DPF lacks information on depositors
An agent banker completes a transaction. DPF started receiving and verifying information and documents of depositors who held company and joint accounts within the defunct ECF bank. PHOTO/ FILE
What you need to know:
The now defunct EFC bank had 2,066 depositors with balances of approximately Shs53 billion.
Deposit Protection Fund (DPF) has expressed fear over lack of information on depositors. This is according to Dr Julia Clare Olima, the chief executive office at DPF.
“The major challenge of this process has been lack of information on depositors. Since 2019, we have been running a campaign in the media asking all depositors to update their personal information with their respective financial institutions,” Olima said.
She added: “However, some depositors have not done this and this has affected the speed at which we are able to pay them. Nevertheless, those who submitted this information were happy that we have been able to serve them first.”
She further noted that for this exercise to be faster, all Ugandans who have bank accounts should update their information accordingly.
This was revealed on the sidelines of a media briefing on updating the public regarding the progress of paying off the depositors that were affected following the closure of the EFC bank Ltd.
Last month, the Bank of Uganda placed EFC Uganda Limited under liquidation, revoked its license, and ordered the winding up of its affairs, citing a violation of capitalisation and governance regulations.
The Financial Institutions Act 2004 as amended, protects deposits of up to Shs10 million per depositor, which are supposed to be paid by the DPF. These amount to about Shs2 billion.
Latest information from DPF indicates that a total of 374 depositors of the recently closed EFC micro finance Uganda Ltd have so far been paid.
Mr Yusuf Mukiibi, the director of finance and operations at the DPF, noted that this represents 50 per cent of depositors with balances not exceeding Shs10m which is more than Shs 125 million that has so far been paid by DPF. DPF indicates that as at the end of February 12, 2024, approximately 50 per cent of the depositors who held balances of up to Shs10 million had been paid.
DPF is a government agency that provides deposit insurance to depositors in regulated financial; institutions by Bank of Uganda.
During an earlier briefing, DPF indicated that the now defunct EFC bank had 2,066 depositors with balances of approximately Shs53 billion.
Depositors whose loans exceed their deposit balances and they were therefore offset were 1,250 depositors amounting to Shs1 billion.
The number of depositors yet to be paid by DPF is 405, an amount worth Shs174 million.
On the other hand, Dr Olima noted that the fund has now also started receiving and verifying information and documents of depositors who held company and joint accounts within the defunct EFC bank.
