Tuesday, December 6, 2022
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COSASE Orders Withdrawal of Bagyenda’s BoU Car, Security

Members of Parliament have today directed Bank of Uganda (BOU) to withdraw the vehicle and security they have been providing to their former Director Bank Supervision, Justine Bagyenda.

For some months now Bagyenda who retired in July 2018 has been appearing before the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) alongside BOU officials to answer queries related to the sale of seven commercial banks.

The affected banks include; Teefe Bank which was closed in 1993, International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and the recent 2016 sale of Crane Bank Ltd to DFCU at Shillings 200 billion. 

Although she retired as a bank staff, Bagyenda has been using bank security and a vehicle from the date of her retirement. However, following reported security threats on her life, BOU decided to give Bagyenda a car and a security guard from 1st January this year to June 2019.

However, MPs sitting on COSASE directed the bank to withdraw the vehicle and security from the former BOU employee. Committee Vice Chair Anita Among said they are probing the wastage of public resources, but the bank of Uganda has gone ahead to continue spending public resources to cater for a non staff at the bank.  

She says there is no law under which Bagyenda, a retired staff should continue having those resources. In their defense, BOU said it has been the decision of the board to give Bagyenda security and a vehicle. 

According to Jan Tibamwenda, the Acting Executive Director Administration, after consultation with security, administration of the bank decided to give Bagyenda the resources. He said these were only for her to keep coming for the COSASE probe. He said all the decisions were made by the board.  

However, MPs said it was the decision of the Government to provide a Ugandan with security and not the bank. Elijah Okupa, the Kasilo County MP said even Parliament writes to the Inspector General of Police who then assesses and decides on security of a person. 

The committee concluded that the vehicle and guard be withdrawn by end of Friday today. They also suggested that an assessment of the financial implication of giving Bagyenda a vehicle and facilitation of former staff to keep appearing before the committee be submitted to the committee, and also an explanation on whether the BOU officers appearing for the probe were also being paid. COSASE is expected to finalise with BOU as an entity in the sale of the defunct banks today.


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