M7 Told BoU Not To Close Crane Bank But They Didn’t Listen

Museveni and the Ruparelia family Museveni and the Ruparelia family

President Yoweri Museveni told cabinet that he tried to restrain Bank of Uganda from closing Crane Bank Limited but the failed to listen to him, Eagle Online reported Tuesday.

The online publication quoting unnamed sources say that Museveni has left the BoU officials to be probed without protection because he told them not to close Crane Bank but they did not listen to him.

In a cabinet meeting yesterday that was chaired by him, Mr Museveni is reported to have rejected pleas by Finance Minister Matia Kasaija to have the ongoing inquiry in parliament halted.

Kasajia’s request was supported by government Chief Whip, Ruth Nankambirwa. However, as the debate was gaining momentum, the president chipped and said “I advised those people (BoU) against closing Crane Bank,”

“I even went on to suggest that we carryout a silent investigation and I went ahead to contact Abdu Katuntu who agreed with my suggestion but they refused and so let parliament do its work and let them face music” the president is quoted to have said.

President Museveni flatly refused to reign on Cosase so that they (BoU)are not exposed further, BoU claimed that the institution is sensitive and that its exposure will impact on the economy.

When the Bank of Uganda (BoU) sold Crane Bank to Dfcu Bank in January 2017, officials did not expect that they would be probed by parliament and so far, the Governor Prof. Emmanuel Mutebile and his subordinates have been exposed by the Auditor General John Muwanga in his special audit report of BoU on seven defunct banks.

Mr. Muwanga in his report faulted BoU for selling off some of Crane Bank’s assets and liabilities when they had chance to revive it, most especially that BoU claims it spent Shs478.8 billion on the bank during its takeover. Muwanga in his report says he doesn’t understand why BoU spent all that money on CBL and later sold it to DFCU Bank at Shs200 billion.

Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) is using Mr. Muwanga’s report to probe BoU top officials and so far they have been exposed as an institution that is disorganized in terms of writing reports, keeping documents and violation of its own operational procedures.

SOURCE: Eagle Online

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