Uganda’s financial sector is full of ethical and governance challenges, former Executive Director, Supervision at Bank of Uganda, Justine Bagyenda has said.
Her remarks are contained in her hand over report to her successor, Twinemanzi Twinobwine where she highlighted the challenges faced by Bank of Uganda in streamlining the sector.
“The financial sector continues to face governance and unethical challenges across the board. This includes concealment of information, provision of misleading information and possible collusion, they may need to strengthen market intelligence section of the Directorate,” Bagyenda warned.
This was revealed on Thursday during a meeting between Bank of Uganda officials and Legislators on the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) that is investigating the criteria used by the Central Bank in closing seven defunct banks between 1993-2016.
This was after the Committee tasked the Central Bank to produce the appointment letters of Ben Ssekabira who was then staff at the Bank and appointed as a liquidation agent to oversee the liquidation process of Greenland Bank.
Asked if he produced progress reports about the process, Ssekabira told the Committee he had, which reports the Governor, Emmanuel Mutebile denied having come to his office.
Twinemanzi tabled a per diem memo authored on 22nd July 2008 announcing Ssekabira’s new roles and undertake a study of Greenland liquidation on top of the liquidation roles he was playing with International Credit Bank and Cooperative Bank.
COSASE Chairperson, Abdu Katuntu told off the Bank officials that a memo can’t serve as an appointment letter asking, “Is there an appointment letter containing terms of his reference?”
Twinemanzi answered: “We do have a memo that lays out terms of reference for Greenland assignment.”
When asked if Ssekabira presented progress reports on the liquidation process of Greenland Bank, International Credit Bank and Cooperative Bank, Margaret Matovu, former Director Commercial Banking told the Committee that Ssekabira used to make regular reports to the department and some of them were forwarded to the Governor’s office.
On examination of the documents produced, Katuntu pointed out that the file has no single progressive report on the liquidation process.