By Ruth Anderah.
The governor Bank of Uganda Tumusiime Mutebile has said that the collective termination over 400 former employees of Crane Bank was done in accordance with the law.
In his letter to the ex employees, the governor says Bank of Uganda is ready to defend itself should the employees proceed to Courts of law.
On 23 October the ex employees of crane bank gave Bank of Uganda 45 days within which to pay to them 48 billion shillings for loss of their employments
Through their lawyer Isaac Semakadde the employees served the Governor of Bank of Uganda with a notice of intention to sue Bank of Uganda and DFCU Bank in case he fails to pay their money in the stated period.
The ex-workers led by Achan Catherine Kate contend that until 20 October 2016 they were employees of Bank and Bank of Uganda subsequently took over the management of the Crane Bank on ground that it was under capitalized as described by law and therefore posed a systematic risk to the stability of the finance system.
The claim that on 27 January 2017 Bank of Uganda notified the general public that it had transferred and conveyed the asset and liabilities of Crane Bank to DFCU subject to a purchase and takeover agreement that was fraud, unfair and allegedly concealed from the workers whose rights were affected directly by the takeover process.
The group says that according to the recent Auditor General’s report Bank of Uganda forced the closure of Crane Bank and other local banks and induced DFCU terminate all its employees.
The former employees contend that the move to close Crane Bank was in bad faith and in breach of Bank of Uganda’s duties under the constitution.
The ex employees want Bank of Uganda to pay 120 million shillings to each of them as compensation for the unlawful termination of their services with Crane Bank.