KAMPALA: Embattled Dfcu Bank has been thrown in spotlight again after it emerged that the bank was misled by city Law firm Sebalu & Lule Advocates to illegally transfer title properties that belong to former Crane Bank Ltd landlord Meera Investment Ltd.
According to a leaked dossier, the Sebalu & Lule Advocates who were recently barred by the High Court from representing the same bank against city tycoon Sudhir Ruparelia for being conflicted misled the dfcu Bank to transfer leasehold titles from Crane Bank Ltd during the controversial takeover two years ago.
In a leaked document titled Transfer of former Crane Bank household properties, dated May 8, 2017, “the law firm skipped important aspects of the law including the fact that banks are not allowed to invest in business for fear of conflict of interest with their clients, apart from their main premises” banking analysts say.
“In light of the lengthy of time between the completion of date and when dfcu can vividly exercise the option to rescind the purchase of household properties, our recommendations is that the transfer be registered immediately,” reads an excerpt from the leaked document.
According to industry experts, the whole procedure was entangled with fraud as there was no consent from the Landlord (Meera Investment Ltd) before transferring the lease to another party.
Experts says this, “nullifies the transfer because lack of consent alone nullifies the whole procedure” as ownership belonged to Meera Investment Ltd, an independent body from the defunct Crane Bank Ltd.
Experts also wondered how ‘senior’ lawyers like Sebalu & Lule Advocates could have ignored such a very important aspects of law, causing dfcu massive losses in billions of shillings.