National Bank of Commerce (NBC) are demanding over Shs295bn for illegal closure of their Bank.

  • Posted on: 4 February 2019
  • By: sanyu-fm-news

Shareholders of the defunct National Bank of Commerce (NBC) are demanding for recovery of over Shs295bn as losses and damage caused by the illegal closure of their Bank.

 These led by the then Board Chairman, Mathew Rukikeire, the former Prime Minister, Patrick Amama Mbabazi, Amos Nzeyi and justice Goerge Wilson Kanyeihamba among others have been interfacing the COSASE committee over the closure of defunct banks.

National Bank of Commerce (NBC) was closed on September 27, 2012 by Bank of Uganda on allegations that it was under capitalised by the then minimum capital requirement of Shs10bn.

However, Rukikeire notes that however much they endeavored and raised 7bn shilljngs in four days despite BOU giving then seven days to do this , still after a few days their bank was closed.

He says by the time of the closure, the Bank had 97 percent of the required minimum capital yet the law puts minimum requirement at below fifty percent hence citing intrigue and conspiracy at the Bank of Uganda as the major driver into the closure of their bank.

According to Rukikeire, in a public notice issued by BOU Deputy Governor, Dr. Louis Kasekende, it was claimed that the takeover, winding up and immediate purported sale of NBC to Crane Bank was done to protect the interests of depositors and maintain the stability of the financial sector
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Rukikeire said that this was far from the truth since NBC depositors' interests were not under any threat at the time of the closure of the bank and the shareholders of the bank had demonstrated capacity to meet the necessary capital required.

Its at this point that he pleads to the committee that justice be met as the shareholders of the bank be paid a sum of 295bn they suffered as losses and damage.