Tuesday, May 21, 2024
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Defunct Banks’ Customers Who Lost Money, Properties To BoU Set To Get Justice

Do you now people who lost their money when one of the seven defunct banks closed? Are you one of them?

They have an opportunity to get justice after the Committee On Commissions, Statutory Authorities and State Enterprises (COSASE) set up a sub-committee to look into petitions of clients of defunct banks whose properties were unfairly sold off by the Bank of Uganda (BoU).

It is reported that BoU sold off properties of clients of defunct banks even after they had cleared their loans.

The seven banks in question include Teffe Bank, International Credit Bank Limited, Greenland Bank, Co-operative Bank, National Bank of Commerce (NBC), Global Trust Bank and Crane Bank Limited.

The six member committee headed by Makindye West, Ibrahim Kasozi will handle handle residual matters that were referred to COSASE by the previous committee’s leadership led by former Chairperson, Abdu Katuntu.

Other members on the committee include; Medard Lubega Ssegoona (Busiro East), Stella Kiiza (Kyegegwa Woman), Nathan Itungo (Kashiri South) and Sheila Mwine (Kiruhura Woman).

The Sub-Committee has been given a timeline of one month within which to report back to the main committee after establishing the status of properties in question and the conduct of BOU in this matter.

While interfacing with officials from Bank of Uganda today, Kasozi said a number of clients with the seven defunct banks mainly from Cooperative bank have already lodged in complaints against BoU that has still failed to return their assets even when they cleared their loans.

The Bank of Uganda team led by Louis Kasekende had appeared before the Committee to respond to 2017 audit queries among which include issues to do with impairment amount due from Crane Bank Limited (in receivership), impairment of Bank of Uganda’s capital, non-compliance with the Public Procurement and Disposal of Public Assets (Contracts) Regulations 2014.

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