DFCU accused of trying to take over Meera Investments properties

DFCU has been put in a spot of bother over allegations that it transferred 48 properties that belong to Meera Investments into its name before court rules on their ownership.

In a leaked letter dated document dated May 8, 2017, it was discovered that the bank had embarked on the process of transfer of titles under Meera Investments with the help of Sebalu and Lule Advocates.

Court barred the advocates were barred from participating in another matter regarding Crane Bank citing conflict of interest.

“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 part of the document.

Since there was no consent from Meera Investment regarding the transfer, experts fear that the whole procedure was entangled in fraud.

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.

In the Asset Purchase Agreement between BoU and Dfcu, BoU had 24 months to recover the properties from Meera.

If Bank of Uganda failed to recover the properties within 24 months, DFCU would rescind the purchase of the leasehold properties and return them to BoU.

BoU would in return refund a portion of the purchase price equivalent to the value of the 48 properties.

Most of the 48 properties housed branches of Crane Bank across the country.

When Bank of Uganda controversially sold the bank to DFCU in 2017, the bank took over the properties.

In fact, there is an ongoing case in court where bank of Uganda wants Crane Bank to handover the 48 properties as part of the sale agreement with DFCU.

But Meera Investments in a counter suit argued that in fact DFCU owes it at least $8.6 million in unpaid rent over the continued use of 46 out of 48 properties.