Bank of Uganda officials led by Governor Emmanuel Mutebile, his deputy Louis Kasekende and Executive Director in charge of Supervision Tumubweine Twinemanzi have yet again failed to present key documents they relied on to close Teefe Trust Bank to the investigative committee of Parliament.
Appearing for the second day before The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) chaired by Hon. Abdul Katuntu Mr. Mutebile and his team had no idea of the whereabouts of the inventory of Teefe which was closed in 1993.
An inventory is a list of items of the liabilities and assets of an institution.
On similar occasions Bank of Uganda closed most of the commercial banks on grounds of insolvency.
However, it is the inventory report that could ratify BoU’s insolvency claims.
On Monday Mr Mutebile and his colleagues met with COSASE members to respond to the Auditor General’s queries he raised in his 80 page report following an extensive investigation in the closure of seven banks including highly contested sale of Crane Bank which belonged to affluent businessman Sudhir Ruparelia.
In his investigation, Mr John Muwanga indicated that Bank of Uganda didn’t avail him with records detailing the liquidation of Teefe Bank after which it was deemed bankrupt and shutdown.
“I was not availed with the Inventory report, loan schedules, customer deposit schedules and Statements of affairs of Teefe Trust Bank to enable me to fulfill the specific audit objectives. Due to this limitation, I could not assess the status of the assets and liabilities of Teefe Trust Bank from closure to date,” Muwanga said in his report.
Responding to the query, BoU’s Twinemanzi confessed to the MPs that he had failed to trace the inventory of Teefe Bank in the Central Bank’s archives.
His confession drew ire among MPs who questioned whether BoU had no report or deliberately rejected to provide the document for selfish reasons.
Earlier in his opening remarks, the Governor while addressing the committee said, “I want to appeal to this committee to be mindful of the ongoing court cases as they might have an effect on how much information we shall reveal during this probe.”
The committee deputy chairperson Hon Anita Among then wondered whether BoU which has failed to present an inventory simply closed the bank.
Kalungu West legislator Joseph Sewungu was prompted to conclude that Bank of Uganda’s failure to avail the documents is s systemic move to ‘bury evidence’ which implicates the officials in the illegal closure of the seven banks.
However COSASE boss asked MPs not to draw conclusions until BoU has proved so.
The development leaves Ugandans wondering whether Bank of Uganda has guidelines on how Commercial banks are opened or closed.
The supervisor said they are yet to get the guidelines.
Buhweju lawmaker Francis Mwijukye requested the committee to compel BoU officials to take oath because, “they are lying.”
This becomes the second time for Bank of Uganda managers to appear before the committee and failing to defend their decision in closing the seven banks.