Mutebile skips COSASE as businessman pins him over Shs 20 billion compensation

Bank of Uganda governor, Tumusiime Mutebile today skipped a scheduled meeting with parliament's Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) after he asked for more time to get information to defend himself in a case in which a businessman wants Shs 20 billion as compensation for lost property during the closure of Cooperative Bank in 1999.

Mutebile had been scheduled to appear today but MPs were informed, through a letter, that he will not be able to.

Chris Tushabe, the businessman, has accused Mutebile of lying to Parliament so that Bank of Uganda (BoU) does not pay Shs 20 billion the former is demanding from the Central Bank as compensation over the closure of Cooperative Bank.

Parliament is investigating that the central bank mismanaged Tushabe's properties worth Shs 1.42b which he had mortgaged in Cooperative Bank before it was closed and liquidated in 1999.

On August 29, Mutebile told MPs that Tushabe’s demands were not realistic.

But on September 10, Tushabe wrote to COSASE, accusing the governor of lying on oath.

“My claim of Shs3b is about the “Voice Line Facility” which the Governor knows very well. More than Shs3b of my money was transferred from Kasese and kept by the bank at the Head Office, Kampala for safe and easier business transactions because the bank was not yet computerised” Tushabe wrote.

He accused Mutebile of lying to COSASE that BoU did not force him to pay Shs600m for an overdraft the Cooperative Bank had given him before it is closure.