Dfcu Bank Names New Director Amidst Liquidity Crisis

By Max Patrick Ocaido

The Development Finance Company of Uganda Bank popularly known as "dfcu Bank" has appointed a new director following the recent controversial resignation of Deepak Malik.

Deepak Malik who has been a director on the board of Dfcu bank resigned and left the board of the bank on September 21, 2018, according to an internal memo.

According to a notice released by the Bank on Tuesday, the Board of Directors has named a new director, Friedrich Christian Pelser.

“The Board of Directors of dfcu Limited (“the Company”) is pleased inform its shareholders and the general public that Mr. Friedrich (Fred) Christian Pelser has been appointed as a director in the Company to fill a casual vacancy following the resignation of Mr. Deepak Malik with effect from the 22nd of October, 2018,” the notice reads.

Pelser is a Chartered Accountant with 16years work experience and is currently working as a senior Investment manager, with Arise B.V.

“He [Pelser] has extensive experience in investment banking and private equity which he brings to the Board. His appointment demonstrates the commitment of Arise BV in dfcu’s continued growth,” the notice adds.

Mass exodus of top staff at dfcu has been the order of the day ever since a Kenyan human resource consultant was brought in the restructuring process. Arise BV is the majority shareholder in dfcu bank with 58.71% after lending US $50 million in February 2017. The money was to help dfcu Bank meet its short-term capitalisation needs after it controversially took over Crane Bank in January 2017.

Ever since Bank of Uganda controversially handed over Crane Bank to dfcu in January 2017, the latter has struggled and reportedly slipped to liquidity crisis and cannot apparently ensure smooth flow of cash to the satisfaction of its clients. 

However, Dfcu Bank management recently denied reports that the Bank has suffered liquidity shortage saying that, “The Bank remains resolute in delivering on the dfcu brand promise of ‘making more possible’ and pursuing its strategic business objectives.