VIDEO: National Bank of Commerce founders reveal how bank was sold off by BOU

Founders of National Bank of Commerce (NBC) have appeared before Commissions, Satutory Authorities and State Enterprises (COSASE) parliament committee to explain the injustice of closing the bank. The directors who included Amama Mbabazi and Amos Nzeyi appeared arguing that their bank was closed off unlawfully by the central bank.

As Katuntu’s reign at the helm of COSASE comes to an end, more irregularities in the closure of defunct banks have been discovered.

This morning, founders of National Bank of Commerce appeared before the Katuntu led Committee to seek for justice for losing Shs.295 Million since the Bank was closed unlawfully.

https://www.youtube.com/watch?v=dU9JAsDXFl4

As the committee interrogated reasons and procedures into the closure of the National Bank of commerce, members of COSASE were concerned that the entry into politics of one of the founders then; Amama Mbabazi; could have largely caused the closure of the bank led by Director of Supervision at the Central bank then, Justine Bagyenda.

As much as the Central Bank allegedly closed NBC for failure to meet the minimum capital requirement set for commercial banks, the founders today disputed these claims; and that the closure was carried out in bad faith.

It also later emerged that the entire loan book of NBC was given to Crane Bank at a discount rate of 35% of the total value, a revelation that shocked members on the committee.

The committee will interface with the central bank officials to answer to the claims raised by the founders of National Bank of Commerce.

National bank of commerce was closed in 2012 and the central bank shifted the deposits of the clients to Crane Bank, the biggest local bank in terms of assets and deposits in the country then which was also later taken over and sold to DFCU in 2017.