By Our Reporter
NATIONAL
The Deposit Protection Fund of Uganda (DPF) has paid at least 76% of the insured depositors of the closed EFC Uganda Limited.
DPF made the revelation in a statement issued today, 25th April, 2024 and signed by the Managing Director, Dr. Julia Clare Olima Oyet saying, “As of April 24, 2024, 76% of the insured depositors of the closed EFC Uganda Limited had been paid.”
The Fund also informs the depositors not yet paid to go to their offices at AHA Towers, Level 6, Plot 7, Lourdel road in Kampala City before the 31st May, 2024.
“All payments previously handled at Stanbic Bank, Lugogo Branch will henceforth be processed at DPF offices,” reads the statement in part.
EFC Uganda Limited was closed by the Bank of Uganda in January, 2024 for failing to meet minimum capital requirements and for what it called “poor corporate governance.”
Bank of Uganda said it had placed the microfinance deposit-taking institution under liquidation, revoked its licence, and ordered it to wind up its affairs.
The Deposit Protection Fund (DPF) was then assigned to inform depositors of the microfinance institution about the arrangements that will be made to allow them to access their funds.
Depositors with funds exceeding the Shs10mn insurance cap will be paid by the liquidator after the assets of EFC Uganda have been sold off, according to DPF. The payment amount will depend on the recoveries made.
However, payment to these large depositors will only occur after insured depositors and secured creditors have been paid, as well as after the liquidator has been reimbursed for expenses incurred during the liquidation process, and employees have received all due wages and salaries.
BoU also requested anyone in possession of property belonging to EFC Uganda to hand it over to the office of the director of financial stability.
