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Dfcu board feeds MD Kisaame’s resignation letter to paper crusher

KAMPALA | Juma Kisaame is one lucky man. Where many are getting terminated from jobs, the dfcu bank managing director cannot even leave willfully. The Board of Directors has fed his resignation into a paper crusher and told him to stay put.

Though Kisaame had already made up his mind to leave, Elly Karuhanga, the dfcu Group chairman, convinced him to stay on as they are navigating the scandal that came with the acquisition of Crane Bank.

Dfcu has been riddled with scandals ever since it took over Crane Bank in January 2017 at Shs200 billion a transaction, which had landed Bank of Uganda (BoU) in much trouble.

Another theory is that Kisaame had tendered in his resignation after being under pressure to explain to the bank’s shareholders how Shs1.8 billion was spent on the construction of the Dfcu Financial
Centre located in Namanve Industrial and Business Park.

In July, it was revealed that Dfcu Bank’s second biggest shareholder, CDC Group, had decided to review its shareholding in the bank.

In letter dated June 14 CDC Group, a UK-based development finance institution, informed Dfcu bank Limited top management, Irina Grigorenko, the investment director Financial Institutions, said CDC Group Plc was undertaking a review of its investment in Dfcu Limited which may lead to the disposal of some or all of its shares in Dfcu over the short to medium term.

The firm has over the years reduced its shareholding to about 10% from 60%.

“After a period of over 50 years as a shareholder, it is our aspiration to exit in a manner that causes minimum disruption to the business and ensures that the orderly trading of Dfcu’s shares,” read the letter.

“CDC’s objective is to identify like-minded investors who could support Dfcu in its new phase of
growth.”

As of December 2017, dfcu was the second-largest bank in Uganda, with an asset base of Shs3.03 trillion ($821.6m) and shareholders’ equity (debt) of Shs508.8 billion.

The bank posted Shs114 billion in profit for the year ended December 31, 2017, but recorded growth in non-performing loans, majority of which were adopted from the Crane Bank toxic loan book.

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