20 questions for Bank of Uganda from Auditor General on defunct banks

By our reporter

Following the report to parliament by the Auditor General, we compile 20 questions managers for Bank of Uganda over the defunct banks.

1. Why did BoU refuse to avail copies of the inventory for Teefe Bank to the Auditor General?
2. Why were there no policies for the purchase of GTB, National Bank of Commerce and Crane Bank Limited?
3. Why were there no valuations for the sale of GTB, NBC and CBL?
4. Why were there no movement schedules of the assets of Greenland, ICB and Cooperative Bank from 2002 because the AG failed to verify the movement of assets of the 3 banks from Sh117.6 billion to sh19.7 billion?
5. Why did BoU sell the loans of ICB, Greenland, GTB and Cooperative bank at a discount of 80% but sold ICB, Greenland and Cooperative banks at 93% discount?
6. Why were negation meetings regarding the sale of ICB, Greenland, GTB and Cooperative banks not given to the availed to the AG?
7. So what happened that BoU failed to provide a schedule of the CBL loans and collateral that were transferred to DFCU, leading to the AG failing to establish the values of what was transferred?
8. Isn’t BoU bothered that AG could not establish how sh200 billion was paid by DFCU for the bad book worth sh570 billion?
9. And why did BoU fail to sell off the shares of Greenland bank in African expert-Import Bank worth USD45,000, and from records they had accumulated dividends with USD22,410?
10. Why has the process of settling liabilities of ICB, Cooperative bank, and Greenland bank taken over 17 years?
11. Why was there no MoU between government and BoU to guarantee repayment when the former intervened with sh91 billion to pay insured and uninsured deposits in Cooperative Bank, ICB and Greenland Bank?
12. What explanation does BoU have Cooperative bank, ICB and Greenland who had a total of sh101.073 billion but BoU paid a total of Sh104.532 billion…who pocketed the sh3.4 billion discrepancy?
13. So if the government injected sh504 billion to stop a run on Crane Bank, ICB and Greenland, and the central bank says it cannot recover the balance from ICB and Greenland, why then does BoU want Crane bank shareholders and DFCU to pay back the balance?
14. And why is that BoU doesn’t have full ledgers in relations to liquidation costs for ICB, Cooperative and Greenland banks?
15. AG says during the management of CBL, the statutory manager did not have a plan to return bank into compliance, why was it the case?
16. Why did BoU and its auditors refuse to sign off the CBL annual report and financials for the year ended December 31 2017 which was prepared by the CBL statutory manager?
17. And then, why did the statutory manager not avil financials for January 1 2017 to January 25^th 2017?
18. Why did BoU handpick DFCU of all institutions that showed interest in taking over the bank?
19. Can BoU explain why the public should have no reason to believe its activities especially in bank closures are illegal, infested with corruption, and prone to fraud?
20. Why has the Financial Intelligence Authority looked away all this while?