• Contact Us
  • About Us
  • Advertise
  • Donate
  • Login
Watchdog Uganda
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
Watchdog Uganda
No Result
View All Result

Bagyenda, Kasekende to blame for collapse of NBC, Amama’s co-shareholders tell Cosase

Lawrence Kazooba by Lawrence Kazooba
6 years ago
in Business, Finance
7 0
ShareTweetSendShare

Justine Bagyenda and Louis Kasekende are responsible for the closure of the National Bank of Commerce, the Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) was told on Monday, February 04, 2019.

The shareholders of the defunct National Bank of Commerce (NBC) including former prime minister Amama Mbabazi, were appearing before the Cosase, which has less than three weeks to present its findings before Parliament.

Led by the then Board Chairman Mathew Rukikaire, NBC owners denied before Cosase that their bank was undercapitalized below Shs10 billion which was the reason offered for its closure. Instead they laid blame on the former Bank of Uganda director supervision Bagyenda who made it impossible for the bank to carry out its functions normally.

Now, NBC shareholders want government to fork out Shs295bn for losses and damages caused by the illegal closure of their bank.

The powerful NBC delegation including Mbabazi, Amos Nzeyi and Justice George Wilson Kanyeihamba said the bank was closed on September 27, 2012 however they had followed guidance offered by the Central Bank only for BoU official to deny NBC a lifeline by cutting off hands that fed it.

Former privatisation minister Rukikaire blamed Bagyenda for directing that the Shs7 billion capital they raised be invested in treasury bills and restraining the board and management from using these treasury bills for banking business which frustrated the bank’s efforts to use the new capital to generate income for the bank.

Yet, the BoU continued piling pressure on them that complaining that the capital of the bank was being eroded, which in their wisdom was the BoU acting in bad faith.

Rukikaire said they had raised Shs7bn in four days to meet BoU requirements only for the bank to be closed.

“NBC invested over US$1.7 million into a state of the art headquarter as well as investing over US$1.2 million in acquiring a new core banking software, TENENOS T24 which had been installed and was fully operational.”

Rukikaire said BoU had unjustly insisted on expensing all of the new investments and assets.

He says by the time of the closure, the NBC had 97% of the required minimum capital yet the law puts minimum requirement at below fifty percent hence citing intrigue and conspiracy at the Bank of Uganda as the major driver into the closure of their bank.

According to Rukikaire, in a public notice issued by BOU Deputy Governor, Dr. Louis Kasekende, it was claimed that the takeover, winding up and immediate purported sale of NBC to Crane Bank was done to protect the interests of depositors and maintain the stability of the financial secto, which was far from the truth since NBC depositors’ interests were not under any threat at the time of the closure.

Cosase is probing the closure and disposal of defunct commercial banks 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).

Cosase chairman Abdu Katuntu notes that by February 22, the committee will have finished its report and hand it over to parliament.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
Share43Tweet1SendShare

Related Posts

Hon. Raphael Magyezi
Agriculture

Yara East Africa and Asili Agriculture Launch Agri-Hub in Kiryandongo to Advance Farmer Knowledge and Food Security in Uganda

4th July 2025 at 19:06
The Queen’s Ball, a high-profile fundraising gala, will bring together entrepreneurs, diplomats, corporate leaders, and Buganda Kingdom officials to foster dialogue, reduce stigma, and support grassroots mental health efforts.
Business

Speke Resort Munyonyo to Host UNESCO Africa Engineering Week 2025

4th July 2025 at 10:07
Business

Who is Bosco Muwonge, Uganda’s elusive real estate billionaire?

4th July 2025 at 08:16
Next Post

Ab'eMafubira balumiriza Ssentebe waabwe okubatundira mu ttaka, Balajanidde Bamugemereire

  • Prostitution in Uganda- Courtesy Photo

    10 dangerous hotspots known for prostitutes in Kampala

    1109 shares
    Share 444 Tweet 277
  • LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

    2286 shares
    Share 914 Tweet 572
  • Silent Billionaire Bosco Muwonge Buys Mukwano Arcade at UGX 250 Billion Cash Down

    27 shares
    Share 11 Tweet 7
  • Uganda’s Billionaires 2025: Once Again Sudhir Ruparelia Leads a Resilient Pack

    43 shares
    Share 17 Tweet 11
  • LIST : Gov’t releases Revised Salary Structure for Teachers, Police, and Prisons Staff for FY 2024/2025

    119 shares
    Share 48 Tweet 30
Facebook Twitter

Contact Information

Watchdog Uganda is a portal for solution journalism, trending news plus cutting edge commentaries in the fields of politics, security, business, tourism, entertainment, technology, agriculture, climate change, environment, public health et al. We also give preference to Ugandan community news and topical discussions. The portal also publishes community news and topical discussions.

Email: editorial@watchdoguganda.com
To Advertise:Click here

Latest News

Hon. Raphael Magyezi

Yara East Africa and Asili Agriculture Launch Agri-Hub in Kiryandongo to Advance Farmer Knowledge and Food Security in Uganda

4th July 2025 at 19:06
Chancellor of Jinja Diocese and Bishop’s Secretary, Fr. Gerald Mutto

Preparations for St. Gonzaga Gonza Day celebrations complete 

4th July 2025 at 17:54

Check out

  • Trending
  • Comments
  • Latest
Minister Muruli Mukasa

LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

24th May 2020 at 10:45
Pregnant woman

Shock as 17-year old boy impregnates his two sisters during Covid-19 lockdown 

17th June 2020 at 08:17
Sudhir Ruparelia is set to speak at business forum in United Kingdom

Billionaire Sudhir’s wisdom on how to invest in real estate

0

How a boy’s destiny turned from cotton grower to communications guru

0
Hon. Raphael Magyezi

Yara East Africa and Asili Agriculture Launch Agri-Hub in Kiryandongo to Advance Farmer Knowledge and Food Security in Uganda

4th July 2025 at 19:06
Chancellor of Jinja Diocese and Bishop’s Secretary, Fr. Gerald Mutto

Preparations for St. Gonzaga Gonza Day celebrations complete 

4th July 2025 at 17:54

© 2025 Watchdog Uganda

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News

© 2025 Watchdog Uganda