Bank of Uganda scandals: South African law firm Bowmans summons lawyer Mpanga

y Our Reporter

Mpanga, of AF Mpanga Advocates-Bowmans is in trouble because of his involvement in some of the scandals that have engulfed Bank of Uganda (BoU).

South Africa based law firm Bowmans which have an outlet in Kampala to which Mpanga is affiliated has summoned Mpanga to explain why he decided to work with (BoU) in the case where the central bank sued Sudhir Ruparelia and Meera Investments Limited, well knowing that he at one time worked for the businessman who runs a chain of companies under the Ruparelia Group. High Court has barred Mpanga from representing BoU or any entity in a case where the businessman is involved.

Mpanga advised BoU in the transfer of Crane Bank Limited’s assets to DFCU Bank at Shs200 billion where he earned about Shs4 billion as legal and transaction advisor. BoU claims it injected Shs478 billion in Crane Bank receivership before transferring some of its asset5s to DFCU Bank.

He was one of the lawyers that misadvised BoU through Crane Bank In Receivership to sue Sudhir for recovery of Shs397 billion allegedly swindled from Crane Bank Limited. Sudhir would apply to court praying that that Crane Bank In Receivership had no right to sue him and court agreed with him. Now BoU is to pay Sudhir over Shs70 billion in damages and legal costs.

Business analysts however wonder why Mpanga, an experienced lawyer, was part of the legal officers who drafted a bad case that left a legal gap and huge financial loss for BoU.

Mpanga and his associate Timothy Masembe of MMAKS were last year dropped by BoU as their legal representatives against Sudhir after court ruled they had conflict of interest, having earlier on been employed by Sudhir.

Sudhir Ruparelia who formerly owned Crane Bank dragged the duo to court because they had worked for him and his companies and before crossing over to BoU and turning against him, which made them guilty of conflict of interest.

Against that background BoU last year in November hired a new law firm Sebalu and Lule advocates to replace Mpanga and company but was also dropped on the same reasons like Mpanga and Masembe.

 “The recent ruling in the Commercial Court also shows he rendered incompetent advice to Bank of Uganda, because he of all people should have known that a Receiver under FIA 2004 cannot sue, said an analyst.

This is because Mpanga’s actions contravene the regulations of Bowmans which state that “Bowmans spares no effort in striving to conduct business in a responsible, ethical and sustainable manner. Honesty, integrity and fair dealings are central to our engagement with our clients and other stakeholders.”