Embattled former Executive Director in charge of Supervision at Bank of Uganda Justine Bagyenda.

The former Bank of Uganda Executive Director in charge of Supervision, Ms Justine Bagyenda left office with documents of some of defunct banks after being sacked by her boss Emmanuel Tumusiime-Mutebile, a senior bank officer has said.

Ms Bagyenda was controversially sacked by Tumusiime- Mutebile in February 2018, six months before her official retirement. As executive director of supervision, her role was to ensure the stability of the banking industry but her boss sacked her after the Crane Bank scandal emerged.

Ms Bagyenda was heavily involved in the controversial closure and sale of Crane Bank Limited (CBL) to its rival Dfcu Bank in January 2017 at Shs200 billion paid in installments, the central bank, having spent Shs478 billions of taxpayers’ on CBL before it sold it to Dfcu Bank.

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Sources say Ms Bagyenda went home with most of the defunct banks’ documents after her unceremonious dismissal from BoU. Her intention, inside sources say, is to teach those who were behind her exit a lesson. It is the reason why BoU officials appearing before the on-going probe by Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase), don’t have all the required documents of defunct banks.

Monday and Tuesday have been the toughest days for BoU officials as they were unable to have certain documents required by Cosase. The Governor Tumusiime-Mutebile also has said he doesn’t have all the information on defunct banks in his office, for example the 23 land titles of clients of Teefe Trust Bank. Sources say Director, Financial Markets Development Coordination Benedict Ssekabira informed a section of Cosase MPs that it is Bagyenda to blame. It is alleged that Bagyenda picked the documents at BoU on the weekend and that is why it is hard for the central bank team to present them before the committee.

It has become a habit for the BoU officials to ask for time to check their archives for documents but in reality, sources say, some of the documents are being held Ms Bagyenda. BoU’s legal department which should be in position of any document to do with BoU business is confused. But MPs on Cosase have insisted they want the documents that include minutes of meetings and others.

Sources within BoU say Ms Bagyenda worked closely with BoU’s deputy governor Dr. Louis Kasekende in the closure and liquidation of some of the banks for instance CBL whose closure caused the on-going Cosase probe that so far has not gotten satisfactory answers from the BoU. The problem has been the official’s failure to avail them with all the documents related to defunct banks.

Ms Bagyenda is expected to appear before Cosase on Thursday to explain her role in the dissolution of some of the banks that were said to be insolvent or undercapitalised. Like Dr. Kasekende Ms Bagyenda is under investigation by the Inspector General of Government (IGG) for the alleged illegal accumulation of wealth, which some analysts believe could be result of her ill-dealings while performing her duties then at BoU.

Recent leaked bank documents showed Ms Bagyenda and Dr. Kasekende as stashing billions of shillings on their accounts. The two individuals also own properties in Kampala and Wakiso districts worth billions of shillings to the extent that some were not declared to the office of the IGG as required the Leadership Code Act2002.

Both officials say they got their properties through hard work and right channels and deny they used their positions at BoU to amass wealth illegally. The public is waiting for what the on-going investigation will come out with as regards their wealth.

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