Government asks Bank of Uganda to explain Cooperative Bank closure

The Ministry of Trade, Industry and Cooperatives has written to the authorities at Bank of Uganda to explain why they closed Cooperative Bank.

Mr Frederick Ngobi Gume, the State Minister for Cooperatives, on Wednesday said his colleague, Ms Amelia Kyambadde, has on three occasions written to BoU, demanding the details of the liquidation report but the bank is yet to comply.

Government wants to know the reasons for the closure of the bank to assist the Trade ministry and the shareholders understand what could have gone wrong. The government is in the process of reviving Cooperative Bank.

“Since last year, we have written three letters to Bank of Uganda requesting for a liquidation report for the defunct Cooperative Bank,” Mr Gume said.

The minister said BoU officials did not respond to the two letters and only replied recently with a promise to avail the report.

He also said President Museveni has given the ministry a go ahead to re-establish Cooperative Bank to provide agriculture and commodity financing to the cooperative movement.

Mr Gume said consultations were on-going and that co-operators have backed a proposal to partner with an investor with “cooperative interests”.

Read More: Daily Monitor 

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