Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) started investigating Bank of Uganda (BoU) after the Auditor General John Muwanga on August 27, 2018, presented to the Speaker of Parliament Rebecca Kadaga a special auditor report on seven defunct banks.
The report had faulted BoU on legal, ethical as well as professional grounds, somehow confirming what the former owners of the closed banks were saying. Those grounds formed the basis for MPs to investigate BoU, the process which is still on going as the committee plans an exit meeting with BoU senior staff on Friday this week.
The MPs also considered the complaints of some of the BoU employees who in March, 2018 petitioned the House, accusing the Central Bank’s senior managers of misconduct, tribalism, favouritism and fraud. This after BoU, Governor Emmanuel Tumusiime-Mutebile, carried major changes in the senior staff whereby he dropped former executive director of bank supervision Justine Bagyenda who later report her boss to IGG, Irene Mulyagonja, whose intervention resulted into a public spat between her and Tumusiime-Mutebile and was only cooled by President Yoweri Museveni.
Also in 2017, businessman Amos Nzeyi, one of the shareholders of the National Bank of Commerce (NBC) dragged BoU to Commercial Court for wrongfully closing his bank (NBC) in 2012. Nzeyi alleged that NBC’s financial health had stabilised by the time BoU closed it and wanted court to hold BoU for alleged failure of supervising the banking sector.
At the same time BoU was involved in a dispute with Sudhir Ruparelia, the majority shareholder of Crane Bank Limited after the central bank closed it on October 20, 2016. Before its closure, for a number of years BoU had lauded CBL as one of the best performing banks in the country. Its closure surprised many including President Museveni who argued against its closure but BoU officials could not listen.
All the above situations presented an opportunity for a probe that would find the dirt in BoU which was claiming independence as well as wanting to take advantage of subjudice rule to avert the probe by the Auditor General. Muwanga’s probe of BoU started mid May 2018, after being given a green light by the Speaker of Parliament, Rebecca Kadaga. Kadaga on May 10 wrote to Muwanga, informing him to proceed with the investigations saying that BoU being a public institution could not dodge an investigation.
In that My 10, 2018 letter to the AG, Ms Kadaga quashed the protests by BOU officials led by deputy governor Dr. Louis Kasekende who had resisted the investigation and was backed by legal opinions from an official of the office of the Solicitor General who had asked BoU officials not to cooperate with Muwanga and his team of auditors.
“Therefore in response to your request for guidance, you should proceed with the audit as directed and submit your report to my office as it is required by the law,” the Speaker wrote.
In a letter dated November 28 2077, COSASE; had requested the Auditor General to undertake a special audit on the closure of commercial banks by Bank of Uganda. The committee specifically requested the Auditor General to provide assurance on; the status of the banks at closure, cost of liquidation, status of assets and liabilities of the aforementioned banks from closure to date, non-performing assets, non-recoverable assets and liquidators.
One of the findings in Mr. Muwanga’s report was the absence of documented guidelines for identification of purchasers of banks. “I observed that there were no documented guidelines/regulation or policies in place for the identification of the purchasers of the 3 defunct banks- Global Trust Bank Uganda (GTBU), National Bank of Commerce (NBC) and Crane Bank Limited (CBL) closed using the purchase and assumption arrangement. There were also no guidelines to determine the procedures to be adopted by the Central Bank in the sale/transfer of assets and liabilities of the defunct banks to the identified purchaser. In the absence of guidelines, I could not establish the basis used to select the purchaser and determining the values of assets and liabilities transferred by BOU to the purchaser,” he said. The Auditor General also accused BoU of failing to provide him with crucial documents related to the sale of banks, including quarterly liquidation reports, inventory reports and minutes of meetings.
The MPs have been pinning BoU senior officials on various as presented findings in the report. However, during the inquiry to much dirt has been unearthed.
Some of the highlights of COSASE probe
Katuntu sends away Tumusiime-Mutebile and Kasekende
On November 1, 2018 COSASE Chairman Abdu Katuntu sent back Tumusiime-Mutebile and Kasekende because they did not carry critical documents about the closure of seven commercial banks under inquiry.
The MPs on the Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) wanted BoU to provide inventory reports, loan schedules, customer deposit schedules, statement of affairs and reports on assets and liabilities. The documents explain why the commercial banks were closed and have other details about the status of the banks before the closure.
Bagyenda flees out of country
On November 23, MPs on COSASE went wild when committee chairman showed them a letter indicating Bagyenda had flown out the country in the middle of the probe where she was a key witness. Katuntu, told members that he received a letter that morning informing him Bagyenda had flown abroad to attend to some engagements, which she confirmed long before the probe started. Bagyenda was supposed to clarify whether or not quarterly progressive reports on the liquidation of assets of closed banks were filed and their whereabouts as raised in the 2017 forensic audit report in which the Auditor General pointed out irregularities in the sale of commercial banks since 1993. Katuntu would warn her on his intentions to issue a warrant of arrest which forced her to return days later.
BoU security officers put on oath
On November 28, 2018 Four BoU security officers were put on oath by Cosase which is probing the central bank’s top officials and others over the irregular closure of seven commercial banks in the country. The four officials including a bodyguard of Ms Justine Bagyenda, the former executive director of supervision at BoU, gave more details of how Bagyenda was able to move documents out of the Bank without being checked as captured by CCTV Cameras. However, Bagyenda’s aide Juliet caused drama in parliament, saying standing orders of the police do not permit her to appear before a committee or any other related organ. She was over ruled by Committee Chairman Abdu Katuntu who said standing orders of the police force are subject to the Constitution of the Republic of Uganda. She would later take the oath.
BoU security officers arrested
COSASE also in November arrested and later in early December remanded BoU security officer-Charles Omoro and Beatrice Kyambadde, who were on duty when Bagyenda moved out documents. The duo were charged with negligence of duty and were said to have lied when taking oath about the movements of the items in question.
Bagyenda sold Global Trust Bank over phone
COSASE probe established that Bagyenda sold National Bank of Commerce (NBC) and Global Trust Bank Uganda (GTB U) on phone. According to Ben Sekabira, the director financial markets development coordination at BoU, NBC was facing a shortage of capital and battling a shareholder dispute which made it a risk. Sekabira, however, added that the potential buyer of the bank was identified via phone calls between the former executive director Justine Bagyenda, legal counsel Margaret Kaggwa, lawyers from Max Advocates and former Crane bank managing director A. R. Kalani. Sekabira said GTBU was also sold in the same way, which surprised Mps.
Shock as banks’ owners fault BoU for fast sales
The former owners of International Credit Bank faulted while appearing before COSASE faulted BoU for selling their bank within six hours after its closure. Former owners of Global Trust Bank Uganda revealed their bank was sold in one day in the process spearheaded by Bagyenda. The same happened with NBC whose buyers said they were forced by Bagyenda to buy it.
Mutebile disowns Bagyenda in sale of GTBU
In December, BoU Governor, Emmanuel Tumusiime-Mutebile denied ever delegating his powers to Bagyenda to enter into an agreement with DFCU Bank for the sale of Global Trust Bank. Asked by COSASE Chairman MP Katuntu if he delegated his constitutional powers to allow Bagyenda to commit the Central Bank into a Non-Disclosure Agreement with Dfcu, the Governor denied doing so. However, Mutebile letter present documents he signed for sale of GTB, something that the MPs castigated, saying he had at first lied to them about the GTBU sale saga.
BoU spends Shs478b on Crane Bank which needed 157b to remain afloat
Bank of Uganda officials surprised when it came to light that it spent sh478 billion for running CBL a couple of months during the takeover before selling it to DFCU whereas Crane bank needed Sh157billion capitalization to remain afloat, as revealed by Ben Sekabira. BoU sold CBL to DFCU Bank at Shs200 billion interest-free but has failed to account for Shs478 billion.
Compensations
Former owners of all the banks that were closed that were closed now want BoU to compensate them for loss of business. For instance Nigerian owners of GTBU want over Shs310 billion, Greenland (Shs295 billion. Former owners of NBC say they are in discussion to establish the amount of money to be compensated by BoU. CBL owners also want an independent audit at the cost of BoU. All these demands mean a Ugandan taxpayer stands to lose hundreds of billions shillings due to bad practices of BoU senior officials implicated in the sale of the banks. This is not withstanding the fact that already the taxpayers have lost about Shs478.8 billion not accounted for by BoU yet it claims it spent it as liquidity support and other costs to CBL takeover. So based on the above, what is the way forward for BoU? What will happen after the probe? will BoU compensate the owners of these banks or it will be another what elephant.
Hi there! I could have sworn I’ve been to your
blog before but after going through many of the articles I realized it’s new to me.
Anyhow, I’m certainly pleased I discovered it and I’ll be bookmarking it and checking back frequently!
Appreciating the time and effort you put into your blog and
in depth information you offer. It’s great to come across a blog
every once in a while that isn’t the same old rehashed information. Great read!
I’ve saved your site and I’m including your RSS feeds to
my Google account.
My spouse and I absolutely love your blog and find many of
your post’s to be exactly I’m looking for. Do you offer guest
writers to write content for you? I wouldn’t mind producing a post or elaborating on many of the subjects you write regarding here.
Again, awesome web log!
Hi there, always i used to check web site posts here
in the early hours in the break of day, as i like to find out more and more.
Pretty! This was an incredibly wonderful post.
Thanks for providing these details.
It’s very easy to find out any matter on web as compared to textbooks, as I
found this post at this site.
Hey! I could have sworn I’ve been to this site before but after reading through some of the post I realized it’s new to me.
Nonetheless, I’m definitely happy I found it and
I’ll be book-marking and checking back frequently!
hey there and thank you for your info – I have definitely
picked up something new from right here. I did however expertise several technical points using
this website, since I experienced to reload the web site lots of times previous to I could get it to load correctly.
I had been wondering if your web hosting is OK? Not that
I’m complaining, but slow loading instances times will often affect your placement in google and could damage your quality score if
advertising and marketing with Adwords. Anyway I’m adding this RSS to my email and could look out
for much more of your respective intriguing content.
Ensure that you update this again very soon.
Good day I am so grateful I found your webpage, I really found
you by accident, while I was browsing on Aol for something else, Anyhow I am here now and would just like to
say kudos for a remarkable post and a all round thrilling blog
(I also love the theme/design), I don’t have time to browse it all at the minute but I have saved it and also added in your
RSS feeds, so when I have time I will be back to read much more, Please do keep up the great
work.
I have learn a few just right stuff here. Definitely worth bookmarking for revisiting.
I surprise how so much effort you set to make this type of
fantastic informative web site.
Thanks for the good writeup. It if truth be told was
a enjoyment account it. Glance advanced to more delivered agreeable from you!
By the way, how can we be in contact?
Incredible! This blog looks just like my old one!
It’s on a totally different subject but it has pretty much the same layout and design. Great choice of colors!
Hi there, i read your blog from time to time and i own a similar one and
i was just curious if you get a lot of spam comments? If so how do you stop it, any plugin or anything you can advise?
I get so much lately it’s driving me crazy so any support is very much appreciated.
I like the valuable information you provide in your articles.
I will bookmark your blog and check again here regularly.
I’m quite sure I will learn lots of new stuff right here!
Good luck for the next!
Excellent blog you’ve got here.. It’s hard to find excellent writing like yours these days.
I really appreciate individuals like you! Take care!!
I pay a quick visit every day a few web sites and information sites to read posts, except this webpage offers quality based posts.
Hey there! Would you mind if I share your blog with my zynga group?
There’s a lot of people that I think would really enjoy your
content. Please let me know. Cheers
Thank you, I have just been looking for info approximately this topic for ages and
yours is the best I’ve found out so far. But, what about
the conclusion? Are you certain concerning the supply?
Link exchange is nothing else except it is simply placing
the other person’s webpage link on your page at proper place and other person will
also do similar for you.
Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that
automatically tweet my newest twitter updates. I’ve been looking for
a plug-in like this for quite some time and was hoping maybe you would have some experience with something
like this. Please let me know if you run into anything.
I truly enjoy reading your blog and I look forward to
your new updates.
Hello! I’ve been reading your website for some time now and finally got the
bravery to go ahead and give you a shout out from Lubbock Texas!
Just wanted to say keep up the great work!
Wow, amazing weblog format! How lengthy have you ever been running a blog
for? you make running a blog look easy. The overall look
of your website is wonderful, let alone the content material!
This is a topic that is close to my heart… Many thanks!
Where are your contact details though?
I simply couldn’t depart your site prior to
suggesting that I really enjoyed the standard information an individual supply for your
guests? Is going to be back incessantly to check up on new posts
Genuinely no matter if someone doesn’t know then its up to
other viewers that they will assist, so here it happens.
Fastidious answers in return of this question with real arguments and telling
all on the topic of that.
I always used to read piece of writing in news papers but now as I am
a user of internet so from now I am using net for articles
or reviews, thanks to web.
I am curious to find out what blog platform you’re working with?
I’m having some minor security issues with my latest website and I’d like to find something more safeguarded.
Do you have any suggestions?
My brother suggested I might like this blog. He was entirely right.
This publish truly made my day. You cann’t consider just how much time I had spent for
this info! Thanks!
bookmarked!!, I really like your website!
I was recommended this web site by my cousin. I’m not sure whether
this post is written by him as no one else know such detailed about my trouble.
You’re amazing! Thanks!
Hello colleagues, its impressive post concerning cultureand entirely defined, keep it
up all the time.
My brother suggested I might like this web site. He was entirely right.
This post actually made my day. You can not imagine simply
how much time I had spent for this info! Thanks!
Very great post. I just stumbled upon your blog and wanted to mention that I’ve really enjoyed browsing your blog posts.
After all I will be subscribing for your rss feed and I
am hoping you write again very soon!
I every time spent my half an hour to read this web site’s content every
day along with a mug of coffee.
Informative article, totally what I wanted to find.
Hi, i think that i noticed you visited my blog so i
got here to return the desire?.I’m trying to to
find issues to improve my site!I guess its ok to make use
of a few of your concepts!!
I am truly grateful to the owner of this web page who has shared this wonderful
article at at this place.
Link exchange is nothing else except it is only placing the other person’s weblog link on your page at appropriate place and other person will also
do same in favor of you.
My brother suggested I might like this web site.
He was entirely right. This post truly made my day.
You can not imagine just how much time I had spent for this info!
Thanks!
Hello there, You have done a fantastic job. I’ll certainly digg it and personally
recommend to my friends. I am sure they will be benefited from this website.
Woah! I’m really digging the template/theme of this site.
It’s simple, yet effective. A lot of times it’s very difficult to get that “perfect balance” between superb usability
and appearance. I must say you’ve done a amazing job with
this. Additionally, the blog loads extremely quick for me
on Firefox. Superb Blog!
Do you have a spam problem on this blog; I also am a blogger, and I was
wondering your situation; many of us have developed some nice practices and
we are looking to exchange methods with other folks, why not
shoot me an email if interested.
I think that is among the most vital information for me.
And i am glad studying your article. However want to observation on few normal things, The site
style is ideal, the articles is actually excellent : D. Good activity, cheers
Hi, I do think this is an excellent blog. I stumbledupon it 😉 I’m
going to return once again since i have book marked it.
Money and freedom is the best way to change, may you be rich and continue
to help other people.
You are so interesting! I do not think I’ve read through
a single thing like this before. So nice to find somebody with unique thoughts on this topic.
Seriously.. thanks for starting this up. This website is something that’s needed on the internet, someone with some originality!
I know this website gives quality dependent content and additional data, is there
any other website which presents such things in quality?
Discovering your website made my day. Brimming with knowledgeable content and thought-provoking commentary, which is a rarity these days.
appreciate the effort you’ve put into your writing.
Your article is captivating. You present a fresh take that has
ignited my interest. Looking forward to seeing what you post next.
I simply couldn’t resist to leave a comment. Your posts shine with me
on a personal level. If you’re considering offering a newsletter, sign me up!
It would be a joy to have your insights delivered right to
my inbox.
Your writing struck a chord with me. Rarely do you stumble upon a website that prompts you to
think deeply. Keen to see more of your ideas and urge you to continue sharing.
Your piece was a refreshing change. With so much noise
online, it’s wonderful to encounter content that’s as meaningful
and articulate as yours. Keep it up
This syntax provides a variety of options for creating a positive and encouraging blog
comment that compliments the author’s work and expresses
a desire to continue engaging with their content.
From time to time, I come across a blog that grabs my interest because of its thought-provoking articles.
Yours is undoubtedly one of those rare gems. The way you interlace your
words is not just enlightening but also incredibly engaging.
I applaud the dedication you show towards your craft and eagerly look
forward to your future posts.
Amidst the vastness of the online space, it feels rewarding to come across
a writer who invests genuine passion into their work.
Your posts don’t just deliver valuable insights but also provoke meaningful dialogue.
Count me in as a regular reader from this point forward.
Your blog has become a go-to resource for me, and I can’t help but peruse it frequently for new
content. Each post is like a lesson in your niche,
delivered with eloquence and charm. Would you consider creating a subscription service or a monthly newsletter?
I am keen to get more of your knowledge directly to my inbox
The unique angle you bring to topics is truly refreshing,
it’s highly sought after in our current digital landscape.
Your ability to break down complex concepts and share
them in a user-friendly way is an ability that should not go unnoticed.
I am excited for your future publications and the discussions they’ll inspire.
It’s rare to find a blog that acts as both a cognitive challenge
and a soulful dialogue. Your posts accomplish that,
providing a harmonious blend of knowledge and personal connection. The audience you’re cultivating here is testament to your influence and authority.
I’m anxious to see where you’ll take us next and I’ll be
following along closely.
Having dedicated several hours diving into
the myriad corridors of the internet today, I feel compelled to express that your blog is like an oasis
of insight. Not once have I come across such an amalgamation of
compelling content that resonate on a substantial level.
Your ability for shedding light on complex subjects with grace
and keen insight is admirable. I’m eagerly waiting for your upcoming article,
knowing it will enrich my understanding even further.
In today’s digital era, where content is plentiful, your blog emerges as a cornerstone of
genuine content creation. It’s a joy to behold a corner of
the web that adheres to fostering knowledge expansion. Your eloquently written posts stimulate an appetite for knowledge that many of us seek.
Kindly inform me if there’s an option to sign up for direct notifications,
as I do not wish to miss any thought-provoking entry.
Your online presence is a true reflection of what engaged storytelling is all about.
Every post you craft is laden with actionable takeaways and deep insights that leave me pondering long after I’ve left the
page. Your perspective is a much-needed addition to the sometimes chaotic digital landscape.
In the event you create an exclusive membership, count me among the first to join. Your work is
meriting sustaining.
I find myself returning to your blog repeatedly, drawn by the standard of
conversation you provoke. It’s evident that your blog is more than a place for sharing concepts; it’s a gathering for curious minds who are in search of substantive
engagement. Your investment inOf course!
From the moment I commenced perusing your blog, I could tell it was something special.
Your ability to plunge into intricate topics and demystify them
for your readership is truly noteworthy.
Each post you publish is a repository of knowledge, and I always find myself anxious to see what you’ll delve into next.
Your dedication to quality is evident, and I hope that you’ll
keep on providing such valuable perspectives.
Your writing serves as a beacon in the sometimes turbulent
waters of online content. Your comprehensive explorations into a multitude of subjects are not only educational but also incredibly captivating.
I respect the way you balance meticulous investigation with narrative storytelling, producing posts that are both informative and entertaining.
If there’s an opportunity to follow your blog or enter a newsletter subscription,
I would be thrilled to be notified of your latest musings.
As a content creator, I’m motivated by the zeal you put into each post.
You have a knack for making even the most obscure topics comprehensible and intriguing.
The way you break down concepts and connect them to broader
themes is incredibly masterful. Please tell me if you have any workshops or e-books in the
works, as I would love to gain further insight from your expertise.
It’s uncommon to encounter a blog that hits the mark with both intellect and emotion. Your articles are written with
a level of insight that speaks to the core of the
human condition. Whenever I check your blog, I leave
more informed and stimulated. I’m curious to know whether you
intend to
From the moment I started reading your blog,
I realized it was something special. Your talent to plunge into challenging topics and demystify them for your
readership is truly noteworthy. Each post you share is
a wealth of knowledge, and I constantly find myself anxious to see what you’ll uncover next.
Your dedication to excellence is evident, and I hope that you’ll continue
offering such invaluable insights.
At this moment I am going to do my breakfast, later than having my breakfast coming over again to read more news.
Hi there to every one, it’s genuinely a pleasant for me to pay a quick visit this web site,
it consists of helpful Information.
This is a topic that is near to my heart…
Best wishes! Where are your contact details though?
My brother recommended I might like this web site. He was totally right.
This post actually made my day. You cann’t imagine just how much time I had spent for this information! Thanks!
I have been browsing online more than three hours
today, yet I never found any interesting article like yours.
It is pretty worth enough for me. In my view, if all website owners and bloggers made
good content as you did, the net will be a lot more useful than ever
before.
Hi there just wanted to give you a quick heads up and let
you know a few of the images aren’t loading properly. I’m
not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same outcome.
We stumbled over here by a different website and thought
I might as well check things out. I like what I see so now
i am following you. Look forward to finding out about your web
page again.
Yes! Finally someone writes about joker123 pulsa.
Very energetic article, I liked that bit. Will
there be a part 2?
I get pleasure from, result in I discovered exactly what I was having a look for.
You have ended my four day lengthy hunt! God Bless you man.
Have a great day. Bye
Hello there, just became alert to your blog through Google,
and found that it’s really informative. I’m going
to watch out for brussels. I will be grateful if you continue this
in future. Lots of people will be benefited from your writing.
Cheers!
It’s an remarkable post for all the internet users; they will take benefit from it I am
sure.
Hi there, all is going fine here and ofcourse every one
is sharing information, that’s genuinely fine, keep up writing.
naturally like your web site but you need to test the spelling on several of your posts.
A number of them are rife with spelling issues and I to find it very troublesome to inform the
truth on the other hand I will surely come back again.
Pretty element of content. I simply stumbled upon your website and in accession capital to assert that I acquire actually
loved account your blog posts. Any way I’ll be
subscribing to your feeds or even I fulfillment you access
consistently rapidly.
Hey there! I just want to give you a huge thumbs up for
your excellent info you’ve got here on this
post. I’ll be returning to your website for more soon.
Hi there, i read your blog occasionally and i own a similar one and i was just curious if you get a lot
of spam comments? If so how do you prevent it, any plugin or anything you can recommend?
I get so much lately it’s driving me crazy so any help
is very much appreciated.
Greetings I am so excited I found your blog, I really found you by mistake, while I was looking on Askjeeve for something
else, Anyhow I am here now and would just like to say thanks for a marvelous post and a all round interesting blog (I also love the theme/design), I don’t have time to
read it all at the minute but I have saved it and also included
your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the superb job.
Hmm is anyone else encountering problems with the images on this blog loading?
I’m trying to find out if its a problem on my end or if it’s the blog.
Any feed-back would be greatly appreciated.