Economic analysts say it is illegal for the central Bank to liquidate Crane Bank in receivership because the process of receivership ended on 18th January 2018 after selling the bank to DFCU.
According to Andrew Mwenda, what the Bank of Uganda is doing is against the law and whoever is advising them is wrong.
It came to the attention of Ugandans a few days ago that the central bank is plotting a move to liquidate crane bank even as its receivership is still being contested by its founders. This strategy was designed by the Bank of Uganda legal team on the advise of its new external Lawyers.
"Though I am not a lawyer, but in law when receivership ends the company automatically reverts its shareholders and directors. Because receivership ended, crane bank right now is not a licensed financial institution; it cannot be under the supervision and regulation of the central bank," Mwenda said.