Former Crane Bank staff demand Shs 48bn from Bank of Uganda

Former Crane bank staff demand Shs 48bn from Bank of Uganda
Former Crane Bank employees have threatened to sue the governor Bank of Uganda for allegedly facilitating an illegal takeover of their employment hub by DFCU Bank sometime last year.

Former employees of the defunct Crane Bank are demanding for compensation of Shillings 48 billion from Bank of Uganda arising from breach of contract. The 400 former Crane bank employees are represented by ten of their former workmates.

They are Catherine Kate Achan, Teddy Akullo, Janet Mector Angwena, Mactose Arinaitwe, Edward Bukenya, Dianah Loy Kiwumulo, Abbey Mivule, Benjamin Muchwa, Robert Mwanje and Emmanuel Ngororan.

Until October, 26th 2016 the group was being employed by Crane Bank. Bank of Uganda took over Crane Bank on grounds that it was incapacitated, according to the law and would pose a systematic risk to the stability of the country’s financial system.

Through their lawyer, Isaac Ssemakadde the former employees argue that on January 27th, 2017 Bank of Uganda informed the general public that it had transferred and conveyed the assets and liabilities of Crane Bank to DFCU Bank Limited.

This was a subject to a purchase and takeover agreement that was reportedly concealed to the former employees whose rights were directly affected in the takeover process. Ssemakadde contends that during the takeover process, Bank of Uganda acted in bad faith, and in breach of its duties under the Constitution and the law in as far as the protecting employee’s rights is concerned.

According to the complainants, on February 24th, 2017 after the said takeover of Crane Bank, DFCU wrote a memo to its entire staff to the effect that several employees would be collectively terminated effective immediately.

They allege that the collective termination only targeted them purportedly due to assurances and inducements given to DFCU Bank and Bank of Uganda.

They argue that the collective termination of their respective employment contracts was unjustified and discriminatory as well as unlawful.

They state that they have suffered humiliation, inconvenience and financial loss as a result of the highhanded and unlawful acts of Bank of Uganda and DFCU.

They are therefore demanding for their respective terminal benefits in accordance with the law together with a basic sum of not less than Uganda shillings 120 million Shillings to each for the loss caused to them.

According to Ssemakadde, they will be left with no option but to sue DFCU and Bank of Uganda should they fail to heed to their demands by Christmas.

The complainants addressed a joint press conference with their lawyer at hotel triangle in Kampala. Both DFCU and BoU are yet to respond to the demands. DFCU has an asset portfolio of Shillings 3 trillion, which makes it the second largest bank in Uganda after Stanbic Bank.

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