More DFCU Workers Resign as Liquidity Tensions Soar - Daily Post Uganda

More DFCU Workers Resign as Liquidity Tensions Soar

dfcu Bank CEO Juma Kisaame speaking at the dfcu Limited 53rd AGM.

KAMPALA – More panic has engulfed DFCU Group following mass workers resignation from the bank.

This development comes at the time when Deepak Malik a majority shareholder’s director on the bank board also resigned from the group.

Daily Post Uganda has learnt that over 69 workers have left the bank in the last two months  under unclear circumstances. They further say even the human resource department that used to announce entry and exists at the bank have this time refused to announce exist because it is alarming.

Most those leaving are reportedly joining Housing Finance Bank and KCB bank.
“The situation is tense as you cannot tell who is next but we are only made aware that so and so has left when they don’t report for duty. The problem is that we aren’t allowed to discuss anything concerning what is happening.”
This website understands that the ongoing shakeups could have prompted mass exodus because seasoned managers and employees are being demoted and replaced by their juniors who are elevated to supervise their former bosses as heads of units.

However, this comes in with pay cuts which several employees are against and instead of waiting to be ‘humiliated’ most managers have opted to leave. The restructuring was hired by the board after Dfcu took over Crane bank. Dfcu started by firing all employees who had previously worked with Crane bank before moving in to downgrade in an effort seen as trying to get the old guards out.

Meanwhile, other sources told Daily Post that another reason why Dfcu is reducing on manpower could be in line to downgrade and make saving of the huge salary so that the bank can realize liquidity. The bank recently announced that it had run out of liquidity.

Mr Malik’s resignation as a non-Executive Director means that the Dfcu board is now left with five other non-executive directors led by All Elly Karuhanga as Chairman. Others directors are; Albert Jonkergouw, Winifred Tarinyeba- Kiryabwire, Frederick Kironde Lule and Michael Alan Turner.

Analysts say the Malik’s decision to resign confirms reports that Arise B.V. intends to leave especially that Britain’s Commonwealth Development Corporation (CDC) Group intends to exit, following Dfcu Bank’s controversial acquisition of Crane Bank Limited in January last year at only Shs200 billion yet Crane Bank had assets worth over Shs1 trillion.

Reports indicate that CDC is leaving for various reasons which include poor economy but some sources say CDC wants to dodge paying taxes on its dividends.
Financial analysts say with the revelation by Auditor General that Dfcu acquired Crane Bank Limited and yet it was the valuer and at the same time a buyer could land top Bank of Uganda executives in trouble as big shareholders of Dfcu are spending sleepless nights. The situation is made worse as the case is also in court.

DFCU Shareholding percentages
Arise BV 58.71 per cent
CDC Group of the United Kingdom 9.97 per cent
National Social Security Fund (Uganda) 7.69 per cent
Kimberlite Frontier Africa Naster Fund 6.15 per cent
2 undisclosed Institutional Investors 3.22 per cent
SSB-Conrad N. Hilton Foundation 0.98 per cent
Vanderbilt University 0.87 per cent
Blakeney Management 0.63 per cent
Retail investors 11.19 per cent
BoU staff retirement benefit scheme is 0.59 per cent


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