Incompetence: BoU hired lawyers weren’t aware that an institution under receivership can’t be sued and can’t Sue.


Let me check how much was paid to the first lawyers that filed a lawsuit against Sudhir, the figure is around 1.2 billion shillings for a case that never should have been filed at least according to the law.

Why do I say this case shouldn’t have been filed in any court under Ugandan law, institutions in receivership can’t be sued and therefore can not sue. Meera investment vs URA the justices of the Supreme Court ruled that Since URA can’t be sued it cannot also sue, the same law/decision applies to an institution under receivership in this case Crane Bank in receivership.

Powers of a receiver are clearly mentioned under section 95 of the Financial Institutions Act as followers

1. Arrange merger with another financial institution
2. Arrange the purchase of assets and assumption of all or some of the liabilities
3. Arrange to sell the financial institution
4. Liquidate assets of the institution under receivership

Share Button

This post has been seen 2078 times.

Related posts