Bank of Uganda (BoU) could pay upto 120 billion as the battle with city tycoon Sudhir Ruparelia following the commercial court decision to throw out a case in which Bank of Uganda/Crane Bank (in receivership) had sued Sudhir seeking to recover Shs 397 billion.
Bank of Uganda, through their new attorney Dr. Joseph Byamugisha of Byamugisha & Co Ltd have since chosen to file an appeal, but according to legal experts, with the Central Bank condemned to legal costs for a case before the High Court, BoU is expected to compensate Sudhir with at least UGX. 19b and his Meera Investments Ltd would also claim another UGX. 19b, with the whole bill expected at 36b.
Since Bank of Uganda has already indicated that it will appeal the ruling, the legal costs will go higher in the event that they lose. Legal sources said the figure could shoot to at least 120 billion since percentages at the court of appeal are higher. This money will be met the tax payer.
2019 has not been a good year for Bank of Uganda. Two reports, one from COSASE and another from a team appointed by the president recommended changes in the operation of the central bank.
Then the bank got embroiled in the currency saga where some of its staff were arrested.
This week, the bank suffered legal defeat in court.
