Troubled former Executive Director in charge of Supervision at Bank of Uganda, Justine Bagyenda Wednesday stunned Parliament’s Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) when she said the MPs should ask BoU current team about the seven controversially closed banks.
Bagyenda, was dropped from Financial Intelligence Authority board recently reasoned that resigned from the Central Bank and was therefore not in possession of documents about the closed banks.
COSASE is currently probing BoU officials on the criteria used by the Central Bank to close the seven defunct banks. This is after a special audit report by the Auditor General revealed rot in the manner the closure of these banks was conducted .
The banks in question include Teffe Bank , International Credit Bank Ltd , Greenland Bank, The Co-operative Bank, National Bank of Commerce Global Trust Bank and Crane Bank Ltd.
COSASE Chairman, Abdu Katuntu asked Bagyenda to appear before the Committee to explain why she never furnished the Governor with reports regarding liquidation status of some of the seven closed banks being investigated by the Committee.
This is after BoU Governor, Prof. Emmanuel Tumusiime- Mutebile admitted that he was never furnished with reports detailing how liquidation process of some of the closed banks was conducted.
Anita Among, COSASE Vice Chairperson posed a number of questions to Bagyenda, demanding answers on why decision was reached to sell the loans of International Credit Bank, Greenland Bank and Cooperative Bank which were around Shs135bn and sold at Shs8Bn.
She also asked why the original price for the loan portfolio was reduced from USD10M to just USD5.2M that was paid by Nile River Acquisition.
In response, Bagyenda said: “Through my recollection, I stated that I retired from the services of the Central Bank and therefore, I don’t have any documentation in my custody to allow me to answer all these questions because this Committee is evidence based. All I can say is that all questions that have been asked are really well documented in the files that I left behind in the Bank.”
Bagyenda’s response infuriated MPs, with Aruu County MP Odonga Otto warning, “We need to harden here, the big fish is in the house, these are people who cause problems to the young people.”
Committee Chairman Katuntu told off Bagyenda that there was no use being evasive and asked her to sit with the current Bank of Uganda team to provide responses to the Committee.
