The CentralBank administration has failed to explain how it used shs 478 billion on operations of Crane Bank before handing it over to DFCU Bank IN January last year.
Speaking to journalists on Monday, Anita Among, the Vice chairperson of Parliament’s Committee on Commissions, Statutory Authorities said that Bank of Uganda (BoU) officials had failed to account for the money. They were asked to bring valid and satisfactory documents.
“They tendered in documents that could not convince the committee members on how Shs478.8 billion was spent. Some of the documents were duplicated by BoU officials,” Among said.
Her revelation came after several legislators last week wondered why BoU could spend Shs478b to keep a bank that needed Shs157b capitalization afloat.
COSASE also found out that there were several anomalies in the loan book. “There are instances where two clients are attached to the same loans. At the time of takeover by BoU, CBL loans amounting to Shs768b constituted 65 percent of the total assets. Shs529b worth of net loans were transferred to Dfcu Bank except the insider loans,” Among added.
Analysts say these loans could have been duplicated to undervalue Crane Bank at the time of sale for the benefit of DFCU.
The committee is probing the sale and takeover of seven commercial banks after the Auditor General’s report pointed to possible corruption among BoU officials.