DFCU Summoned Over Crane Bank’s Uncleared Debts

DFCU Summoned Over Crane Bank’s Uncleared Debts

The Commercial Court has summoned DFCU bank to file a defence within 15 days explaining why it has refused to pay-off debts that were incurred by the defunct Crane Bank.

This follows a suit filed by an advertising company; Premier Advertsing and media Ltd against DFCU bank, claiming it demanded 112 million shillings  from Crane Bank as at  the time  Bank of Uganda  transferred all its  assets and liabilities to  DFCU.

According to the company manager David Esiat, the said money arises out of an advertising contract that Crane Bank entered into with his company to market its services.

He says that however despite repeated demands and reminders, DFCU bank has refused to settle this debt which has occasioned loss to his business, which prompted him to seek court’s intervention.

Bank of Uganda transferred the assets of Crane Bank to DFCU on January 27th this year having taken the Bank under receivership in October 2016.

The Central Bank Governor Prof Emmanuel Mutebile said Crane Bank’s liabilities he said “grossly exceeded its assets” and that it was insolvent.