Deputy Governor Bank of Uganda Louis Kasekende together with former Director supervision Justine Bagyenda have been placed into spotlight for disappearing with shs 600bn bad book belonging to former Crane bank.
This Bad Book belonged to Former Share Holders of Crane Bank.
Kasekende, Jimmy Mugerwa the Managing director Tallow oil Uganda, Bagyenda also connived with Benedict Ssekabira the director commercial banking bank of Uganda.
It should be noted that Crane bank bad book was also a point of contention in the auditor general’s report as he noted that he was unable to understand how a book of over Ugx 570 billion was given to DFCU at only Ugx 200 bn.
In a shocking Letter to DFCU outgoing MD Juma Kisaame, titled Compliance Accommodations, Bagyenda exhorted him to treat the bad book clandestinely.
Bagyenda said that any acquired performing loans and advances reflected on Dfcu’s balance sheet at integration will be deemed and treated as new to Dfcu and hence eligible for restructuring for purposes of the financial Institutions (credit classification and provisioning requirement.
She then added that all fully provisioned loans and advances acquired by Dfcu will be ring-fenced and managed separately and would not be part of Dfcu’s loan portfolio for reporting purposes until rehabilitated in conformity with the Financial Institution Act.
The revelation is a slap on the face of Justine Bagyenda, his then immediate supervisor, Louis Kasekende, Dfcu’s embattled MD, Juma Kisaame and a chain of other fraudsters.
Bagyenda’s order continues to add on believable series that the disguised sale of Crane bank was recklessly ill-motivated.