Kadaga asks LOP to extend Cosase tenure to complete defunct banks probe

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The Speaker of Parliament Rebecca Alitwala Kadaga has written to the Leader of Opposition in Parliament Betty Aol Ochan requesting her to extend the tenure of the Parliamentary committee on Commissions, State Authorities and State Enterprises (Cosase) to February 20, 2019.

According to the speaker the request is to enable the committee complete its investigations into the alleged illegal closure of the seven defunct banks.

Cosase chairperson Abdu Katuntu Katuntu on Thursday informed officials of Bank of Uganda that the top leadership of parliament has written to LOP Betty Aol Ochan requesting for an extension of the tenure of the committee.

The tenure of the current leadership of the committee that is chaired by Bugweri County legislator Abdu Katuntu and deputized by Bukedea Woman MP Anita Among ends on the 13th of January 2019 and will be replaced by Mubarak Munyagwa and Moses Kasibante as chairperson and vice chairperson.

Meanwhile the the committee has tasked the office of the Auditor General to carry out a thorough audit into the 478 billion shillings that Bank of Uganda injected into the liquidity of Crane Bank Limited

The officials from bank of Uganda also faced the wrath of the committee members on why they wrote to the management of crane bank limited restricting them from lending money, opening up accounts, paying directors salaries, increasing the staff salaries and opening up new branches.

In the same meeting, the bank of Uganda officials also confirmed to the committee chaired by Bugweri County legislator that they did not organize a proper well documented plan to recapitalize Crane Bank limited during the time it was facing financial constraints.

The committee that will resume on the 8th of January 2019 has finalized it's interface with Bank of Uganda but with a commitment from the Governor Emmanuel Mutebile that the interaction has enabled them as bank of Uganda realise some of the challenges and hence promised enact strong policy measures intended at restoring the now tainted image of the central bank.

The committee has also handed Bagyenda back her passport but on condition that she has to appear before the committee on the 20th of January 2019

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