Uganda’s Parliamentary committee scrutiny for the defunct banks kick starts

The parliamentary committee on commissions, statutory authorities and state enterprises has today started scrutinizing  the closure of the  defunct banks by questioning the criteria which was used to close Teefe bank.

The committee chaired by bugweri county mp Abdul katuntu quizzed the officials of the central bank headed by the governor Tumusime Mutebile on how they could close this bank without knowing its liability and assets.

The auditor general in his report noted that some of the documentation of Teefe trust bank where denied to his office. The committee now discovers that this bank was closed without an inventory report, However bank of Uganda’s  deputy governor Louis Kasekende in response said that the law by then did not require them to fill an inventory
report.

“ The nature of documents required at that time did not include the inventory so we don’t have that inventory as of now.’’ `It is true that the Financial Institution statute specifically provides for it, but any institution that is acting prudently if you’re taking over a bank, you can’t move in an institution take it over without documenting what you’re taking over, Katuntu replied

The meeting has now been adjourned to Thursday this week to allow BOU reorganize itself and Provide to the committee the list of assets and liabilities that were taken over by the central bank at the time of dissolving the bank.

A special audit on the closure of Teefe Trust Bank and six others commercial banks by the central bank  was ordered  by the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) in November 2017.

The  committee ordered for  the  auditor after  discovering  that Bank of Uganda  had not  provided the liquidation agent and period for Teefe Trust Bank since it was closed 25 years ago, despite the BOU liquidating  the assets of the bank.

Teefe trust bank was closed in 1993, by the central bank as it was deemed bankrupt. The  special audit report of the Auditor General queried the mistakes  in the closure of Teefe Bank , International Credit Bank Ltd Greenland Bank ,  Co-operative Bank , National Bank of Commerce ), Global Trust Bank (2014) and recently Crane Bank Ltd.

The auditor also observed that there were no guidelines in place to guide the identification of the purchases of the defunct banks.

PARLIAMENTARY COMMITTEE DIVIDED ON DISCIPLINARY PROCEDURE

By Edwin Muhumuza

Former Leader of opposition in Parliament and MP Agago North Ogenga Latigo says the committee on rules, privileges and discipline cannot investigate the actions of legislators because it illegal.

The move by the speaker to direct the committee to investigate the conduct of legislators opposed to lifting the presidential age limit from the constitution has been faulted by former leader of opposition Ogenga Latigo. He says conditions under which it was instituted are wrong since the speaker abandoned the house.

This following the nasty scenes that rocked the house last week in which Special Forces raided parliament to evict members of parliament on the directive of the speaker who had instructed the Sergeant At Arms to take action.

However in their first sitting,the parliamentary committee on rules, privileges and discipline is divided on how to investigate the conduct of legislators who sang the national anthem in protest of plans to lift the presidential age limit from the constitution after the speaker had suspended 25 of them.

Members submissions were laced with  political undertones of witch hunt based on party lines. The chairman, Hon Kenneth Obote Oboth cationed members to put political differences aside to investigate an incident that has cast the speaker Rt.Hon.Rebecca Kadaga in wrong light and even parliament.

He reiterated that it was not time to go deep into the technicalities of the matter at this stage noting that they would go ahead to come up with a list of legislators to face disciplinary action based on CCTV footage of that day with focus on how members behaved .