dfcu Bank has achieved a significant procedural victory in the ongoing legal dispute with Crane Bank Limited (CBL) and others before the English High Court. The Court has dismissed a crucial attempt by Crane Bank Limited to exclude extensive forensic reports prepared by PricewaterhouseCoopers Ltd (PwC) from the proceedings.

The ruling allows for the inclusion of the detailed PwC reports as admissible evidence, a decision that could significantly impact the trajectory of the high-stakes case. Crane Bank’s legal team had sought to challenge the admissibility of these reports on two principal grounds: firstly, arguing that PwC, which was instructed by the Bank of Uganda to undertake a forensic audit of Crane Bank, was not part of the globally recognized PwC firm; and secondly, contending that the PwC reports would be inadmissible as a matter of law to prove any primary fact.

Justice Paul Stanley firmly rejected both arguments, paving the way for the reports to be considered by the Court. Justice Stanley highlighted the gravity of the findings within the PwC reports, which span over 150 pages and cover a broad period, including events from the early 2000s. He noted that these findings, if accurate, “can fairly be described as serious,” pointing to widespread mismanagement within Crane Bank in several critical areas:

• Creation of a deliberately false impression on its balance sheet.
• Disguising the identity of shareholders.
• Improper diversion of bank funds.
• Sweetheart deals with insiders.

The judge further underscored the potential implications of these findings, stating that such practices are “inconsistent with what any sensible regulator would wish to see operating a strategically important bank.”

In a notable related development, the Court ordered Sudhir Ruparelia to surrender his mobile phone for expert forensic analysis. This measure aims to determine whether the device contains potentially relevant documents pertinent to the ongoing case. Additionally, Sheena Ruparelia was directed by the Court to disclose materials from her personal email account.

Throughout these proceedings, dfcu Bank has consistently maintained that the claims against it are entirely without merit. The bank reiterates its long-standing position that it acted lawfully and with due diligence throughout the process of its acquisition of Crane Bank Limited.

dfcu Bank has affirmed its dedication to defending itself vigorously against these claims, while upholding international standards of ethical conduct and strong corporate governance. The bank remains confident that its actions will ultimately be vindicated as the legal process continues.