Despite the Bank of Uganda (BoU) publicly stating that it has spent only Shs300 million as court filing fees in the ongoing legal battle with tycoon Sudhir Ruparelia, leaked documents indicate that BoU has so far paid MMAKs Advocates (its external lawyers) over shs3.5bn (of tax payers’ money) even before the case kicks off.
According to documents leaked to the media, BoU paid out a total of US$804.094 to law firm MMAKS Advocates in December 2016 and May 2017 in respect to Crane Bank, in transactions initiated by Citi Bank in New York, with Barclays Bank PLC in New York as the ‘intermediary institution’ and the BoU as the ‘ordering customer’ referenced as number 099276065.
The money was paid in two installments, with the first disbursement of US$166, 796 paid out as ‘professional fees’ on December 14, 2016 under sender’s (Citi Bank) Ref. No. 991FOCT163490002 and, according to a ‘Tax Invoice/Debit Note/ Pro forma Invoice’ by MMAKS Advocates dated November 28, 2016 and titled ‘Transaction Advice IRO to take over of Crane Bank Limited’, the law firm sought $251,045, around Shs916million as ‘professional fees’ at the ‘pre take over stage on the intervention in Crane bank Limited’ (“CBL”), and of the said money the first disbursement of US$166.796 is made reference to, leaving an outstanding balance of US$75, 313.
Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates were also responsible for recommending the suitable mode of disposal and draft, negotiate and conclude the requisite sale documentation and progress the matter to a successful conclusion. Exercising its powers under Section 87(3), 88(1)(a) & (b) of the Financial Institutions Act 2004, Bank of Uganda successfully took over Crane Bank of which it later sold to DFCU Bank.
With the track of these classified files, it shows that early as November 2016, Masembe, Makubuya, Adriko and Ssekatawa (MMAKS) Advocates had already planned with Bank of Uganda to sale Crane Bank.
It should be noted that Timothy Masembe Kanyerezi of MMAKS Advocates and David Mpanga from FK Mpanga and Company Advocates were previosly lawyers of Crane Bank.
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