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    EC Sets programme and polling date for Bukimbiri County Parliamentary by-election 

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    Soroti City East By-elections: EC sets Tentative but Statutory deadline as Justice Byabakama Preaches fairness and Free process

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    Electoral Commission Issues Detailed 2022 Guidelines for Women Councils and Committees From Village to District Levels

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    Final Whistle: UMA and NCF Floor UNCC as Ministry of Gender, Labor and Social Development Okays 28th June as Date for New Leaders Elections

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    NWSC Improves Apac Water Supply with over 150 Kms of Main Extensions to Cover 60% of the Quantity Projected 

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    EC Sets programme and polling date for Bukimbiri County Parliamentary by-election 

    EC Sets programme and polling date for Bukimbiri County Parliamentary by-election

    Soroti City East By-elections: EC sets Tentative but Statutory deadline as Justice Byabakama Preaches fairness and Free process

    Soroti City East By-elections: EC sets Tentative but Statutory deadline as Justice Byabakama Preaches fairness and Free process

    More Clout: Stanbic Bank’s CEO Anne Juuko Business Leadership Skills Continues to Star, wins at the ABLA

    More Clout: Stanbic Bank’s CEO Anne Juuko Business Leadership Skills Continues to Star, wins at the ABLA

    Electoral Commission Issues Detailed 2022 Guidelines for Women Councils and Committees From Village to District Levels

    Electoral Commission Issues Detailed 2022 Guidelines for Women Councils and Committees From Village to District Levels

    Raw Deal: Businesses cry Foul, says they Reap Zero out of Billions they Invest in ‘Influencers’ that Never Attract a Penny in Sales

    Raw Deal: Businesses cry Foul, says they Reap Zero out of Billions they Invest in ‘Influencers’ that Never Attract a Penny in Sales

    Still on MPs` Salary Upsurge? Well, Hon. Speaker Anita Among`s UGX2.5Bn New Mercedoz Finally Jet into the Country! 

    Still on MPs` Salary Upsurge? Well, Hon. Speaker Anita Among`s UGX2.5Bn New Mercedoz Finally Jet into the Country!

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Tech
    • All
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    • Gadget
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    UNBS closes Sunshare factory over failure to comply with Standards

    UNBS closes Sunshare factory over failure to comply with Standards

    Outgoing PRAU President Cynthia Mpanga (right) hands over the key to new PRAU President Sarah Kagingo as PRAU Patron Min. Frank Tumwebaze looks on

    Hon. Frank Tumwebaze graces PRAU Governing Council Handover Ceremony

    UG Pineapple at B&W

    It was Blankets and Pineapple Waragi as SA’s Distruction Boys entertain Kampala

    To Connect the Unconnected with Innovations towards Inclusive Growth

    To Connect the Unconnected with Innovations towards Inclusive Growth

    Cindy Sanyu

    Cindy Sanyu to headline Eastern Megafest

    Vincent Omoth – Marketing Manager Fresh Dairy (L) hands over 20 classroom desks to Head Teacher Kirinya Catholic School

    Fresh Dairy donates classroom desks to Kirinya Catholic Primary School

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
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    Final Whistle: UMA and NCF Floor UNCC as Ministry of Gender, Labor and Social Development Okays 28th June as Date for New Leaders Elections

    Final Whistle: UMA and NCF Floor UNCC as Ministry of Gender, Labor and Social Development Okays 28th June as Date for New Leaders Elections

    English Whistle: Englishman Anthony Woodthorpe Won’t Stomach Stubbornness at Rugby Africa Cup in France 

    English Whistle: Englishman Anthony Woodthorpe Won’t Stomach Stubbornness at Rugby Africa Cup in France

    Never Say Never: Doreen Kabareebe to finally Represent Uganda at the MS International Beauty Pageant

    Never Say Never: Doreen Kabareebe to finally Represent Uganda at the MS International Beauty Pageant

    Good to Fly: Crested Cranes CECAFA SWC Triumph Signals a Ready Team for the Morocco Bound AFCON

    Good to Fly: Crested Cranes CECAFA SWC Triumph Signals a Ready Team for the Morocco Bound AFCON

    The Bul-let: Resilient BUL FC fires a revenge bullet into Vipers Fresh at Stanbic Uganda Cup, stopping the Venoms Season Double 

    The Bul-let: Resilient BUL FC fires a revenge bullet into Vipers Fresh at Stanbic Uganda Cup, stopping the Venoms Season Double

    New Precedence: King Saha, Lawyer Erias Lukwago threaten to Contest any form of Online-Based Voting for UMA Presidency 

    New Precedence: King Saha, Lawyer Erias Lukwago threaten to Contest any form of Online-Based Voting for UMA Presidency

  • Lifestyle
    • All
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    • Food
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    • Travel
    NWSC Improves Apac Water Supply with over 150 Kms of Main Extensions to Cover 60% of the Quantity Projected 

    NWSC Improves Apac Water Supply with over 150 Kms of Main Extensions to Cover 60% of the Quantity Projected 

    Expert adds Scientific Angle to NCS’s Witchcraft Scandal without Dismissing the Vice as a Big Pass time for Africans

    Expert adds Scientific Angle to NCS’s Witchcraft Scandal without Dismissing the Vice as a Big Pass time for Africans

    Covid-Funds-Theft Records: Top Health Ministry Officials Stuck with UGX52Bn Loot as Districts Jam to Account for Air 

    Covid-Funds-Theft Records: Top Health Ministry Officials Stuck with UGX52Bn Loot as Districts Jam to Account for Air

    National Water and Sewerage Corporation Technical Staff’ Skills Enhanced for Better Service Delivery 

    National Water and Sewerage Corporation Technical Staff’ Skills Enhanced for Better Service Delivery

    The Story: How Nabilah’s Sobbing Husband Ssempala Left a Hole into which Barya Slipped and Filled

    The Story: How Nabilah’s Sobbing Husband Ssempala Left a Hole into which Barya Slipped and Filled

    U`re Hypocrites: Ugandan Socialite Zaituni Kirigwajjo aka Zari Freezes her Appearances on all Uganda Events 

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    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
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  • Opinions
    UNBS closes Sunshare factory over failure to comply with Standards

    UNBS closes Sunshare factory over failure to comply with Standards

    UG Pineapple at B&W

    It was Blankets and Pineapple Waragi as SA’s Distruction Boys entertain Kampala

    To Connect the Unconnected with Innovations towards Inclusive Growth

    To Connect the Unconnected with Innovations towards Inclusive Growth

    Cindy Sanyu

    Cindy Sanyu to headline Eastern Megafest

  • 2021 Uganda Elections
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Death at Birth: Bank of Uganda timely Blocks Troubled Afriland Bank from Fleeing the Country with Creditors` Money, Liquidates it

May 26, 2022
inBusiness
Death at Birth: Bank of Uganda timely Blocks Troubled Afriland Bank from Fleeing the Country with Creditors` Money, Liquidates it

Afriland First Bank Uganda along Uganda Road is up for liquidation (Courtesy Photo)

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Before even celebrating their first birthday in Uganda, the already beleaguered Cameroonian Afriland First Bank Uganda is not only facing insolvency related problems… They have actually resolved to throwing in the towel and close door in Uganda after failing to shoot the sky, the Investigator can authoritatively, reveal.

The capital woes look to be of grave nature since the owners, we are reliably informed, have formerly communicated to the Central Bank, their willingness to voluntarily wind-up business. They have for some time now, been caught between exiting the country and, or mobilizing the cash to recapitalize their financial institution.

But they seem to have taken the closure as their resolve. This stance, at least going by our inner sources who offered that they have already started on the journey of exiting the country. This, by writing to the regulatory body, Bank of Uganda, expressing their intention to wind up business voluntarily. Indeed, Bank of Uganda acknowledged receipt of their application but not without a pinch of salt. 

Highly placed sources within the central bank have acknowledged being privy to Afriland owners’ intent to close business. “Yes, we were informed by the relevant bank authorities about their intention to exit the market. They have, even written formally to express that interest. However, they want to wind up business and we are saying no. They should instead apply for liquidation,” an authoritative BOU source offered.

For starters, winding up business in Uganda, by any company and or financial institution is voluntary. However, for them to close, yet with outstanding financial issues with third parties, such an entity must be subjected to liquidation of its properties in order to clear the said parties and, this is Afriland`s case. Especially for being a foreign entity which, after going out of jurisdiction, it would be very impossible for creditors to recover their money, BOU stepped in, fearing a backlash of lawsuits from the Creditors, including shareholders. 

“Bank of Uganda hereby informs the public that Afriland First Bank Uganda Limited in a solvent financial institution. Therefore, all depositors and other verified creditors shall be paid in full. All depositors of Afriland First Bank Uganda Limited are encouraged to withdraw their deposits…”  Michael Atingi – Ego, the Bank of Uganda Deputy Governor announced in a public release yesterday. 

However, the top managers at Afriland had devised means of secretly going about the closure. This, by creating a believably sweeter story to this development. According to Stefano, one of the top managers, they are lately holding lengthy meetings to deliberate on how to find the capital in order to stay afloat amid a challenging business environment. “Yes, we are doing everything possible to find the money needed for recapitalizing our bank,” he told us last Thursday. 

Stefano devotedly refuted claims that the bank has indeed gone ahead and asked the regulator to allow them wind up voluntarily. “What is true is that we are seriously looking at recapitalization of the bank. The other bit of winding up is simply not true,” he asserted. Nevertheless, Bank of Uganda yesterday publicly confirmed our two-week old story. They issued a no-objection to Afriland’s liquidation.  

The liquidition woes arrive amid a spat over the bank’s shareholding. A Ugandan associate of Dr Paul Kamangne Fokam, one Cliff Masagazi accuses the tycoon of denying him the shareholding he claims he is entitled to. Fokam is the owner of Afriland. In these pages lies a story on November 10thlast year, with an exclusive article exposing the shareholding scandal. Details indicate how Cliff claimed, he had helped Fokam to set foot in Uganda and that he pledged to pay him back in form of shares. Please refer to the said story titled;`SR Student? Afriland First Bank Boss Copies and Pastes Dr. Sudhir`s illegal habits of owning Shares via Proxies. `

Challenged: Paul Fokam

Principally, Cliff says it was because of his role as the local content, that the Central Bank granted Fokam an operating license since he is a foreigner yet the regulator wanted a local shareholder before granting the license. Fokam had presented a city businessman, Hajj Muyanja Mbabaali. But the central bank rejected him because his credibility credentials were found to be heavily wanting.

But Fokam has since gone back on his word because he used Cliff to give an impression to the central bank that there is a local shareholder in the bank as the law requires. The issue has since escalated into a high court battle. Cliff retained the famous firm of Muwema and Company Advocates to prosecute Fokam and the bank.

The gist

Cliff avers that Fokam wants to run away in order to frustrate his case. This, in reference to reports that Fokam is working on winding up business in Uganda after seeking permission from the central bank. It could be against this background that Bank of Uganda acted swiftly to block Afriland from winding and instead allowed them for liquidation. Away from this stance, what Cliff says would quickly trigger the memory of the Crane bank shareholding scandal. 

Whilst Crane Bank owner Sudhir Ruparelia told the central bank that the bank had numerous shareholders apart from him, what was true is that he was using proxies to hold the biggest stake in the defunct bank. Such proxies included a renowned banker, Karia, based in Nairobi. Karia has since owned up. Another proxy was a fake company known as Sapphire. Sudhir lied to the central bank about how this one was domiciled in Malaysia.

But the ruse would come to light after Crane Bank experienced financial problems caused by Sudhir himself who, robbed the bank blind. With the auditors about to expose the bogus company. Sudhir moved fast and took the file of Sapphire from the registrar of companies’ office. As, they say, the rest is history.

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