BoU bosses thrown out of Parliamentary for lack of documents on 7 defunct banks

By :
AT Team

KAMPALA – The Parliamentary Committee investigating Bank of Uganda (BoU) yesterday sent back the central bank’s Governor Emmanuel Tumusiime-Mutebile and his Deputy Governor Louis Kasekende because they failed to avail documents required in regard to the closure of seven commercial banks.

The MPs on the Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) wanted BoU to provide statement of affairs and reports on assets and liabilities, customer deposit and loan schedules as well as inventory reports.

The required documents would help give an insight into why the defunct commercial banks were closed.

However, Mr Mutebile in a written statement to the committee said that BoU technocrats would present a matrix on the issues raised by the Auditor General in the forensic report.

“The inventory of assets and liabilities was done by M/s PwC, which together with Forensic Audit report informed the valuation of the assets and liabilities at the time of the P&A,” reads BoU’s response to the committee regarding queries raised by the Auditor General.

In response, the Committee chairman, Mr Abdu Katuntu, said the committee would not receive the matrix unless all required supporting documents are availed.

The closed banks are: Teefe Bank (1993), International Credit Bank Ltd (1998), Co-operative Bank (1999), Greenland Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and Crane Bank (2016).

Just like was demanded by the Auditor General John Muwanga, during the forensic audit of BoU, cosase committee also requested the central bank officials to submit minutes of board meetings that show how the decision to close the banks was reached inclusive reports from BoU’s Directorate of Commercial Banks Supervision showing the performance of the closed banks in the two years preceding their closure.

When BoU officials appeared before the Committee yesterday, Deputy Governor Louis Kasekende told the MPs that some of the documentary evidence they had requested for would not be availed due to legal requirements by BoU to protect customer confidentiality.

“On the issue [regarding] loan schedules and customer deposit schedules, we need to be guided because there is a level of confidentiality on customer information. You have requested for this information but there is a limit on which information we can provide on customer deposits,” Mr Kasekende said.

However, the committee chairperson Mr Katuntu ruled that responses to audit queries as highlighted in the forensic audit needed to be handled with detailed evidence.

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