Kadaga accuses BoU official of blackmail as debate on COSASE report starts

The Speaker of Parliament Rebecca Kadaga yesterday cautioned Ben Ssekabira, a central bank official who was director commercial banking to tread carefully following his accusations of bias he levelled against the commissions on State Authorities and State Enterprises (COSASE) which investigated the closure of seven banks.

In her opening statement before debate on the COSASE report commenced yesterday, Kadaga said Ssekabira had written a letter to her claiming the MPs were biased against him in their investigations.

The committee chaired by Hon. Abdu Katuntu sought to establish whether the right legal procedures were followed by Bank of Uganda in closing Teefe Trust Bank, Co-operative Bank, Greenland Bank, ICB, NBC, Crane Bank and Global Trust Bank.

In his response, Ssekabira said that the report “omits crucial information” that he had presented during the course of the investigation, and hence contained “material misrepresentations”.

“I trust that you will indulge me in having the report corrected before it is adopted and that you will avail me the record of proceedings at the earliest,” he said adding that, “ln the event that my requests herein are not met, l will have no option but to conclude that you [Speaker] and the COSASE have elected to treat me prejudicially and with bias.”

Kirkland said they had submitted information to the Speaker to draw her attention to their concerns and correct the record of the House, or they would challenge the report in court.

They said that some parts of “the Report contains many observations that are based on speculation and conjecture, blatantly false and fabricated information and several recommendations that are illegal on account of violation of the Constitution and other laws of Uganda.”

"It is strange that this Ssekabira claims that the speaker and the committee have bias against him but I have never met the man. I don't know him. How can I be biased? I think he is blackmailing me but this is unacceptable," Kadaga said.

According to the report, Ssekabira oversaw the receivership of three defunct banks: Greenland Bank, Credit bank and Cooperative Bank. Until 2009 he was also an agent of Nile River Acquisition Company which bought the loans of International Credit Bank and Greenland Bank.

The report notes that loans amounting to Shs 135 billion owed to these banks were sold to Nile River Acquisition Company in a manner that was far from transparent.

Meanwhile during the debate on the COSASE report, MPs argued that individual actors implicated in the mismanagement of the process of the closure of the banks.

"The people responsible must be named and their roles in the closure exposed to ease handing them their sentences. Many of the officials should be in Luzira.

The COSASE report has received mixed reaction from the public ever since it wad tabled last week. Some people have argued that it did not recommend tougher action against bank officials who messed up the process of closing some banks.

Some MPs argued that actors like Justine Bagyenda, the former executive director Bank of Uganda in charge of supervision had received just a slap on the wrist.

"Bagyenda, Kasekende and Mutebile should be removed from duty and be investigated by the police," said Gaffa Mbwatekamwa, the MP for Kasambya