We Want Mutebile: COSASE Throws Out BoU Officials as Probe Into Closure of Commercial Banks Resumes

Posted On: August 21, 2019
Posted By: Anita Atuhaire

Members of Parliament on the Committee on Commissions Statutory Authorities and State Enterprises (COSASE) turned away officials from the Central Bank due to the absence of the Governor Emmanuel Tumusiime Mutebile yesterday.

The Executive Director in charge of supervision Dr Tumubweine Twinemanzi who standing in for Mr Mutebile, failed to explain to the committee why the governor had not showed up.

“The governor has not been able to attend and I am not privy to the detail on why he is unable to attend. He asked me to come and represent him,” Dr Twinemanzi said, prompting the meeting to end prematurely.

According to the Auditor General’s report review, Mr Mutebile did not appear in the subsequent meetings yet he is the institution’s accounting officer.

In a special audit report last year, Auditor General, pointed out weaknesses in the management of Central Bank during the closure of at least seven commercial banks.

These include Teefe Bank (1993), International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and Crane Bank Ltd (CBL) in 2016.

MPs demanded the presence of the Governor for the meeting to proceed today without fail.

BoU officials were summoned to explain irregularities in the closure of Cooperative Bank to the MPs..

“There are many issues raised in the committee which cannot be answered by BoU staff. The Governor must appear in person to explain why he closed Cooperative Bank and whether the procedures were followed,” said Mr Mubarak Munyagwa (Kawempe Division South MP), the committee chairperson.

The Speaker, Rebecca Kadaga instructed the committee to re-investigate the closure of Cooperative Bank two weeks ago in a letter dated July 26, 2019.

Tushabe Chris Karobwa filed a petiton accusing BoU officials of mismanaging issues of the Cooperative Bank in receivership.

In his petition, Mr Karobwa claimed he was a victim of BoU fraud and his “risky contribution in fighting and exposing corruption in BOU” should not simply be washed down the drain to benefit the wrong doers.

He said the former committee chairperson Mr Abdul Katuntu partly handled his case and wants the new Cosase to compete the probe into Cooperative Bank.