BoU officials implicated in the report on closure of commercial banks.

The former Bank of Uganda Executive Director for Bank Supervision Justine Bagyenda and Director Financial Markets Development Coordination, Ben Sekabira are involved in a bitter row with Deputy Governor Dr Louise Kasekende, with the former two accusing the latter of hatching plans for Auditor General audit Shs478 billion that was meant to support Crane Bank Limited (CBL) while under statutory management between October 20, 2016 and January 25, 2017.

Days ago, Kasekende in a letter requested the Auditor General John Muwanga to carry out a fresh audit of Shs478 billion, after the first audit early this year showed that about Shs320 billion of that money could not be accounted for by BoU officials. Unfortunately Muwanga declined to help Kasekende, saying only parliament can order him to a second audit, BoU having refused to give him all documents related to the money in the first audit.

Sources say the missing money can only be accounted by Bagyenda, Sekabira and some officials from Dfcu bank and some lawyers and as such, it could not reflect on CBL accounts during the statutory management period. However,sources close to the two say the request by Dr. Kasekende to have another audit of documents that weren’t part of the COSASE probe has robbed the two in the wrong way.

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Dfcu bank accessed CBL assets on January 25, 2017 at a surprising Shs200 billion which was to be paid from CBL’s loan book of Shs570 billion, meaning the former got assets at zero price, according to parliament’s Committee on Commissions, State Authorities and State Enterprises (COSASE) which made a report on the closure of seven commercial banks.

During the COSASE probe under then Chairperson Abdu Katuntu, the names of Bagyenda and Sekabira and Edward Mugwanya appeared several times in the illegal closure of banks as well as disappearance of critical documents related to the accountability of the money especially the Shs478 billion claimed to have been sunk in CBL as liquidity support and other intervention costs.

Parliament debated the COSASE report on the seven closed banks and is yet to release final recommendations on those who mismanaged the closure and liquidation of banks whose owners are demanding compensation that could make taxpayers lose trillions of shillings.