The Commercial Court has summoned DFCU bank to file its defense within 15 days over allegations that it refused to pay off debts that were incurred by Crane Bank, which it acquired early this year.
This is after an advertising company; Premier Advertising and media Ltd sued DFCU bank claiming it demanded 112 million shillings from Crane Bank at the time Bank of Uganda transferred all its assets and liabilities to DFCU.
The company says it provided advertising services to Crane Bank and had not been paid at the time Bank of Uganda transferred all the bank’s assets and liabilities to DFCU.
David Esiat, the company manager says this debt arises from an advertising contract which was between Crane Bank and his company to market its products and services.
He says that despite repeated demands and reminders to DFCU bank, it has refused to settle this debt which has occasioned loss to his business.
DFCU’s Head of marketing Jude Kasiime had not returned our requests for comments.
Bank of Uganda transferred the assets of Crane Bank to DFCU on January 27th this year having taken the Bank under receivership in October 2016.
The Central Bank Governor Prof Emmanuel Mutebile said Crane Bank’s liabilities he said “grossly exceeded its assets” and that it was insolvent.