Businessman Sudhir Ruparelia and other former Crane Bank owners are seeking at least €200 million (about Shs896bn) in damages in a London court case against Rabobank and two of its former senior executives over their alleged involvement in the disputed sale of the Ugandan lender.
The claim, valued at approximately Shs896 billion, adds another international dimension to the legal battle surrounding Crane Bank’s takeover and subsequent sale to dfcu Bank. Lawyers for the former owners expect the amount sought to increase when the case’s hearing begins on Monday.
Bank of Uganda placed Crane Bank under statutory management in October 2016, citing undercapitalisation. In January 2017, the central bank transferred its assets and liabilities to dfcu Bank.
dfcu Bank is indirectly owned by investors that include Rabo Partnerships, a Rabobank subsidiary, and the Dutch development bank FMO. Norway’s development investor Norfund also holds a stake.
The claimants allege that Rabo Partnerships, and former Rabobank executives Albert Jonkergouw and Willem Cramer approved the transaction despite warning signs. Both executives served on dfcu’s board.
Speaking to leading Dutch financial newspaper Het Financieele Dagblad, Dr Sudhir accused the Bank of Uganda of orchestrating a corrupt scheme to dispossess him of the bank. He alleged that dfcu, Rabobank, Norwegian investors and other defendants assisted in the transaction and benefited from it.
At the centre of the allegations is an email that the claimants say Jonkergouw and Cramer received in late 2016. According to their account, it indicated that $27.5 million from the sale of a portfolio of Crane Bank loans would be paid to the central bank without being recorded. The claimants characterise the alleged payment as a bribe.
They also contend that dfcu acquired Crane Bank without an independent valuation. Their case alleges that the Bank of Uganda approached dfcu before placing Crane Bank under statutory management and offered the lender at a price substantially below its market value.
These allegations remain subject to determination by the court.
Rabobank and the other defendants declined to comment while proceedings are ongoing. Lawyers for Jonkergouw and Cramer, as well as the Bank of Uganda and Dutch development bank FMO, also declined to comment.
FMO, which is not a defendant, is among the investors linked to dfcu’s ownership, alongside Rabo Partnerships and Norway’s development investor Norfund.
The dispute follows years of scrutiny of the central bank’s handling of Crane Bank. In 2019, Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises criticised the sale and concluded that the Bank of Uganda had breached the law in several respects.
The claimants also refer to the United States bribery conviction of Hong Kong intermediary Patrick Ho, who acted for a Chinese conglomerate. They allege that the conglomerate had initially been offered Crane Bank by the central bank and that dfcu became involved after that proposed arrangement collapsed.
Ruparelia and the other former owners have obtained internal emails, presentations and confidential documents from the opposing parties as part of the proceedings.
They are represented by Greenberg Traurig. Ruparelia told the Dutch newspaper that he had already spent tens of millions of dollars pursuing the case.
dfcu is represented by Freshfields, its shareholder Arise by A&O Shearman, and Rabobank by Milbank.
Sudhir has already secured several victories in local Ugandan litigations involving Bank of Uganda and dfcu over the Crane Bank sale.
