shareholders. Nakiyi said the 200 billion shillings received from Dfcu Bank had not cleared the amount recorded as outstanding.

“The assumption was that Crane Bank’s shareholders were supposed to pay for its creditors, and they were unable to do that, so Crane Bank had to pay on their behalf,” Nakiyi said.

The committee intends to establish the nature of the outstanding obligation, the amounts recoverable from the different parties and whether any further payments have been made.

The meeting with BoU had initially been scheduled for an earlier date but was postponed after the central bank informed the committee that Governor Michael Atingi-Ego was out of the country.

Under the revised programme, COSASE is scheduled to meet BoU officials, representatives of Haba Group and the Finance Minister from 8 a.m. to midday to discuss a separate 140 billion shillings issue and related matters.

The committee is then expected to engage BoU, the minister and Crane Bank shareholders, including businessman Sudhir Ruparelia, on the outstanding receivables and other matters arising from Crane Bank’s closure.

Crane Bank was among Uganda’s largest commercial banks before BoU took over its management on October 20, 2016, citing serious financial difficulties.

The bank was subsequently placed under receivership. In January 2017, Dfcu Bank acquired specified assets and assumed certain liabilities, including customer deposits.

The transaction enabled customers to access their accounts through dfcu Bank. However, not all liabilities and claims associated with Crane Bank were transferred to the acquiring bank.

The intervention triggered several legal disputes involving BoU, Crane Bank’s former shareholders and Dfcu Bank.

BoU pursued allegations against Ruparelia relating to funds allegedly taken from Crane Bank. 

BoU lost at the High Court and Court of Appeal before withdrawing its final appeal to the Supreme Court in December 2021. 

The withdrawal ended the domestic proceedings without a substantive Supreme Court determination of the underlying allegations.

Separately, Crane Bank and its shareholders brought proceedings in England against Dfcu Bank and other parties over the transfer of Crane Bank’s assets. 

They allege that the assets were transferred at an undervalue through an improper arrangement. The claim is valued at more than £170 million.