MPs summon Bagyenda over inventory reports of closed banks

MPs on the Parliamentary committee on Commissions, Statutory Authorities and State Enterprises (COSASE) yesterday summoned the former executive director Bank of Uganda in charge of Supervision, Justine Bagyenda and others to explain her role in the closure of banks.

The embattled Bagyenda was sacked from BoU this year and under her watch, a number of banks were closed or sold.

The MPs are probing the sale/closure of seven banks under the guidance of a special audit report by the Auditor General.

So far, they have probed the closure of Teefe bank in 1993  and tentatively disocvered that it was closed under unclear circumstances.

Other banks whose closure or sale shall be probed are: International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and the sale of Crane Bank Ltd (CBL) to dfcu (2016) at Shs 200bn.

Bagyenda and two others are said to have received the inventory reports on  the closure of ICB, Greenland and Co-operative Bank, but did not submit them to the governor.

During a session with MPs yesterday, BoU officials said the reports were in the custody of Bagyenda and others prompting the summons.

The officials could not produce the list of depositors, cash balances, the book value of physical assets among other items in regards to ICB Bank.

The director financial markets and development coordination Benard Sekabira who was the liquidator of the said banks explained that he filed the said reports and submitted them to three former BoU officials including Justine Bagyenda, Margaret Matovu and Apollo Obo who were supposed to submit them to the governor.