A Ugandan has filed a lawsuit against the Central Bank for neglecting Crane Bank which subsequently led to its collapse before it was acquired by DFCU Bank.
Derrick Nsereko, on Tuesday filed his suit before High Court civil division accusing Bank of Uganda (Bou) for breaching part viii of the financial act.
This website last week reported how Nsereko through his lawyers Kashilingi, Rugaba and Associates had vowed to sue BoU.
He claims in his suit that the Central Bank from 2013 to 2016, failed to take corrective action against Crane Bank’s financial affairs, thereby putting depositors’ funds at risk.
He now wants among others, the court’s declaration that Bank of Uganda “acted in bad faith, negligently, in breach of her duties towards him, and Ugandans in repeatedly giving Crane Bank clean financial bills of health.
This particular claim has resonated over the past week amongst most critiques of the Central Bank in the wake of its law suit against Sudhir
Nsereko also wants Bank of Uganda officials who didn’t deliver on properly monitoring the defunct financial institution held responsible.
He also seeks “An order of account against (BoU) with regard to all the assets and liabilities of Crane Bank and application of any proceeds from all the businesses of the bank
Bank of Uganda remains silent on the matter maintaining earlier position that the matter is before Court.
“While the Bank is cognisant of the level of public interest generated by this case, we are constrained in commenting extensively until the matter is resolved by court,” the statement read.