{UAH} He lied to us -Bank of Uganda wants 350 billion shillings from Tycoon Sudhir Ruparelia over Crane Bank Collapse

Even with the recent takeover of its assets by rival lender DFCU, the embattled shareholders of Crane Bank Limited (under receivership) are not yet out of the woods as the Bank of Uganda continue to pursue recovery of the bank's non-performing assets.

Sudhir with President Museveni

The central bank has slapped a collective bill of $115 million on the defunct lenders shareholders with principal shareholder Sudhir Ruparelia being personally held liable for $100 million of that amount.

According to the banking industry's grapevine, Sudhir has been given two options – pay up the missing money in cash or else return to the custody of the receiver manager, the securities borrowers initially used to secure the loans that have now gone toxic.

DFCU completed the purchase of Crane Bank's more palatable assets on January 27, but it was allowed to cherry pick among the liabilities.

Bank of Uganda governor Emmanuel Mutebile

Sources say the circumstances leading to Sudhir's current predicament started just over a decade ago when bent on growing into Uganda's largest property mogul, he began transferring to Crane Management Services, titles to the properties of borrowers who failed pay loans. While under conventional banking such properties are supposed to be put on the market to make provisions for the bad loans, Sudhir never bothered to fill the hole.

Instead whenever Bank of Uganda auditors made their supervisory rounds, the tenure of the bad loans and the associated securities would temporarily be lent back to Crane Bank to create the impression that the loans were provisioned for and all is well.

"That is how for decades, he has been able to fool the Bank of Uganda's 'Iron Lady' Ms Justine Bagyenda, the no nonsense Director for Supervision at the central banker.

http://xrated.co.ug/he-lied-to-us-bank-of-uganda-wants-350-billion-shillings-from-tycoon-sudhir-ruparelia-over-crane-bank-collapse/?preview=true

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Allaah gives the best to those who leave the choice to Him."And if Allah touches you with harm, none can remove it but He, and if He touches you with good, then He is Able to do all things." (6:17)

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