BoU Bosses Quizzed Over Closure Of Crane Bank, Six Others

Bank of Uganda (BoU) top officials yesterday asked for more time to present documentary evidence regarding the closure of 7 banks under probe.

Led by Governor Emmanuel Mutebile and Deputy Louis Kasekende, the BoU officials appeared before the parliamentary committee on Commissions, Statutory Authorities and State Enterprises (COSASE).

They were responding to queries raised in the Auditor General’s report on the closure of 7 Banks including Teefe Bank (closed 1993), International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and the sale of Crane Bank Ltd (CBL) to dfcu two years ago.

COSASE Chairperson, Abdu Katuntu (Bugweri County) started by assuring the BOU officials the probe would be handled professionally adding that the committee would discuss the closure of banks in a sequence following the year of closure.

“This process is going to be handled in the most professional manner. It is going to be handled in accordance with the Constitution,” Katuntu in his opening remarks adding that: “I know there is a lot that has been happening in the media but that will not distract us and it will not unduly influence this process.”

But it was not long, before the committee members sent back the central bank’s bosses for lack of critical documents about the closure of the seven commercial banks under inquiry.

This was after Rubaga North MP Moses Kasibante said that the BoU responses to the AG report needed documentary attachments which would make it difficult to hold the officials accountable.

Katikamu North MP Abraham Byandala also noted that the documents provided by BoU had provided did not contain what they wanted.

In particular, the MPs on the Committee demanded BoU to provide inventory reports, loan schedules, customer deposit schedules, statement of affairs and reports on assets and liabilities before the closure of the banks in question.

However, Dr Kasekende told the MPs that some of the documentary evidence they wanted would not be provided because of legal requirements for the central bank to protect customer confidentiality.

“You have requested for this information but there is a limit on which information we can provide on customer deposits,” Dr Kasekende said.

However, the MPs insisted that the BoU officials provide the documents, prompting Governor Mutebile to ask for two working days to prepare for the next interface.

“I would say that you give us two working days-Friday and Monday,” said Mutebule.
The chairman of the committee granted the two days.