The Institute of Certified Public Accountants of Uganda (ICPAU), a body established by government to regulate professional accountants in the country has said it will crack the whip against all accountants that are found culpable in the Crane Bank scandal.
Speaking at the ongoing 5th CPA Economic Forum in Entebbe, the ICPAU President Protazio Begumisa said those found culpable would among other punishments, lose their professional practicing certificates.
“If any member is found culpable, we will hand them over to the disciplinary committee; they will be punished in accordance to the laws that govern us (accountants). Their practicing licences might be withdrawn or we will fine them,” Begumisa said.
He was reacting to recent reports indicating that Bank of Uganda suspended audit firm Ernst & Young Uganda from auditing any commercial bank this year.
Reports indicate the suspension is related to the current Crane Bank scandal in which billions were reportedly mismanaged.
It is reported that the suspension of Ernst & Young, a global auditing firm came on the heels of a forensic audit that showed the firm’s staff had helped Crane Bank hide critical information from other auditors and the regulators.
The firm’s country leader Geoffrey Byamugisha admitted they had been suspended, but denied the suspension is related to the Crane Bank scandal.
“The good thing is, Ernest & Young has come out and clarified – it was never involved in the mess. The only problem at the moment is, that its name had already been damaged,” said Begumisa.
Bank of Uganda recently filed a case in court against former Crane Bank owner, Sudhir Ruparelia, accusing him of fraudulently taking out $92.8m (about Shs334b) and another Shs8.2 billion of depositors’ money from Crane Bank for personal gain.
BoU further alleged that Sudhir and his associates Vivek Sharma and Rakesh Gupta created false invoices to bill Crane Bank for activities that did not happen.
