The former Bank of Uganda Director for Supervision, Justine Bagyenda and together with Ms Margaret Matovu and Apollo Obbo, two other former directors will today face the Parliamentary Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) investigating the controversial closure of seven banks.
The trio according to sources will appear to clear the air about liquidation reports on closed banks running into billions of shillings. On Tuesday, Benedict Ssekabira, another BoU Director facing the spotlight told MPs that he submitted liquidation reports to Bagyenda and the two other directors when he handled the liquidation of three banks.
The liquidation reports detail how assets of International Credit Bank, Greenland Bank and Co-Operative worth over Shs 100b were disposed of. Evidence has since been brought before the MPs indicating that BoU officials wrote off Crane Bank Ltd loans amounting to Shs600b through unclear circumstances.
The MPs inquiry is also focusing on the mismanagement of closed banks by BoU after the Auditor General Mr John Muwanga issued a stinging criticism of the central bank in a special audit that cited massive flaws in the closure of Teefe Bank (1993), International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and the sale of Crane Bank Ltd (CBL) to dfcu (2016).