Parliament has asked the Inspector General of Government (IGG) Justice Irene Mulyagonja to investigate the process in which the Central Bank sold Crane Bank to DFCU Bank early this year.
The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) chaired by Abdu Katuntu issued the directive Tuesday when Bank of Uganda (BoU) officials headed by Deputy Governor Louis Kasekende appeared before Parliament and provided “confidential file” containing details of its expenditure on external lawyers in the Crane Bank case.
The central bank was last week told to present documents indicating how much they have so far spent on Crane Bank matter including hiring external lawyers.
The financial institution was in 2016 taken over by BoU for reportedly posing a systemic risk to the country’s financial sector.
The Katuntu led committee recommended that the IGG should investigate how BoU sold Crane Bank and the probe should last for 3 months to come up with a conclusive report.
Further, Parliament also asked for the detailed expenditure on the lawyers, wondering why BoU’s internal legal department was not put to good use.
The MPs also want to establish whether the procurement of the legal firms representing BoU was subjected to the central bank’s regulations.
Katuntu said his committee would go through the documents and take necessary action.
