The license of EFC Uganda Limited, a microfinance deposit-taking institution in Uganda, has been revoked, Michael Atingi-Ego, the Deputy Governor of Bank of Uganda announced in a statement on Friday.

The Deputy Governor also reveals that EFC Uganda has been ordered to wind up its activities and operations. Basically, EFC Uganda has been put under liquidation.
The Central Bank derives its power to take such action from Sections 72 (1) and 12 (1) (d) & (g) of the Microfinance Deposit-taking Institutions (MDI) Act, 2003 as amended.

Atingi-Ego said the 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.

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, Atingi-Ego further said.

Adding: “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.”

Bank of Uganda encouraged all borrowers of EFC Uganda Limited to continue servicing their loan obligations by making payments at Bank of Uganda offices and branches.

It said any person possessing property of EFC Uganda Limited should deliver it to Bank of Uganda and hand it over to the Office of the Director, Financial Stability.

Atingi-Ego said: “In accordance with 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.”