DFCU Bank is embroiled in a legal dispute with Ugandan-Canadian businessman Dennis Daniel Ssemugenyi, following the freezing of his accounts, a move that has triggered allegations of sabotage and questionable practices.
Ssemugenyi, a prominent investor and philanthropist, claims the freeze has severely impacted his business operations and charitable efforts in Uganda, raising concerns about the bank’s motives.
Ssemugenyi, who co-founded the Dennis Daniel Investment Group (DDIGL) ten years ago, has been a key player in Uganda’s development scene, with investments spanning real estate, agriculture, infrastructure, and more.
His charitable work includes funding the education of over 1,000 children. The businessman opened accounts with DFCU in 2018 to manage his investments and philanthropic ventures.
Frozen Accounts and Suspected Sabotage
In 2018, Ssemugenyi opened accounts with Dfcu Bank to facilitate his investments in Uganda and manage his charitable endeavours. However, in 2020, he applied for a mortgage loan of UGX 226 million through Dfcu to purchase a condominium in Kampala for his Australian-based relative, securing the loan with two properties in Wakiso District.
Despite repaying more than half of the loan within two and a half years, far earlier than the 13-year repayment period, Ssemugenyi alleges that Dfcu failed to release his property titles, the latter arguing that he had not formally requested the documents, a claim he disputes. Ssemugenyi says he never needed to appear in person to secure the loan initially.
The situation worsened in July 2023 when Ssemugenyi discovered his accounts had been frozen. The bank cited Uganda’s requirement for national ID verification and claimed that large transactions exceeding $2 million triggered concerns over money laundering.
However, Ssemugenyi contends that the freeze is linked to his company’s growing interest in government projects, alleging that DFCU officials demanded bribes to unlock his accounts. He asserts that despite the freeze, the bank continued to withdraw funds from his accounts without his consent.
The frozen accounts, according to the investor, have led to significant setbacks for both his business and charitable ventures. Key projects, including a factory in Semuto and an agro-processing plant in Nakaseke, have stalled, while hundreds of children relying on his scholarships are left in limbo.
Ssemugenyi suspects a possibility of foul play by individuals within the bank, possibly colluding with external actors, who have reportedly solicited bribes to unfreeze his accounts.
Appeals to ISO, Gen. Saleh, and FIA
In response, Ssemugenyi petitioned the Internal Security Organisation (ISO) and sought intervention from Gen. Salim Saleh, pointing to the bank’s actions as economic sabotage. His appeal outlines how the account freeze disrupts crucial infrastructure and social projects in Uganda, hindering national development goals.
Ssemugenyi also reached out to the Financial Intelligence Authority (FIA) for clarification on the freeze, receiving a request from FIA for detailed transaction documentation. However, DFCU’s subsequent explanations for freezing the accounts have shifted, deepening his suspicions of fraudulent intent.
Dfcu Responds
In a statement to the press, DFCU Bank acknowledged the account freeze, citing compliance with a court order. The bank affirmed its commitment to legal obligations but refrained from providing detailed comments, citing the ongoing nature of the legal matter.
For Ssemugenyi, the ordeal with DFCU Bank has left his investments and philanthropic initiatives in Uganda in jeopardy. As he continues to fight for access to his funds and property titles, the future of his ventures and the lives of many Ugandans who depend on his support hang in the balance.
