dfcu Bank secures key victory as PwC reports on Crane Bank mismanagement admitted in English court
Critically, the Court dismissed an attempt by Crane Bank Limited to prevent the PwC reports from being included in the case.
dfcu Bank has secured a significant procedural victory in the English High Court, as detailed reports compiled by PricewaterhouseCoopers (PwC) were officially admitted as evidence in the ongoing legal proceedings initiated by Crane Bank Limited (CBL) and others.
Critically, the Court dismissed an attempt by Crane Bank Limited to prevent the PwC reports from being included in the case. Crane Bank’s legal team had argued that PwC, which was instructed by the Bank of Uganda to undertake a forensic audit of Crane Bank, was not part of the globally recognized PwC firm, and that its reports would be inadmissible as a matter of law to prove any primary fact. These arguments were rejected by the Court.
Justice Paul Stanley noted that the extensive PwC reports, spanning over 150 pages and covering events from the early 2000s, contain findings that, if accurate, could be described as serious. These findings point to various instances of mismanagement within Crane Bank, including:
The creation of a deliberately false impression on its balance sheet.
Disguising the identity of shareholders.
Improper diversion of bank funds.
“Sweetheart deals” with insiders.
The judge further commented that, if proven accurate, these findings indicate management practices inconsistent with what “any sensible regulator would wish to see operating a strategically important bank.”
In a related development during the proceedings, the Court issued orders for key individuals to disclose information. Sudhir Ruparelia was ordered to surrender his mobile phone for expert forensic analysis to determine the presence of potentially relevant documents. Additionally, Sheena Ruparelia was directed to disclose materials from her personal email account.
dfcu Bank has consistently maintained that the claims brought against it are without merit. The bank continues to assert that it acted lawfully throughout the process of its acquisition of Crane Bank Limited.
The bank has reiterated its commitment to defending itself vigorously in the ongoing legal dispute, while upholding international standards of ethical conduct and strong governance.
