Government of Uganda has come to the rescue of Crane Bank whose managers were recently suspeneded before it was taken over by Bank of Uganda.
Sources say government has injected about Shs200 billion into the bank whose management had failed to guarantee safety of its clients’ safety.
The source added that Crane Bank was on the list of proposed companies seeking for bail out by the government drawn by General Salim Saleh the brother to president Yoweri Museveni.
Early this week, finance minister Matia Kasaijja said suspended board chairman and proprietor of Crane Bank, Sudhir Ruparelia was told to inject more money in the bank to secure the money of Ugandans who have accounts there but he failed, hence the take takeover by Bank of Uganda.
According Kasaijja, the government had information that Crane Bank was not performing well and had many non performing loans.
“I don’t know what happened but the bank was doing well untill 2014 when its performance started declining. It had made profits of about Shs47.5 billion. I don’t know what happened after 2014,” the minister said on Tuesday during the Uganda Bankers’ Association breakfast meeting in Kampala.
Witnout giving specific examples, the minister said some people borrow money from banks, construct expensive mansions and in the end run to government for bail out.