By Gad Masereka
Kampala: The directors of Crane Bank Limited have applauded a recent decision by the Court of Appeal in London, United Kingdom, which determined that the case involving the fraudulent acquisition of CBL assets by Dfcu Bank can be litigated in the UK.
The shareholders thanked the Court for upholding their claims, which will cause DFCU to spit up billions totaling roughly Ugx795B, in a statement signed by Crane Bank.
“Crane Bank and its shareholders are thrilled with the Court of Appeal’s decision, which upholds their position,” they said. Their claim for hundreds of millions of US dollars against DFCU Bank, its executive directors, non-executive directors, and shareholders has been approved by the Court of Appeal, according to a statement from DFCU.
The appellants claim that beginning in 2016, top members of the Ugandan government and employees of the Bank of Uganda engaged in a corrupt conspiracy to seize control of CBL, improperly using legal and regulatory authority to do so, and subsequently sold assets for the benefit of the scheme’s participants.
“The Court of Appeal found that there are serious issues to be tried and the claim falls outside of the foreign act of state doctrine, relying on the commercial activity exception and the argument that all the executive acts in question engage the English public policy of combating and not giving legal protection to bribery and corruption,” the Crane Bank statement continues.
The London Court of Appeal’s decision means that DFCU and the other Defendants cannot use the notion of a foreign act of state to escape accountability, which pleased the shareholders of Crane Bank.
Crane Bank further stated that “Crane Bank and its shareholders will continue to zealously pursue their claim as part of a fair legal process before the English courts.”
Following an appeal by Crane Bank Limited, Sudhir Ruparelia, Jyotsna Ruparelia, Meera Rupareliac, Rajiv Ruparelia, Tom Mugenga, and Sheena Ruparelia against DFCU bank and other shareholders regarding a previous High court ruling that stated the English courts lack the authority to hear the claim brought by Crane bank and its shareholders, the UK issued its judgement this week.