In-charge of Bank of Uganda Governor Emmanuel Tumusiime- Mutebile

Authorities are grappling with revelation that China put a spying bug in Bank of Uganda tapping all the transaction and conversations.

Eagle Online has reliably learnt the spying device was installed in the bank three years ago and during its installation, electricity at the bank was constantly switched off to enable the fixing of the bug without the notification of workers.

This website understands that in what looks like a calculated move, it is a few top individuals at the bank knowledgeable about the bug.
“This system was discovered recently and we don’t know when it was fitted into the bank and we don’t at what level our information has been spied on. We know fear transaction anything in offices” said a source. Adding “This could have been the work of mafias as the governor himself isn’t aware”.

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The revelation has taken security by surprise because there is fear the approach could spoil the already good relations Uganda and China enjoy. Insider information obtain by indicate that the installation could have work of a top official at the central bank. It is said that in trying to compete with World Bank in funding several projects and the transactions, the gadgets could have been fixed for that purpose.

The revelation come at the time when BoU is under spotlight after it was revealed in Auditor General’s report that liquidated and sold International Credit Bank (ICB), Greenland Bank and Cooperative Bank, it would also go ahead to sell loans worth Shs135 billion, including secured loans worth Shs34.5 billion, at a discount of an amazing 93 per cent.
That transaction was revealed by the Auditor General’s (AG) recent confidential report of BoU on seven defunct commercial banks.

“In the case of ICB, Greenland Bank and Cooperative Bank the total loan portfolio sold of Shs135 billion included Secured loans of Shs34.5 billion which had valid, legal or equitable mortgage on the real property and were supported with legal documentation but were sold to Nile River Acquisition Company at a 93 per cent discount,” the AG John Muwanga said in the report he did at the request of parliament.

Members of Parliament requested the audit of BoU in the sale of defunct banks following public outcry against BoU’s sale of banks without proper due process and the Auditor’s finding in the report will form part of grounds MPs will stand on to further question BoU top managers who spearheaded the sale of the banks.

According to the report, a sum of Shs96.431 billion was contributed by the Deposit Protection Fund (DPF), Government of Uganda and BOU towards settling the insured and uninsured depositors of Cooperative bank, ICB and Greenland bank and was to be refunded following the sale of assets of the closed banks. However, the report by the AG noted that only Shs28. 055 billion was refunded by the liquidator (BoU) leaving a balance of Shs68.376 billion.

However, the AG’s report notes that the transaction was messy as guidelines were not followed. I observed that there were no guidelines/regulations or policies in place to guide the identification of the purchasers of GTBU. There were also no guidelines to determine the procedures to be adopted by the Central Bank in the sale of assets and transfer of assets or liabilities of the defunct banks to Dfcu.

The AG Muwanga furthers says in the report that he was not provided with records of the procurement process to ascertain the bid requirements, offers made, list of bidders, evaluation criteria, evaluation report and negotiation minutes leading to the P&A agreement.