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Cosase probe: Camps created within BoU as new issues emerge

The ground can no longer hold for BoU officials.

The on-going probe of Bank of Uganda by the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises has created camps within the institution as officials accuse each other of not doing their work as well financially gaining from the liquidation and sale of assets of seven defunct banks.

BoU inside sources say the Governor Prof. Emmanuel Tumusiime-Mutebile, Dr. Dr. Tumubweine Twinemanzi, the new Executive Director in charge of Supervision, Milton Opio Orech (Director Security) and a few others are on one side while Benedict Sekabira (Director, Financial Markets Development Coordination), Margaret Kasule (Director Legal Affairs) and Dr. Louis Kasekende (Deputy Governor) and a few others are on the other side.

Meanwhile insiders say that Dr. Kasekende is reportedly praying that former Executive Director Supervision Ms Justine Bagyenda does not fall into trouble. This because Kasekende and Bagyenda used work closely together in the liquidation of some of the banks such as Crane Bank Limited (CBL) and Global Trust Bank Uganda (GTBU).

Bagyenda has been accused of stealing BoU documents and has been given until Thursday this week to produce them. Cosase is not happy with the way BoU keeps its documents to the extent that even the Governor, Tumusiime-Mutebile doesn’t not remember whether he received some documents or not.

Insiders say Kasekende, Sekabira and Ms Kasule who are Baganda are not happy that Dr. Twinemanzi, a Mukiga like Tumusiime-Mutebile availed some of the hidden documents to Cosase. The documents have exposed Sekabira and Kasule as being unserious in their work. Yesterday BoU could not avail documents for GTBU.

Sekabira, Kasule and Kasekende are unhappy that Twinemanzi who only joined BoU in February this year is cooperating with Cosase by bring out some of the documents that the three officials were not willing that they be shared with the MPs. Some appear to be forged and with no signatures. All in all Twinemanzi, insiders at BoU say, he is doing all that to save his boss Tumusiime-Mutebile, a fellow Mukiga.

Insiders say Twinemanzi who was recruited from Uganda Communications Commission (UCC) is doing his best to expose Sekabira, Kasekende and Bagyenda after all he came in when the banks were sold long ago and yet the three banks did not give Tumusiime-Mutebile all the information. That is why the Governor had to sack Bagyenda before her official retirement.

Cosase is not happy that officials who are the best paid in the country cannot coordinate their work and cannot keep public documents. Insiders at BoU says Ms Kasule, the legal counsel is keeping documents to frustrate MPs’ work but also save Sekabira and Kasekende.

Remember that when parliament ordered the Auditor General John Muwanga to audit BoU over the controversial liquidation of the seven banks, Kasekende became restless, trying all means to block Mr. Muwanga from doing his job. Although Kasekende at that time said Muwanga’s probe would infringe on the subjudice rule since related cases were in court, he had hidden motives that he didn’t want Tumusiime-Mutebile to know about and it is the reason why BoU officials did not avail all documents to Mr. Muwanga for examination.

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There are bean weevils in Bank of Uganda-Museveni

President Yoweri Museveni has revealed that there is corruption in well remunerated government institutions of Uganda Revenue Authority and Bank of Uganda.

Speaking during the anti-corruption dialogue held at Imperial Royal Hotel, Museveni said there is still a lot of corruption in spite of all these efforts made to man it down.

“But remuneration can’t replace integrity because some of the areas where there is a problem, people are well remunerated URA, they get very good salaries and so why would you have corrupt people there. Bank of Uganda,there is corruption there and so there is Kawukumi (Bean weevils), Kawukumi, there is muwembe and gradually Kawukumi has come in there now and so remuneration is not a cure but patriotism first ” President Museveni said.

During the State of the Nation Address Museveni instituted a parallel team led by former Secretary General of Uganda National Teachers Union (UNATU) James Tweheyo, former Mbarara Resident District Commissioner Ms. Martha Asiimwe and sister Akiror to manning corruption desk in his office. The team was to directly report cases to him.

Museveni said that during bush war, their effort was that patriotism will be reinforced by the popularly elected leaders, as legislations and the institutions look after them, “The whole population is fed up of corrupt people because they know them, but with patriotism, corruption is defeatable,” he added.
Eagle Online reported that yesterday during cabinet meeting, Mr Museveni is reported to have rejected pleas by Finance Minister Matia Kasaijja to have the ongoing inquiry in parliament halted. Kasajia’s request was supported by government Chief Whip, Ruth Nankabirwa.

However, as the debate was gaining momentum, the president chipped and said “I advised those people (BoU) against closing Crane Bank, I even went on to suggest that we carry out a silent investigation and I went ahead to contact Abdu Katuntu who agreed with my suggestion but they refused and so let parliament do its work and let them face music” the president is quoted to have said.

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BoU security officers remanded to Luzira Prison

Two Bank of Uganda (BoU) security officers have been charged with negligence of duty which caused the disappearance of documents related to the liquidation of some of the seven commercial banks.

Ms. Beatrice Kyambadde and Charles Mollo appeared before City Hall Court in Kampala on Tuesday and charged with negligence of duty before they were remanded to Luzira Prison until December 6, 2018. This was after prosecution told court that police investigations into the matter was not yet complete.

Charles Mollo

Ms Kyambadde and Mr Mollo were keeping the access gates that the former BoU executive director for Supervision, Ms Justine Bagyenda used to take out bags suspected to be carrying bank documents. They were arrested last Thursday on orders of MP Abdu Katuntu, the Chairman of parliamentary committee investigating the closure of commercial banks.

The two security assistants were arrested alongside Bagyenda’s bodyguard Juliet Adikot and her driver Job Turyahabwe on orders of the Abudu Katuntu, the chairman of parliamentary committee probing BoU over the closure of commercial banks.

Beatrice Kyambadde

Ms Adikot and Mr. Turyahabwe last week gave contradicting testimonies to the committee in relation to Ms Bagyenda’s movements on the day three bags were returned. The two were captured by CCTV cameras felling out bags into Bagyenda’s car. Ms Adikot caused drama in parliament when she said police’s standing orders do not permit her to give any information to any authority.

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Parliament to host second Science, Technology and Innovation and exhibition week

Speaker of Parliament Rebecca Kadaga

Parliament will next week host the second Science, Technology, Innovation and exhibition that is intended to identify creative ideas that require government interventions and funding.

Under the theme ‘Transforming the country through Ugandan innovations,’ the exhibition will be held at the Parliament Ground parking from December 10 to 14, 2018.

Over 800 local innovators are expected at the exhibition, which is being organized by the Parliament Committee on Science, Technology and Innovation.

According to Kigulu North MP and Committee Chairperson of Science, Technology, Fred Bwino Kyakulaga said exhibition and entrance are free of charge, government will support innovators so that Uganda can match the pace of developed nations, where innovation, science, and technology are the primary pillars of economic growth.

“The objectives of this exhibition is to empower and support the innovators, enhance social economic transformation of the country through application and use of local materials and finally identify innovations that require government interventions and funding,” he said Parliament.

“We did not get any funding because there was no framework governing the use of the fund. The innovation fund was to be drawn from the Consolidated Fund and since its public resources, the guidelines are necessary,” He said.

He revealed that the Ministry of Science and Technology is currently carrying out countrywide consultations to draft guidelines before the next budget reading.

He implored innovators to come and exhibit new ideas, creative thoughts and imaginations in form of new devices, methods and procedures and value additions, in the various fields.

Mr Bwino said, the institution of the Uganda Registration Services Bureau would attend the exhibition so as to provide important information to innovators on the need to protect their intellectual property rights from what he called ‘intellectual thieves and pirates’.

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Global Trust Bank closure: Cosase gives Bagyenda deadline to present documents

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

Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) has given the former Bank of Uganda (BoU) executive director of supervision, Justine Bagyenda and her former co-workers up to Thursday this week to present negotiation records, inventory reports and minutes of meeting that led to the final decision for closure of Global trust bank Uganda (GTBU).

Appearing before committee chaired by Bugweri county MP, Abdul Katuntu, Bagyenda said she didn’t have a chance to look at the audit report of GTB except that of Crane Bank. “I only had a chance took at the audit report of Crane Bank and then I left Bank of Uganda,” she said.

Bagyenda told the committee members that BoU followed right procedures to the closure of GTB. “We carried out all examinations on the bank, the board of management was weak, financial status was inaccurate therefore we wrote a report and it was presented to the Governor BoU, Prof Tumusiime Mutebile,” she said.

She said that a commercial audit was done and conducted by KPMG before the bank was closed. However, Katuntu asked her to avail inventory reports, negotiation records and minutes of the meetings that approved the closure of the bank.

In her response Bagyenda said: “I can’t remember if we have them, I need to check,” She replied adding that she was not given any chance to talk nor discus them.”

Katuntu responded: “New officers need to know the past activities conducted by BoU. The bank has to have a record. I repeat are records there? ” Asked Mr. Katuntu.

Mrs. Bagyenda, however requested to be given more time to cross check with BoU. Her plea was heard was granted up to Thursday this week when the committee is scheduled to resume its work.

In yesterday’s meeting, it was revealed that GTB was closed on July 25, 2014 and had its assets and liabilities transferred to DFCU Bank on the same day under the purchase of assets and assumption of liabilities agreement.

Cosase is probing current BoU top gurus as well as former employees who participated in the closure of seven banks. The MPs are using Auditor General John Muwanga’s report on seven defunct banks which include Global Trust Bank and others like Crane Bank, Teefe Trust Bank, Greenland Bank, National Bank of Commerce, Cooperative Bank and International Credit Bank.

According to Mr. John Muwanga, who probed BoU after parliament ordered that he does so, GTBU was closed on 25th July 2014 due to undercapitalization and Corporate Governance weaknesses among other reasons. BOU took over the management of GTBU in line with Section 88(1) of the Financial Institutions Act 2004. In line with Section 95(1) (b) of the Financial Institutions Act 2004 BOU and DFCU arranged for the purchase of assets and assumption of all or some of the liabilities of GTBU.

On 25th July 2014, BOU and DFCU signed a Purchase of assets and Assumption of liabilities agreement where certain assets were transferred and liabilities assumed by DFCU as per Article 10.2. The remaining assets were to be retained by BOU.

Referring to the transaction, Mr. Muwanga said: “I observed that there were no guidelines /regulations or policies in place to guide the identification of the purchasers of GTBU. There were also no guidelines to determine the procedures to be adopted by the Central Bank in the sale of assets and transfer of assets or liabilities of the defunct banks to DFCU.”

BoU did not also provided to Mr. Muwanga records of the procurement process to ascertain the bid requirements, offers made, list of bidders, evaluation criteria, evaluation report and negotiation minutes leading to the P&A agreement.

“In the absence of guidelines and procurement records, I could not ascertain whether BOU selected and evaluated the bids in line with the evaluation criteria,” he said.

GTBU Uganda becomes the fifth defunct bank on which BoU officials have failed to present all reports regarding the liquidation and sale. Others where BoU have failed to present all reports on are; Teefe Trust Bank, Greenland Bank, International Credit Bank and Cooperative Bank.

Cosase also plans to summon the buyers to answer certain queries since BoU has failed to satisfy them with their uncoordinated explanations on the sale.

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Over 24,000 electronic passports ready for collection- Jeje Odongo

Foreign Affairs Minister, Gen. Jeje Odongo.

Internal Affairs Minister Gen Jeje Odong has revealed that over 24,000 passports are ready for collection in the first step towards transiting from paper to electronic passports.

Recently Uganda joined the two East African countries of Kenya and Tanzania using electronic passports compelling president Museveni to direct for phasing out of paper passports to electronic come January 2019.

“We are not in line to fulfill that directive, we are due to receive the initial batch from Uganda security Printing Company who are our suppliers, electronic Passport is significantly different from the current passport, it is going to improve the security of the document and delivery of service,” he said at his office in Kampala.

The EAC electronic passport are printed in three coolers, red for diplomats, green for officials and sky blue for ordinary people. The minister said those with old passports have up to 2021 to acquire the current ones.

He said passengers bearing electronic passports will be quickly processed through cross boarder points through self-service point or a counter manned by an individual.

He said a national identity card can be used as a travel document through East African member states of Uganda, Kenya, Tanzania, Rwanda and Burundi.

Uganda is now part of the family of the over 150 countries travelling using electronic passports.

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Vipers face tough test against Al-Merrikh

Vipers team

Vipers SC prepare for the return leg of the CAF Champions League tie against Al Merrikh of Sudan on Wednesday at St Mary`s Stadium ,Kitende.

The venoms lost 2-1 away in Khartoum in the first leg and will be targeting to eliminate their Sudanese opponents to advance to the first round of the champions league group qualifiers.

Striker Dan Muzeeyi Sserunkuma came off the bench and scored the vital goal in the final moments of the game. Madina Bakri and Ibrahim Altag were on target for Merreikh.

The Uganda Premier League champions will need to win by at least 1-0 to qualify on away goals rule while a similar result like the one in Sudan will take the game to shootouts.

Both Davis Kasirye and Steven Mukwala return from injuries but the Burundian goalkeeper Fabien Mutombora is still sidelined. The rest of the squad is available for selection.

Al Merriekh team arrived in Uganda over the weekend and trained on St. Mary’s stadium Monday and will conduct their final training on Tuesday afternoon.

This is Vipers SC first time to participate in the CAF Champions League after taking part in the CAF Confederations Cup in 2016 when they were eliminated by Enyimba of Nigeria and in 2017 eliminated in the second round by Platinum Stars of South Africa 3-2 on aggregate.

The center Referee will be Abdoul Karim Twagiramukiza, his assistants will be Dieudonne Mutuyimana and Honore Simba, all from Rwanda. The Match Commissioner will be Ali Mzee Zam from Zanzibar.

Tickets for the match will be sold at the stadium, where the VIP will pay thirty thousand and ordinary or open stands will go for ten thousand Uganda shillings

The victors of the fixture will face either Algerian side CS Constantine or GAMTEL from Gambia in the next round of the champions league group stage qualifiers.

The winners of the next round of the qualification round will be a total of 15 clubs that will join CAF Champions League Winner (Season 2018) in the group matches of the 2018-2019 season.

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Modric breaks Messi-Ronaldo dominance to win this year’s Ballon D’or

Modric

Real Madrid’s Croatia midfielder Luka Modric was named the winner of the 2018 Ballon d’Or on Monday breaking Cristiano Ronaldo’s and Lionel Messi’s decade-long hold on the prestigious award.

The 33-year-old playmaker helped Real Madrid win a third successive Champions League title in May and also captained Croatia to their first World Cup final, being named the player of the tournament despite his side losing 4-2 to France.

The last player to lift the award apart from Messi and Ronaldo, who have won it a joint-record five times each, was Kaka in 2007 when he played for Italian side AC Milan.

Modric joined Real Madrid from Tottenham Hotspur in 2012 for a reported €40 million was criticised in his debut season at the Bernabeu and named the worst signing of the year in a poll by Spanish newspaper Marca.

Cristiano Ronaldo came second, Antoine Griezmann third and Kylian Mbappé fourth while Messi came fifth.

Harry Kane, the only English player on the 30-man shortlist, ranked 10th in the poll after winning the World Cup Golden Boot in Russia as he captained England to their best finish in 28 years.

Premier League trio Mohamed Salah (6), Eden Hazard (8) and Kevin De Bruyne (9) were also in the top 10.

World Cup winners N’Golo Kante (11) and Paul Pogba (15) finished in the top 20 after being recognised for their performances in Russia.

The Ballon d’or, voted for by journalists and organised by French magazine France Football, has been dominated by Barcelona’s Messi and Ronaldo, first when he was at Manchester United and subsequently with Real Madrid, since 2008.

Along with the Ballon d’Or award, the Kopa trophy for the best young player was also to be handed out, and that honour went rather unsurprisingly to Kylian Mbappe for his heroic contributions for France at the World Cup in Russia.

The Ballon d’Or was first presented in 1956 and partnered with soccer’s world governing body Fifa as ‘The Best’ award from 2010 to 2015, until becoming its own entity again.

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Court adjourns Arua by-election saga case

Gulu Grade One Magistrate Court presided over by Isaac Kintu on Monday adjourned the Arua by-election saga case involving Bobi Wine and others to January 10, 2019.

The adjournment of the hearing follows the prayer by Paul Weponde, the state prosecutor who said the police are yet to complete investigations into the case.

Bobi Wine and several others are alleged to have caused havoc in during the Arua by-election that was won by Wadri Kasiano months ago.

Earlier on, Counsel Tony Kitara, who is one of the lawyers representing the accused persons, said court should proceed with the case.

He urged court to prevail over the prosecutor and police so that the case goes on to avoid what he called persecution of his clients.

He also asked for a longer adjournment of the hearing since majority of the accused are peasants who struggle to raise money to report to court and that some stay in faraway districts like Kampala and Arua.

In his ruling, Isaac Kintu asked the prosecutor to speed up the investigations since most of the accused persons come from outside Gulu district.

“I have heard from both the state and the defense teams. Accordingly, the state is called upon to speed up their investigations because I also note that most of the accused persons come from outside this jurisdiction,” said Kintu before adjourning the case to January 10, 2019 for further mention.

Hon. Robert Kyagulanyi aka Bobi Wine, the MP for Kyadonodo East and one of the accused said despite them full filling their responsibilities, the outcome is not encouraging.

“We came to court today to full fill our side of responsibility although the outcome is not encouraging, for example we have been given a very nearby date to show up to court even though our lawyers tried to bring it up to the judge that we need some time as the state goes on with investigation.” Said Hon. Kyagulanyi

Hon. Kasiano Wadri, the Arua Municipality MP said they will stop reporting to court if the required six months elapsed before investigation is completed.

“The charge against us is of a capital nature and the law is very clear in its provision that when a suspect is brought before court of law for capital offense of that nature, the investigation must be completed within six months so that the evidence is produced before court to be taken to high court.” Said Hon. Kasiano

“This therefore means we are counting the months we’ve reported to court and should we clock and hit six months to report here and police continue dilly darling that they are not through with their investigations, we shall by the law, stop coming to court.” He went on

Hon. Kasiano Wadri, Hon. Robert Kyagulanyi and 33 others are facing charges of treason following the saga of the Arua Municipality by-election on 13th August.

Meanwhile the court has issued criminal summons for Ntungamo municipality MP, Gerald Karuhanga and Jinja east legislator, Paul Mwiru after they failed to appear before court alongside others.

Defence lawyer Henry Kirima informed court that Mwiru was not obliged to appear for mention of the case while MP Karuhanga was in Burundi for inter-parliamentary games that are scheduled to take 10 days.

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Uganda ratifies continental trade agreement

Some of the African leaders at the signing of AfcFTA

Uganda has become the latest on the continent to submit the instruments of ratification of the African Continental Free Trade Area (AfCFTA. The development was confirmed by Moussa Faki Mahamat, the Chairperson of the African Union Commission (AU) who is hopeful that other countries would follow suit.

As of July 2018, six countries had submitted ratification instruments – Ghana, Kenya, Rwanda, Niger, Chad, and Eswatini with the expectation that many more would do so before the end of the year.

In March 2018, 44 African countries out of the 55 AU member states signed the vital continental free trade agreement in Kigali, Rwanda to enable the long-awaited economic integration and movement of goods and persons across member states.

This agreement was first introduced in January 2012 during the 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union, held in Addis Ababa, Ethiopia. The member states adopted the decision to establish the Continental Free Trade Area by 2017.

The agreement is meant to establish a single continental market for goods and services; enhance free movement of business persons and investments; enhance competitiveness at the industry and enterprise level through exploiting opportunities for full-scale production.

It will also bring together the 1.2 billion African population with a combined gross domestic product (GDP) of more than US$2 trillion with the commitments of the countries to remove tariffs on 90 per cent of goods, with 10 per cent of “sensitive items” to be phased in later.

However, 11 countries at the time did not sign the agreement for diverse reasons. The countries are Nigeria, South Africa (which later signed in July), Benin, Botswana, Burundi, Eritrea, Guinea-Bissau, Lesotho, Namibia, Sierra Leone and Zambia.

One of the reasons for these countries not to sign is that they faced pressures from business leaders and labour unions who believe the agreement could affect their economies.

Five more countries signed the AfCFTA at the African Union (AU) summit in Mauritania in June, bringing the total number of countries committing to the agreement to 49 by the end of July.

For the agreement to take effect, at least 22 countries must submit instruments of ratification to commence the process. Depositing the instruments of ratification means the country has undertaken all required internal legislative and legal measures in readiness to implement the agreement.

During the signing of the agreement in March this year, African Union Member countries set a deadline of 180 days to ratify the agreement through their respective legislative bodies.

The UN Economic Commission for Africa’s (ECA) Conference recently urged African countries to speed up the ratification and adoption process of the agreement with reasons that it is a powerful tool for driving industrialisation, economic diversification and development.

The implementation of the agreement could also boost intra-African trade from its current level of 16 per cent to 52 per cent by 2022, according to estimates by the ECA.

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