Former COSASE chairman, Abdu Katuntu.

Former Chairman of Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) Abdu Katuntu has backed tycoon Sudhir Ruparelia to defeat Bank of Uganda (BoU) in the Supreme Court.

BoU was last week humiliated after the Court of Appeal dismissed a multi-billion case in which the central bank had sued Sudhir Ruparelia and his Meera investments accusing them of siphoning over Shs397 billion from the defunct Crane Bank Limited.

Following the humiliation, BoU said it will appeal to the Supreme Court.
However, MP Katuntu, who led a broad parliamentary inquiry into irregularities and dubious dealings at the central bank, has warned that the central bank should own up to its mess and avoid exposing tax payers to further financial hemorrhage.

“BoU Supervision Department was watching as banks were making mistakes. Therefore BoU must own mistakes and do better in the future,” Mr Katuntu said, adding that the two parties should not involve President Museveni in their wars.

MP Katuntu explained that the law bars CBL in receivership to sue as it has no address and that BoU has failed to account for about Shs466 billion of the taxpayers’ money allegedly paid to the depositors of CBL as it was closed and later sold to Dfcu bank in 2017 at only Shs200 billion, paid in installments.
MP Katuntu added that BoU closed CBL and other six banks with carelessness and impunity even though the lending institutions had weaknesses in running their businesses.

Commenting on the same, Mr Moses Byaruhanga, the Senior Presidential Advisor on Political Affairs, said the current media wars between BoU and defendants in the affected banks are because of BoU’s weaknesses in the supervision of the industry.
“BoU’s supervision department was watching as banks were making mistakes. Therefore BoU must own mistakes and do better in the future,” Mr Byaruhanga said.