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Kadaga explains fresh probe into BoU over closure of Cooperative Bank

Speaker Rebecca Kadaga during a plenary sitting recently. She said that COSASE will conduct a special investigation into BoU’s alleged mismanagement of the liquidation of Cooperative Bank. (PHOTO/File)

KAMPALA – Speaker of Parliament Rebecca Kadaga has explained that the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) will conduct a separate special investigation into BoU’s alleged mismanagement of the liquidation of Cooperative Bank.

Sections of the probe and the media have interpreted Ms Kadaga’s July 26 letter to Cosase chairman Mubarak Munyagwa to mean that the investigation into BoU, which was conducted by former Cosase chairman Abdu Katuntu, will be restarted.

But the Speaker explained that the letter to Mr Munyagwa is specifically about investigating BoU’s alleged mismanagement of the liquidation of Co-operative Bank that led to loss of money and property of some account holders.

She explained that the investigation will specifically address concerns raised by businessman Chris Tushabe Karobwa, who petitioned her office, alleging that BoU mismanaged liquidation of Co-operative Bank.

“Please receive an appeal letter of Mr Karobwa who alleges that BoU mismanaged the issues of Cooperative Bank in receivership.  This is to instruct the Committee to consider this appeal and report to Parliament,” Ms Kadaga’s letter to Mr Munyagwa reads in part.

The Cosase vice-chairman, Mr Ibrahim Kasozi (Makindye East), has confirmed receipt of the Speaker’s instructions.

“It is true we have instructions to investigate Bank of Uganda. It is a matter about Cooperative Bank that our team is still studying before scheduling hearings.”

Mr Karobwa wrote to Ms Kadaga on June 15th, claiming that he has been a victim of BOU fraud and that his “risky contribution in fighting and exposing corruption in  BOU should not simply be washed away to benefit wrongdoers.

He urged Ms Kadaga to reverse her decision against investigations into BOU because  ‘thieves’ must be punished. The President’s wish to help me has been frustrated by manipulation of questionable legal technicalities by BOU management.

Mr Karobwa claims that when Cooperative Bank was closed in 1997,  he lost over shillings 3 billion in cash and property worth shillings 1.42 billion and an overdraft of shillings 600 million which he never used but BOU officials forced him to pay under duress.  He adds that he made the payments with the hope of getting his properties released, but all that was in vain.

“My properties were not released because the BOU officials involved in this exercise were virtuous beneficiaries in the illegal sale of my properties,” he says.

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