The DFCU Bank on Friday threatened to Mr. Sudhir Ruparelia’s son, Rajiv on allegations that he is the one propagating what they called “fake news” about what the social media users called “Liquidity crisis” at DFCU Bank. The Bank also demands public apology from Rajiv, who denies any wrong doing.
The DFCU managers are concerned that such negative publicity forced many customers to withdraw their deposits en-mass, which might lead to the collapse of the Bank. DFCU, which is Uganda’s largest Bank in assets, has since explained that it remains a stable bank contrary to what is being published.
Bad blood between Sudhir Family and DFCU
The central Bank in October 2016 took over Crane Bank allegedly citing significant undercapitalization. Crane Bank then owned by Ruparelia family, was later sold to DFCU at Shs200b. The Auditor General says in his latest special audit report to parliament that Crane Bank was sold to DFCU without valuation of assets and liabilities. Instead Bank of Uganda relied on the inventory report and due diligence undertaken by DFCU, the buyer.
DFCU Liquidity Issue
After half a decade of doing business with DFCU, CDC on June 14 wrote to the Mr. Elly Karuhanga, Board Chairman, communicating its intention to sell its stake. The company’s Investment Director in charge of Financial Institutions, Irina Grigorenko, said it was “undertaking a review of its investment in DFCU Limited which may lead to the disposal or some of some or all of its shares in DFCU over the short to medium term.”
CDC accused DFCU Bank officials of fraudulently acquiring former Crane Bank ltd at just shs 200m in connivance with officials at Bank of Uganda even after the bank boasted of assets worth trillions of shillings.
CDC directed Deepak Malik might to resign from DFCU board because they never wanted to be party to fraud.