Former BoU chief Bagyenda given 24 hours to explain Coop Bank closure

The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), chaired by Bugweri County Member of Parliament, Hon. Abdu Katuntu has given Bank of Uganda (BoU) officials until 22 November 2018, to submit comprehensive documentation pertaining to the closure of Uganda Cooperative Bank UCB), Greenland Bank, International Credit Bank (ICB), Crane Bank, Gold Trust Bank, National Bank of Commerce and Teffe Bank.

“Mrs. Bagyenda, Mrs. Matovu and Mr. Obbo, you were in these offices. You took these decisions. Work as a team, talk to your colleagues and task them to look for the files, so that tomorrow, you come with the documents and responses. Because while we are not going to ambush you, we don’t people to come here and be evasive,” said Hon. Katuntu.

This was after Mr. Ben Ssekabira, the Financial Markets and Development Coordinator at BoU failed to submit his appointment letter along with other relevant documents, to COSASE on 21 November 2018.

Mr. Ssekabira said he did not know the whereabouts of his appointment letter.

“I don’t know where my appointment letter is, however, I have a personal file with Bank of Uganda where the appointment letter can be found,” Mr. Ssekabira said.

On 20 November 2018, Hon. Katuntu summoned Ms. Justine Bagyenda, the former Director for Supervision in the Central Bank to explain the whereabouts of the liquidation documents of the defunct banks. These include; documents bearing sale agreements, terms of payment and clearance of liabilities (inventory), among others.

This was after Prof. Emmanuel Mutebile, the Governor of the Central Bank said his staff did not furnish him with the liquidation documents. Mr. Ssekabira, who at the time was appointed as a liquidator, alongside the audit firm admitted that he indeed did not give the documents to the Governor, but rather to Former Director, Supervision, Ms. Justine Bagyenda, Mr. Apollo Obbo and Ms. Margaret Matovu, whom he then reported to.

Ms. Bagyenda had it rough as she faced the Committee.

Before she would give her defense, Aruu County MP. Hon Odonga Otto shot up; “Can we get clarity on this? In which capacity is Ms. Justine Bagyenda appearing before the Committee?” Is it in order for her to refrain from appearing before certain Committees deliberately and she appears before others?”

Hon. Katuntu said Mr. Ssekabira’s appointment letter was a crucial document in the probe.

“We want to know what authority Mr. Ssekabira had in the liquidation process, and how he used this authority,” Hon. Katuntu said.

COSASE is probing the irregular closure of; Greenland Bank, Uganda Cooperative Bank, International Credit Bank (ICB), Crane Bank, Gold Trust Bank, National Bank of Commerce and Teffe Bank.


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