BOU scrutity pushed to next week

By Alice Lubwama

Parliamentary Committee on commission’s  statutory authorities and state   enterprises (COSASE)  starts hearing  into the closure  of some commercial banks with a directive  to the central bank to avail the committee with necessary information concerning  the closure of seven defunct banks.

The banks in question include Teefe Bank in 1993, International Credit Bank Ltd in 1998, Greenland Bank in 1999, The Co-operative Bank in 1999, National Bank of Commerce in 2012, Global Trust Bank in 2014 and the sale of Crane Bank Ltd to DFCU in 2016.

The probe follows a letter by the committee in 2017 requesting the Auditor General to undertake a special audit on the closure of these commercial banks by the Central Bank after the controversial closure of crane bank.

The report from the Auditor General, John Muwanga which was made public in August queries on how the central bank handled the closure of the seven commercial banks and how bank of Uganda spent over 400
billion on the closure of crane bank and half of this money is yet to be recovered.

The chairperson of the committee Abdul Katuntu in his introductory remarks noted that the objective of this process is to see if any Bank could be handled better in accordance with the law.

However,the committee could not go any further with scrutiny as Bank of Uganda led by the governor Emmanuel Mutebile did not have some of the supporting documents that the committee needed . Hon Katuntu  has now pushed the sitting  to next  Friday.

“Colleagues lets give ours selves  up to  Friday as we internalize the documents,this process is good for the country, it is also good for the central bank and the commercial banks too  , its not postmortem
,but its accountability. as we realise from so far  what we have read none of those banks had been finally  resolved.”Katuntu said.