BoU tight-lipped as Crane Bank dismisses Shs60b theft claims

State Minister for Works John Byabagambi (R), Mr A. R Kalan (2nd L) with other bank managers at the launch of Crane Bank Ibanda branch early this year. Photo BY STEPHEN WANDERA 

By ISMAIL MUSA LADU

In Summary

Bank says claims are unfounded rumours and should be ignored

KAMPALA

Bank of Uganda (BoU) has declined to comment or issue a statement on claims that one of the Crane Bank senior managers has allegedly defrauded the bank of about Shs60 billion, saying this is a matter that the company (Crane Bank) can deal with.

 

Speaking to Daily Monitor yesterday, the acting director communication BoU, Mr Edward Tenywa, said: “Crane Bank is best placed to respond to these allegations.”

He continued: “Although we oversee the financial sector, it is not our business to discuss such rumours with the media—we have a way we take it up.”
Meanwhile, the Crane bank board of directors has issued a statement dismissing the claims as baseless and unfounded.

According to a statement issued yesterday and signed by the board chairman, Mr Joseph Biribonwa, the bank is focused on delivering services to its customers and that there is no need for any alarm as all is well with the company.

“Our attention has been drawn to rumours surrounding the absence of its (the bank’s) Managing Director Mr A. R. Kalan from office. The rumours with a variety of flavours ranging from loss of $18 million (about Shs47 billion), others Shs60 billion are baseless and unfounded. They should be ignored,” reads the statement

The statement continues that: “Mr. Kalan is on leave with the approval of the Board of Directors. And on granting an extended leave, the Board appointed one of its Executive Directors Mr P. K. Gupta, a seasoned Banker, as the acting Managing Director.”
Mr Gupta is the Acting Managing Director until further notice, reads the statement.
And for that, Mr Biribonwa affirmed that all is well, including compliance with the requisite regulations governing financial institutions.