Kasaija blames Crane Bank closure on Sudhir

Monday February 11 2019

Finance Minister Matia Kasaija. FILE PHOTO

Finance Minister Matia Kasaija. FILE PHOTO 

By Nelson Wesonga

KAMPALA. Finance minister Matia Kasaija says he had advised Crane Bank proprietor Sudhir Ruparelia to sell some of his property to recapitalise the bank but the latter refused.
According to Mr Kasaija, Mr Ruparelia, whose bank was facing a liquidity crunch in 2016, responded “Honourable Minister, I’m fed up; let the bank go”.
“When the governor [Tumusiime Mutebile] brought to my attention the problem Crane Bank had, I rang Mr Sudhir. I said ‘Mr Sudhir, I don’t want your bank to go under because when it goes under, it reflects very poorly on the economy,” Mr Kasaija told the House Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) on Friday.
“The Central Bank is telling me your bank is undercapitalised. I know you own some property here in town. Would you mind selling off some of the property and make good? he said ‘No’,” Mr Kasaija said.
When the Daily Monitor contacted Mr Ruparelia for comment, he said he had already spoken to Cosase.
“I can’t say anything other than what I have said in Cosase,” Mr Ruparelia said.