Confidential files that have leaked to the media reveal that Bank of Uganda was in bed with Crane Bank lawyers to sell off the bank, The Uganda Mirror reflects.
The leaked files show that Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates were paid a total of more than Shs3.5billion to orchestrate a deal that would see Crane Bank sold.
In one of the invoices dated November 28, 2016, MMAKS Advocates was invoicing for pre takeover process of Crane Bank.
The transaction advice IRO to take Over Crane Bank fees were $251,000 which is around Shs916million.
In mid-December 2016, another payment was made to Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates by Bank of Uganda as professional fees to handle the Crane Bank case.
The professional fees paid to Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates were totalling to $166,796 which is around Shs608million.
This website understands that Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates was also supposed to handle post takeover activities like selection and appointment of an auditor to make statutory inventory of the assets and liabilities of Crane Bank, coordinate the bidding process, conduct due diligence on prospective buyers and evaluate bids.
On the same invoice, Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates were also paid fees for their advice on how to sell Crane Bank.
Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates were also responsible for advising on the suitable mode of disposal and draft, negotiate and conclude the requisite sale documentation and progress the matter to a successful conclusion.
Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates received $251,045 which is around Shs916million.
In exercise of its powers under Section 87(3), 88(1)(a) & (b) of the Financial Institutions Act 2004, Bank of Uganda successfully took over Crane Bank of which it later sold to DFCU Bank.
With the track of these classified files, it shows that early as November 2016, Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates had already planned with Bank of Uganda to sale Crane Bank.
It should be noted that Timothy Masembe Kanyerezi of MMAKS Advocates and David Mpanga from FK Mpanga and Company Advocates were previosly lawyers of Crane Bank.