DFCU has itself to blame for self-inflicting injury on its reputation

By Lawrence Kazooba

The past couple of days have seen heightened bad blood between DFCU bank, some online media and Rajiv Ruparelia, now in charge of the Ruparelia Group. At the heart of the wrangling is Crane Bank which was taken away from the Ruparelia family two years ago by the Bank of Uganda. The transaction has left the banking sector naked, with low confidence in the managers of the financial sector.

The Bank of Uganda has, however, started looking internally and trying to resolve its internal contradictions reflecting in its recent changes in the management of the Central Bank, and also, its recent economic reports.

However, what is not going away is the deal Bank of Uganda made with DFCU bank. Going by revelations of the closure of Crane Bank and subsequent dealings until it landed safely into DFCU hands, there are court battles and also war of words, which are not ending soon, possibly until an amicable settlement of the matter is reached.

DFCU once a little bank, fattened itself into the second biggest bank in Uganda.

They have Crane Bank collapse to thank for arriving into this coveted place. However, what DFCU bank cannot dismiss easily is the fact that there are a several things that went wrong for an organization that seeks to hold a clean reputation, and the earlier they addressed them the better.

The recent report to Parliament by the Auditor General had unbelievable revelations, not only about DFCU but also the manner in which Bank of Uganda has been conducting business, particular, when it closes commercial banks. The reports by the auditor general are not mere allegations, but substantive observations neither Bank of Uganda nor DFCU denied. It is clear, Bank of Uganda, rather its officials, have given the public room to suspect it has been involved in dubious deals. One to say suspected fraud or corruption or mismanagement, is to say the very least.

Unfortunately, DFCU, a bank with international shareholders, got involved in these dubious activities in the latest bank give away. All reports point to its Chief executive Juma Kisaame, as the point’s man, in these transactions. Before DFCU comes out to defend its reputation , it should admit that the rains have found its roof with wide holes in it. It must wet inside, certainly, unless holes are fixed.

Like other social media users, I have read reports attributed to DFCU, addressed to Rajiv Ruparelia, that he was intending to cause a run on a bank. I should observe that the statement although coming from lawyers, does not mean anything, apart from doing what DFCU is accusing Rajiv of doing. It is defamatory. If I were Rajiv or an owner of any of the named online media, I would sue DFCU for injuring my reputation.

Why would DFCU get involved in smokescreens? The bank with a bulk of expectations from its customers, should by today, be asking its CEO about the reports admitted by Bank of Africa in a statement, that Mr Juma received over USD40 million on his account and withdrew the money personally in smaller installments until he emptied the account! It is already suspicious that a CEO received such good business and pass it through the bank he manages!!!

It is unfortunate that the Financial Intelligence Authority is paid by the taxpayer but is not in the know or even interested in such revelations.

Kisaame is not the only person who has come to the fore for keeping exorbitant amounts of money in banks here. The point actually is not about the amount kept in the bank, but, money that should raise dust given the people involved. Today it is Bank of Africa apologizing to Kisaame, but, a few months back, banks were apologizing to Mrs Justine Bagyenda, the former director in charge of supervision at the Bank of Uganda, and board member of the Financial Intelligence Authority. The story of Ms Bagyenda’s wealth cannot be forgotten by the public easily, because, in a country of have-nots, and seriously biting poverty, you cannot have public officials accumulating so much wealth without proper explanations.

DFCU might look away, and look at itself as a victim of a mudslinging.