Parliamentary Committee on commission’s state and statutory enterprises (COSASE) has given Bank of Uganda up to Monday next week to avail all the required documents in the probe of the closure of seven defunct banks.
This today as the committee chaired chaired by Bugweri county mp Abdul Katuntu had started hearing queries into the closure of the banks.
The banks in question include Teefe Bank in 1993, International Credit Bank Ltd in 1998, Greenland Bank in 1999, The Co-operative Bank in 1999, National Bank of Commerce in 2012, Global Trust Bank in 2014 and the sale of Crane Bank Ltd to DFCU in 2016.
The probe follows a letter by the committee last year requesting the Auditor General to undertake a special audit on the closure of these commercial banks by the Central Bank after the controversial closure of crane bank.
The report from the Auditor General, John Muwanga which was made public in August queries on how the central bank handled the closure of the seven commercial banks and how bank of Uganda spent over 400 billion on the closure of crane bank and half of this money is yet to be recovered.
The chairperson of the committee Abdul Katuntu in his introductory remarks noted that the objective of this process is to see if any Bank could be handled better in accordance with the law.
However the committee could not go any further with scrutiny as bank of Uganda led by the governor Emmanuel Mutebile did not have some of the supporting documents that the committee needed hence pushed to next week Friday.
