On the 20th of October 2016 , Bank of Uganda suspended the Board of Directors of Crane Bank Uganda limited and took over management of the bank. On the same day Bank of Uganda appointed a statutory manager of the bank.
But what exactly does the statutory manager do; Section 90 (4) of the Financial Institutions Act 2004 provides among the many roles of a statutory Manager the role to;
• Trace and preserve all the property and assets of the institution he or she is appointed to administer.
• Recover debts and other sums of money due and owing to the financial institution he or she is appointed to administer.
• Evaluate the capital structure and management of the institution and recommend to the Central Bank any restructuring or re-organisization which he or she considers necessary .
• Enter into contracts in the ordinary course of business of the financial institution.
• Obtain from any officers or employees of the financial institution any documents, records , accounts, statements or information relating to its business.
• Issue new balance sheets, profit and loss accounts of the financial institution.
Do you think the appointed Statutory Manager will enable Crane Bank Limited regain economic and financial stability?