East African Business Week

KAMPALA, UGANDA- Tropical Bank, a bank that was owned by Libyan leader Muammar Gaddafi in Uganda announced last week that it had recovered from the tremors that were created by the UN sanctions on Libya.
The sanctions led to the eventual takeover of the bank by the Bank of Uganda.
Prince Kassim Nakibinge the Bank’s acting managing director told journalists in Kampala on Friday that though they registered a 5% deposit loss during the period, the company has managed to record Ushs114b in total deposits by Wednesday last week.
Before the Bank of Uganda takeover, Tropical Bank registered around Shs113b in deposits. This Nakibinge indicated was a sign of recovery.
“We want to assure our customers and intending customers that they should not panic. They should instead open new accounts. The bank is well capitalized and is able to serve them,” assured Nakibinge.
A week earlier, the Bank of Uganda had announced that it had taken over the management of Tropical Bank, one of the assets with ties with the Libyan government.
The Libyan Foreign Bank, that used to appoint the top management of the Tropical Bank, ceased powers to appoint top management and the running of the bank. The powers for the BOU to take over Tropical Bank are provided for in the 2004 Financial Institutions Act of Uganda.
Nakibinge while parading senior business moguls in Kampala, who are customers of Tropical bank, affirmed that the bank is very strong.
Among the moguls were Mr Guster Lule of Ntake bakeries, Mr Omar Mandela of the City Tyre/Cityoil companies, Mr Medi Ssebagala of Ssebagala and Sons, Mr Moses Katongole chairman UTODA, Hajjat Nulu Kiyimba of Brovad Hotel and the owner of Hared petroleum in Uganda.
“I have also affirmed my members not to panic and withdraw their money,” Moses Katongole said.
Nulu Kiyimba was greatful that the bank is still in a resounding situation to serve their customers on top of the panic that was created to them.
Lule said he was confident that the bank is able to serve him.
The Ugandan government has seized many Libyan companies following the UN sanctions.