Crane Bank takes over Stanhope
CRANE Bank has purchased all assets of Stanhope Finance Company and assumed all its liabilities following an approval by Bank of Uganda (BOU).
By James Odomel
CRANE Bank has purchased all assets of Stanhope Finance Company and assumed all its liabilities following an approval by Bank of Uganda (BOU).
In a Tuesday statement, Crane Bank chairman Samson Muwanguzi said, “The shareholders of Crane Bank Limited and the shareholders of Stanhope have approved the terms of an agreement for the sale of assets and assumption of liabilities excluding tax and NSSF dues if any of Stanhope Finance Company Limited by Crane Bank Limited.â€
The statement said all Stanhope’s offices and branches will remain open and continue to serve customers as branches of Crane Bank.
“By operation of the Financial Institutions Act 2004, all assets of Stanhope including loans and advances to customers are now vested in Crane Bank Limited as if such assets had been originally acquired or contracted by Crane Bank Limited,†Muwanguzi said.
He said similarly, all liabilities excluding tax and NSSF dues if any of Stanhope including customer deposits are now vested in Crane Bank Limited as if such liabilities were originally incurred by Crane Bank Limited.
Crane Bank applied to BOU in April to take over Stanhope Finance Company and Forex Bureau.
Stanhope has in the past one year been dogged by a series of financial problems that started with the irregular transfer of large sums of foreign exchange from the company.
In another incident in June 2005, the company lost money when a manager of Lanex Forex Bureau reportedly obtained sh35m from it by allegedly forging a savings account passbook.
In November, the Uganda Chinese Overseas Association petitioned BOU to suspend Stanhope’s license “to protect the public from fraud.â€
The association accused Stanhope of being an associate of Lanex, which BOU had closed.
Muwanguzi assured Stanhope Finace Company customers of continued “smooth and uninterrupted services.â€
CRANE Bank has purchased all assets of Stanhope Finance Company and assumed all its liabilities following an approval by Bank of Uganda (BOU).
In a Tuesday statement, Crane Bank chairman Samson Muwanguzi said, “The shareholders of Crane Bank Limited and the shareholders of Stanhope have approved the terms of an agreement for the sale of assets and assumption of liabilities excluding tax and NSSF dues if any of Stanhope Finance Company Limited by Crane Bank Limited.â€
The statement said all Stanhope’s offices and branches will remain open and continue to serve customers as branches of Crane Bank.
“By operation of the Financial Institutions Act 2004, all assets of Stanhope including loans and advances to customers are now vested in Crane Bank Limited as if such assets had been originally acquired or contracted by Crane Bank Limited,†Muwanguzi said.
He said similarly, all liabilities excluding tax and NSSF dues if any of Stanhope including customer deposits are now vested in Crane Bank Limited as if such liabilities were originally incurred by Crane Bank Limited.
Crane Bank applied to BOU in April to take over Stanhope Finance Company and Forex Bureau.
Stanhope has in the past one year been dogged by a series of financial problems that started with the irregular transfer of large sums of foreign exchange from the company.
In another incident in June 2005, the company lost money when a manager of Lanex Forex Bureau reportedly obtained sh35m from it by allegedly forging a savings account passbook.
In November, the Uganda Chinese Overseas Association petitioned BOU to suspend Stanhope’s license “to protect the public from fraud.â€
The association accused Stanhope of being an associate of Lanex, which BOU had closed.
Muwanguzi assured Stanhope Finace Company customers of continued “smooth and uninterrupted services.â€