The Central Bank top administration has been exposed as incompetent having failed to follow right procedures in selling seven commercial banks including Crane Bank which was owned by city mogul Sudhir Ruparelia.
The scathing dossier authored by the Auditor General John Muwanga which he submitted to Parliament reveal that the officials of Bank of Uganda (BoU) including the Governor Emmanuel Mutebile could have deliberately disregarded appropriate channels in disposing these banks.
Mr. Muwanga implicates Muteebile and ilk as having acted in the absence of guidelines, regulations or policies as they closed bank like Teefe Bank in 1993, International Credit Bank Ltd. in 1998, The Cooperative Bank in 1999, Greenland Bank in 1999, The National Bank of Commerce in 2012, Global Trust Bank in 2014 and sale of Crane Bank in 2017 to dfcu Bank.
The report, this website has caused uneasiness win BoU corridors ahead of an interface between senior managers and parliament.
The Auditor General further highlights a skewed process BoU followed and ignored negations while selling Crane Bank to DFCU at a fee of shs 200 billion.
“In the absence of the minutes, I could not determine how BoU selected the best evaluated bidders and how the terms in P&A were determined,” part of the report reads.
He added that BoU did not carry out the valuation of the assets and liabilities of Crane Bank Limited but only relied on inventory report and the due diligence undertaken by Dfcu to reach the P&A agreement.
“I also noted that the P&A did not have complete details of assets and liabilities transferred to Dfcu with their corresponding values; I was therefore unable to establish the status of assets and liabilities transferred to Dfcu.” He says, adding that the some details of the assets and liabilities given to him lacked details of the loans and advances transferred to Dfcu and evidence of valuation of assets before sale “hence it was insufficient to respond to this observation,” Muwanga further explained in the report.
