Business

Mbabazi rushes to block sale of Crane bank

craFormer Go Forward presidential candidate, Amam Mbabazi, has through his lawyers Severino Twinoburyo and Mugisha, asked the Constitutional Court not to sell Crane bank.

Mbabazi said together with all shareholders of the closed National Bank of Commerce (NBC) including businessman Amos Nzeyi and Prime Minister Ruhakana Rugunda, they stand to lose if Crane bank is sold at the moment.

In 2012, Bank of Uganda took over management of NBC and its assets were given to Crane Bank worth $200m.

According to Mbabazi’s lawyers, the transfer of NBC assets infringes NBC shareholders’ fundamental rights as enshrined in the constitution hence the intended sale of the said Crane Bank Ltd “is therefore null and void and any person or group of persons or company which purports to buy the said Crane Bank Ltd before the Constitutional Court of Uganda disposes of the above cases or without the express consent and/or authority of the shareholders of NBC does so at his/her own risk and peril”.

Bank of Uganda took over Crane bank in October this year for being undercapitalised and welcomed whoever was interested to invest in the bank.

Mbabazi and his business associates want court to first dispose of the case in which they challenge the transfer of the NBC’s assets to Crane Bank before it can be sold.

Severino in a letter dated November 4 to the Constitutional Court registrar said Mbabazi filed the application back on the 28th September 2012 but has never heard anything ever since.

“We wish to express our deep concern that the related application to determine whether the various respondents committed acts of contempt of court has not been disposed of either,” the letter reads.

The case was supposedly ignored owing to a backlog and subsequent general elections.

NBC was formed in 1991 and was named Kigezi Bank of Commerce, with a mission to provide banking services and inexpensive loans to the Kigezi Community.

The shareholders went ahead to register their case with the constitutional court.

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