While in receivership there remains some hope of the company recovering and resuming operations, now the liquidation means Crane Bank's complete and permanent closure, a move that will see the defunct lender's chapter closed for good.
The Central Bank as a liquidator issued a statement on Friday. A liquidator is an officer or entity who is appointed to wind up the affairs of a company when it is closing and this usually happens when the company has gone bankrupt.
The report indicated that an analysis of the Banks liquidity from 1st January to 24th January 2017 revealed that the financial institution had recovered from liquidity distress from mid-January 2017 to the time it was disposed on 25th January 2017.
The lawyers from MMAKS Advocates were paid USD 230,000, which translated into 759 million Shillings at the 2017 exchange rate, for services relating to the transactions by the Central Bank in the closure and sale of Crane Bank Limited.
Kasaija told the committee chaired by Bugweri County MP Abdu Katuntu that before the bank closure, he raised Sudhir on phone urging him to sell some off some of his properties and not to let the bank sink. The Minister said that Sudhir did not heed to his advice responding that he was tired of the bank.
The committee on Commissions, Statutory Authorities and State Enterprises COSASE has directed the Auditor General to carry out an audit into the Shillings 478 billion injected into Crane Bank Limited by the Central Bank.
The Auditor General queried the failure by the Central Bank to prepare a plan to revive Crane Bank and the consideration of 200 billion Shillings from the bad books as the selling price for Crane Bank to DFCU Bank.