BoU places EFC Uganda Under Liquidation, License Revoked & Ordered To Wind Up Operations
- Business Economy
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EFC microfinance is licensed and supervised by Bank of Uganda
The Bank of Uganda has effective today Jan.19, placed EFC Uganda Limited under liquidation, revoked its license, and ordered the winding up of its operations.
This is in the exercise of its powers under Sections 72 (1) and 12 (1) (d) & (g) of the Microfinance Deposit-taking Institutions (MDI) Act, 2003 as amended.
“This action has been taken because Bank of Uganda has determined that the continuation of EFC Uganda Limited’s activities is detrimental to the interests of its depositors due to the institution’s failure to resolve its significant undercapitalization and poor corporate governance,” Michael Atingi-Ego, the Deputy Governor, Bank of Uganda, said.
He says the Bank of Uganda and the Deposit Protection Fund of Uganda will inform depositors of the arrangements that will be put in place to enable them to access all of their deposits.
“All other creditors are requested to submit their claims to the Office of the Director Financial Stability, Bank of Uganda within 30 days from the date of this statement,” Atingi-Ego said today.
He added: “All borrowers of EFC Uganda Limited must continue to service their loan obligations by making payments at Bank of Uganda offices and branches. Any person possessing the property of EFC Uganda Limited should deliver it to the Bank of Uganda and hand it over to the Office of the Director, Financial Stability.’
BoU says per Section 69 of the Act, no steps may be taken by any person to enforce any security over the property of EFC Uganda Limited (MDI), and no other proceedings or execution of legal process may be commenced or continued against the institution or its property.
Available information indicates that EFC’s shareholders consist of a group of world organizations including Development international Desjardins (DID), which is a subsidiary of Desjardins Group (the leading financial cooperative group in Canada and sixth largest in the world), AfricInvest Financial Sector Limited (AFS), the Belgian Investment Company for Developing Countries (BIO), and Uganda Gatsby Trust.
