By Watchdog reporter
The oldest party in Uganda, the Democratic Party has expressed concerned over the manner the Central Bank took over Crane Bank.
DP said Crane Bank which was taken over by Bank of Uganda last week was a very important bank to be taken over shabbily like Governor Mutebile Emmanuel did last week.
DP spokesman Kakande Kenneth Paul told the media on Tuesday morning that the government should come clean on the move on the bank which shakes the confidence bank’s customers, banking sector and the economy.
“The Democratic Party believes that the taking over of Crane Bank by the Bank of Uganda last week shouldn’t merely be looked at on the face of the sole reason for the action put forward by the Bank of Uganda as being undercapitalized,” Mr Kakande said.
DP wants a full investigation into the causes of the takeover, what went wrong and why the central bank failed its duty to come to light.
“The Party is convinced that there must be thorough investigations into what particularly caused the collapsing of the third ranked bank in the Country,” said the party publicist.
He added, “There is an insider job to the issue that the Bank which has been making huge profits is collapsing. This bank is very critical in our economy and the security of many Ugandans who have accounts in this bank in effect is too important.”
Kakande says the comments by the bank owners reflecting political interference did not reflect well on the government and it makes investors lose confidence in the already beaten economy.
“The fact that one of the proprietors Mr. Sudhir Ruparelia admits that there are mafias collapsing this bank raise questions about the way the economy is being managed. The Bank of Uganda must come out with a report explaining how Crane Bank ends up collapsing and if there are fraudulent deals responsible for the mess should be brought to light and culprits castigated and prosecuted. It is unacceptable to have banks operating as conduits for fraudsters. This is not a mafia state.”