KAMPALA, Uganda: The legal battle between the defunct Crane Bank and the Central Bank yesterday got to a new twist after the lawyers representing Central Bank were dropped.
Bank of Uganda withdrew the services of its lawyers Timothy Masembe Kanyerezi of MMAKS Advocates and David Mpanga from FK Mpanga and Company Advocates in a case against property mogul Dr. Sudhir Ruparelia.
The new twist follows a complaint by the tycoon regarding lack of impartiality and the releasing of confidential depositors details to the media by the lawyers. Similarly, The Investigator has established that lawyers from Sebalu Lule & Co. Advocates shall represent it in the case forthwith.
The Central Bank accuses Sudhir, the former Crane Bank proprietor, of siphoning billions of shillings from the financial institution, leading to its collapse. BOU took a decision to drop its former lawyers after Sudhir complained the duo worked for him at Crane Bank therefore there was conflict of interest and breach of trust.
On the other hand, Sudhir blames BOU for flouting key terms of a Confidential Settlement and Release Agreement (CSRA) he signed with the central bank.
Sudhir with his son Rajiv Ruparelia and BOU officials on Monday met Commercial Court Judge in a closed door meeting.
According to a source privy to this meeting, the Central Bank told Court it had acquired new lawyers as a means of setting a levelled ground for mediation. After the meeting Sudhir told the media that what was discussed is confidential. It must be noted that Judge Yorokamu Bamwine earlier advised the two parties to engage in mediation, but the affluent businessman Sudhir exhibited no interests in talks.
He also wants court to direct former BOU lawyers be listed as his witnesses in the case. Through his lawyers of Kampala Associated Advocates, Sudhir told court that on several occasions, companies in which he was a shareholder gave instructions to MMAKs Advocates and sought legal assistance from them.”