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BoU top officials clash before Mps over Nile River Acquisition Company

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Bank of Uganda top officials have clashed over documents of Nile River Acquisition Company with the seasoned officials stating the only had an agreement with the company while Executive Director-Supervision, Dr. Tumubweine Twinemanzi insisted that there are other documents.

On Nile River Acquisition Company the officials said BoU only had an agreement with company, however, E Dr. Tumubweine said he would avail more documents on the company that acquired the assets of three banks (International Credit Bank, Greenland Bank and Cooperative at 93 per cent discount.
Last week, this website revealed that Nile River Acquisition Company (NRAC) to which Bank of Uganda (BoU) sold assets and liabilities of International Credit Bank (ICB) Limited, Greenland Bank and the Co-operative Bank at 93 per cent discount, paid Shs25, 000 as tax in Diamond Trust Bank on November, 2018.

“A search conducted on records revealed that the Nile River Acquisition is not reflected in our database. We therefore request for any documentation in your possession pertaining to the said name that can aid a further search,” said URSB’s Maureen Nabachwa on behalf the Registrar, Mr. Bemanya Twebaze.

Sources at Uganda Revenue Authority (URA) say the agency also doesn’t possess tax records of NRAC.

The unclear status of NRCA in Uganda raises questions as whether BoU carried due on the mysterious company that earned billions of shillings in profit as the central bank did away with Credit Bank (ICB) Ltd, Greenland Bank and the Co-operative Bank. BoU officials are expected to give more details of how they came into contact with the company as Cosase interfaces with them the coming week.

However, MPs on Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) have grilled top BoU bosses over the fraudulent sale of International Credit Bank (ICB) in 1998.

Also read: https://eagle.co.ug/2018/11/12/new-twist-as-nile-river-acquisition-isnt-registered-in-uganda-pays-shs25-000-tax-in-diamond-trust-bank.html


BoU Governor Emmanuel Tumusiime-Mutebile and his deputy Dr Louis Kasekende were asked why they closed ICB without conducting an inventory as demanded by law. The officials presented a list of items which they thought would make up an inventory but were rejected by the MPs.

Committee Chairman Abdu Katuntu said BoU acted outside the law when it closed ICB in 1998.

“What we are looking at is whether you exercised these powers in accordance with the law. Where we think that you have not done things according to the law, it’s our duty to tell you so,” Katuntu said.

To ensure that the officials stick to the truth, BoU Director Benedict Ssekabira and Henry Katimbo Mugwanya were put on oath.

The MPs were surprised that BoU officials didn’t have reports on the movement of assets after they took over ICB, Greenland and Cooperative Bank whose assets they sold to a mysterious company Nile River Acquisition at 93 percent as reported by the Auditor General John Muwanga in his special audit report of BoU on defunct banks

“Because of the incomplete asset movement schedules, I was not able to verify the movement of assets from UGX.117,697,652,159 at closure to UGX.19,729,181,000 as stated in the Statement of affairs as at 30th June 2015 Documents presented 17th September 1998 financial statement, ”Muwanga noted.

When asked to state whether reports there were any reports on movement of assets, Sekabira, the Director, Financial Markets Development Coordination said there was none made. Since I am on oath I must be careful. They are no reports on ICB,” he said.

When Katuntu asked about the report, Mr. Mutebile said: “Mr. Chairman, I am sorry because I don’t remember receiving and reports in my office.”

Katuntu said the lack of reports indicates that BoU doesn’t have a regular reporting mechanism to ensure that the liquidation processes of banks go on well.

Section 33(5) (a) of Financial Institutions Statute (FIS) 1993 provides that where the Central Bank decides to liquidate a financial institution, it shall realise the assets of the insolvent financial institution. In doing so, the Liquidator is required to keep proper financial ledgers and financial records in which shall be recorded all financial transactions relating to the liquidation.

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