Home Business Crane Bank Giveaway: Mutebile, Kasekende ordained to appear before Parliament

Crane Bank Giveaway: Mutebile, Kasekende ordained to appear before Parliament

by James Ateenyi

Parliament through its Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has called on the embattled Governor of Bank of Uganda, Emmanuel Mutebile and his deputy, Louis Kasekende to explain the alleged anomalies in the sale and closure of Crane Bank and six other commercial banks.

This came into effect after the public has lost faith in the BoU board and their entire administration. The administration is branded with bad image due to the leaked images of bank statements allegedly having fat bank balances attributed to the BoU officials.

The duo are expected to appear before the MPs exactly on next Wednesday without failure or excuses to answer queries raised in the Auditor General’s forensic report submitted to Parliament recently.

The summons were issued by Mr Abdu Katuntu, the chairman.

“We shall be able to interact with officers and the board of BoU to explain to us the issues that were raised by the Auditor General in his report. We are inviting the board- that means the Governor and Deputy Governor. Both board and management are headed by the Governor and Deputy Governor,” Mr Katuntu said on Wednesday.

According to sources coming in, the Committe has 94 document to be as used as evidence. The committee is expected to question them to account basing on a special Auditor General’s report, which was compiled on the orders of the Speaker, Ms Rebecca Kadaga following outcry that the Bank of Uganda (BoU) is dealing in shoddy work and that it could have irregularly sold off six banks including Uganda’s promising bank Crane Bank and others being Teefe Bank, International Credit Bank Ltd, Greenland Bank, The Co-operative Bank, National Bank of Commerce and Global Trust Bank.

The special eport indicates that BoU failed to follow any of the stipulated guidelines/regulations or policies in the sale of Crane Bank to dfcu Bank last year and in the closure of the other banks. The AG, Mr John Muwanga, also said the Central Bank did not carry out an evaluation of the assets and liabilities of Crane Bank before they were transferred to dfcu Bank.

The AG’s report has also raised questions on how BoU signed a Purchase of Assets and Assumption of Liabilities agreement with Dfcu on January 25, 2017, for the purchase of Crane Bank.

“I was not provided with the negotiation minutes leading to the P&A agreement. In the absence of the minutes, I could not determine how BoU selected the best-evaluated bidder and how the orden P& A were determined. I also noted that the P&A did not have complete details of assets and liabilities transferred to dfcu with their corresponding values; I was, therefore, unable to establish the status of assets and liabilities transferred to dfcu,” the report adds.

The former employes also gave the BoU. And DFCU an Ultimate of less than 2 weeks to clear them fot the wrong termination of their contracts. This followed after the Aggrieved Crane Bank shareholders already threatened to sue BoU, saying the January 25, 2017 sale agreement was signed by BoU Governor Emmanuel Tumusiime-Mutebile and Mr Juma Kisaame, the managing director of dfcu Bank, without considering the interests of major shareholders of the defunct bank.

The AG has also questioned the source of Shs478.8b the Central Bank injected into Crane Bank in 2016 to keep it liquid.

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