BoU To Be Sued For Laxity In Regulating Crane Bank

BoU To Be Sued For Laxity In Regulating Crane Bank

A showdown of legal action in the commercial court is due to start as Bank of Uganda seeks to recover at least $93 million and 48 land titles from Sudhir Ruparelia’s Meera Investments, which it says were acquired fraudulently.

A third party, in the names of Derrick Nsereko, has also joined the legal fray by issuing Bank of Uganda a notice of intention to sue demanding to know how the Central Bank let the alleged fraud happen. The intention to sue was served to the office of the Bank of Uganda Governor by Kashillingi, Rugaba and associates, the law firm that represents Nsereko.

The notice which warned of an impending suit on the central bank was for the role the regulator had played or declined to play in the alleged fraudulent activities that cost Crane bank over Shs400 billion in revenue. Kashillingi says that the Bank has not yet responded to their notice but they intend to go ahead with the suit

The bank issued a statement on Thursday afternoon clarifying on the lawyers they had hired and the court filing fees issued to URA but did not mention the notice served to them.

The notice however sits strikingly close to details that NTV has obtained about a meeting at State house on Thursday between BOU officials, the President and Sudhir Ruparelia in which it is said that Sudhir asked that the Central Bank officials be held accountable for the fraudulent activities too.