BoU probe set to resume as Mutebile submits documents on closure of Crane Bank, six others

Bank of Uganda Governor Emmanuel Tumusiime- Mutebile (2nd right) appears before Parliament. (FILE PHOTO)

KAMPALA – Bank of Uganda officials have delivered documents regarding the controversial sale of seven commercial banks to Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), paving way for the start of an investigation into the matter on Friday.

The inquiry, which was planned to start last week, failed to take off after BoU officials, who included Governor Tumusiime Mutebile and Deputy Governor Louis Kasekende, were kicked out of the COSASE session for failing to present some documents MPs said were critical to the sale of the banks.

But on Wednesday, this website was granted access to some of the documents the Central Bank submitted to the MPs regarding the sale of Teefe Bank, International Credit Bank Ltd, Greenland Bank, The Co-operative Bank, National Bank of Commerce, Global Trust Bank and Crane Bank Ltd.

On the sale of Crane Bank, BoU saw a report of assets and liabilities for 2016, a detailed report on the audit of the bank by KPMG in 2015 and BoU reports of examination for 2015 and 2016.

BoU also submitted a Memorandum of Understanding (MoU) between Crane Bank and DFCU Bank and the minutes of a meeting between the BoU and Mr Sudhir Ruparelia, the owner of Crane Bank, which took in August 2016, before the bank was taken over.

COSASE chairman Abdu Katuntu was not immediately available to acknowledge whether all the needed documents were submitted.

The MP’s inquiry is also focusing on the mismanagement of closed banks and dealings with external lawyers as unearthed by the Auditor General in his special audit report to Parliament. Pressure was further piled on BoU and dfcu Bank by 400 ex-employees of Crane Bank who have since sought the audience with Speaker Rebecca Kadaga to present a petition demanding an investigation into a Purchase of Assets and Assumption of Liabilities (P&A) agreement that was signed between BoU and dfcu Bank without the knowledge of ex-Crane bank staff. The AG also queried this agreement. They are demanding Shs48b in terminal benefits.



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