The ground can no longer hold for BoU officials.

The Bank of Uganda has failed to account for Shs478.8 billion, the officials say they sank in Crane Bank Limited as liquidity support among other costs before finally transferring it to Dfcu Bank at Shs200 billion, Anita Among, the Vice Chairperson of parliament’s committee on Commission Statutory Authorities and State Enterprises (Cosase), said on Monday.

MP Among while speaking to the press said BoU officials were sent back to bring valid documents related to the closure and sale of Crane Bank Limited to Dfcu Bank which also ironically bought off assets of Global Trust Bank.

She said BoU officials on Monday tendered in documents that could not convince the committee members on how Shs478.8 billion was spent. She said some of the documented were duplicated by BoU officials.

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She said the loan book of Crane Bank was an irony as there are instances where two clients are attached to the same loans. At the time of takeover by BoU, CBL loans amounting to Shs768 billion constituted 65 percent of the total assets. Shs529 billion worth of net loans were transferred to Dfcu Bank except the insider loans.

She said what BoU officials presented on Monday as documents ‘were mere stationery’ which is not helpful to the committee, the reason she said the committee had to send officials back to bring proper documents on Crane Bank sale.

BoU took over management of Crane Bank Limited (CBL) in October 2016 and sold it off to Dfcu Bank in January 2017 even as owners wanted the transaction dropped. The bank at the time needed Shs157 billion to stay afloat but instead BoU closed it on account of being grossly insolvent. BoU officials would later sink in the bank Shs478.8 billion as they managed it before selling it to Dfcu Bank at Shs200 billion.

According to the Auditor John Muwanga’s special report of BoU on seven defunct banks, BoU did not show accountability of the Shs478.8 billion. “I observed that BoU did not have a documented process of injection of funds to support CBL operations during the statutory management,” he said in August this year while releasing the report.

Cosase has been probing BoU top officials over irregular closure of seven commercial banks including Teefe Trust Bank, Crane Bank Limited, Global Trust Bank, International Credit Bank, Cooperative Bank, Greenland Bank and National Bank of Commerce.

Tomorrow the committee resumes in a closed session where BoU Governor Prof. Emmanuel Tumusiime-Mutebile are expected to bring valid documents if any.

Meanwhile the deputy governor Bank of Uganda, Louis Kasekende has written to the chairperson of the parliamentary committee on Commission of Statutory Authorities and State Enterprises (Cosase) Abdu Katuntu to provide with documents relating to his wealth.

Katuntu said on Friday he had received a letter from Kasekende dated December 14 requesting for information allegedly related to his wealth presented to the committee Aruu South MP Odonga Otto.

Katuntu said he directed the clerk attached to Cosase to avail the information to Kasekende by Monday this week. Katuntu did not say out the reasons given by Kasekende in his letter as to why he requires the documents.

Thursday last week, a sub-committee of Cosase MPs was set up to look into documents of assets allegedly owned by Kasekende and report back to the entire committee tomorrow Tuesday.

The committee comprise Bukedea Woman MPs Among, Uganda People’s Defence Forces (UPDF) representative Brig. Francis Takirwa and Kiruhura Woman MP Sheila Mwine.

The copies of 70 pieces of land and property allegedly owned by Kasekende and his proxies including driver and wife were tabled by Otto as the committee proceeded with investigations into the closure of seven commercial banks between 1993 and 2016 as highlighted in the 2017 forensic audit report by the auditor general.

MP Otto accused Kasekende of engaging in profiteering, presented a list of 17 properties and land linked to Kasekende. He also accused the deputy governor of transferring 18 properties into the control of his driver Moses Musitwa and 35 others into the names of his wife Edith Kasekende.

Otto also laid before the committee, bank statements of Edith, showing transfer of US$1.6 million (about Shs6 billion) from China Railway Corporation and another transfer into her account of Shs1.9 billion from MMAKS advocates. MMAKS advocates were the lawyers retained by BoU to provide transactional advice on the resolutions of Crane bank.