Parliament will later today debate a motion seeking to initiate investigations into Bank of Uganda’s expenses to hire two law firms to defend the bank in a case against city tycoon Sudhir Ruparelia, in a case involving the Crane Bank that is now in receivership.
Listed as item No.4 on the Order Paper, Parliament will seek to constitute a select committee to inquire into why the BoU paid a humongous figure of Shs2.8 billion to MMAKS and AF Mpanga Advocates. The money was paid in two installments, with Shs1.3 billion paid last year, while Shs1.5 billion was paid in the current financial year.
Yesterday, the Committee on Commissions, Statutory Authorities and State Enterprises led by Bugweri MP Abdu Katuntu quizzed BoU Governor Emmanuel Tumusiime-Mutebile and the central bank’s Director of the Legal Department for paying the billions to external lawyers despite having a full-fledged legal department ‘with the best lawyers in the country’.
According to Katuntu, the BoU is well-facilitated and has opportunity to train its own lawyers which can help the bank avoid spending on external lawyers. “You would rather grow your own capacity,” he said.
The two external law firms came in the spotlight after Mr. Ruparelia accused lawyers Timothy Masembe Kanyerezi and David Mpanga, of MMAKS and AF Mpanga Advocates respectively, of conflict of interest in the Crane Bank case that is now before the Commercial Division of the High Court.
Mr. Ruparelia wants the two law firms off the case, saying they were previously hired by the Crane Bank where he was a Director, and are therefore privy to sensitive information obtained during the period they were hired by the bank.
