KAMPALA – The dfcu Bank board has finally announced the appointment of former Housing Finance Bank Managing Director Mathias Katamba as their new Chief Executive Officer.
Troubled dfcu Bank, facing public scrutiny over the controversial takeover of Crane Bank Ltd, a deal that has been flagged non-transparent by the Auditor General has been forced to look outside to replace Mr Juma Kisaame, who has been in the spotlight following the controversial transaction, that invited shareholder trouble for the institution.
In a notice in the newspapers on Wednesday, October 31, dfcu Bank Chairman Dr. Elly Karuhanga announced that Mr Katamba, a seasoned bank executive and current chairman of the Uganda Institute of Bankers would take over the reigns at the troubled financial institution, with effect from January 2, 2019.
“The Board is confident that he shall continue to grow the bank and build on the success of his predecessor,” Dr Karuhanga, who also issued a separate notice, announcing the expected departure of Mr Kisaame said.
“Mr Kisaame notified the Board of his intention to retire as Chief Executive Officer of dfcu Bank,” Dr. Karuhanga said.
Mr Katamba, at the weekend left his position at Housing Finance Bank, in what industry sources had earlier told this Online Newspaper, that he had been sought after to replace Mr Juma Kisaame, who is due to leave the dfcu Bank under a cloud, following shareholder troubles after the controversial takeover of Crane Bank, a transaction that has put the bank in the spotlight.
The Housing Finance Bank announced on Friday that Mr Katamba has left the institution, and was immediately replace by Mr. Micheal Mugabi.
Mr David Geoffrey Opio-Okello, Chairperson Board of Directors, Housing Finance Bank said the move would not affect the institution and wished Mr Katamba well in his future endeavours.
The new development is bound to unsettle Mr William Sekabembe, the number two in the hierarchy of the dfcu Bank, who weeks ago, only declined a lucrative offer to take over the position of Managing Director at KCB bank, citing personal reasons. However, it is understood Mr Sekabembe had been promised the CEO job.
In a September 5 letter to the head of human resources at KCB bank, Mr Sekabembe, who is the Chief of Business & Executive Director at dfcu Bank, a job he took over in October 2016 said he had changed his mind about moving to the competitor and will stay put at the troubled dfcu Bank, which is in the storm of the eye following the controversial takeover of Crane Bank in January 2017.
Mr. Sekabembe had been positioned to replace Mr. Kisaame, as the troubled executive weathered the storm following the botched up takeover of the Crane Bank, that has been faulted by the Auditor General.
Mr Kisaame found himself in the spotlight for his role in the takeover of Crane Bank after directors accused him of not carrying out enough due diligence, an issue that has caused turmoil in the running of the bank and unrest among its shareholders.
The last few months have seen CDC Group Plc, the bank’s second majority shareholder seek to sell their shares. Shortly after the CDC announcement, Deepak Malik, the CEO of Arise B.V; dfcu’s majority shareholder also resigned from the board.