The Parliamentary Commission, Statutory Authorities and State Enterprises (Cosase) adjourned to Tuesday, a meeting so that Bank of Uganda (BoU) officials can prepare themselves better.
On Monday, the executive director- Supervision at BoU, Dr Tumubweine Twinemanzi presented an uncoordinated documents concerning the issue of undercapitalisation of seven banks.
Because of too much pressure from the questions he failed to answer, he asked for more time to get more copies of his presentation.
That’s when Cosase chairperson Abdu Katuntu adjourned the meeting for 20 minutes.
Unfortunately, when Twinemanzi returned, he had only one copy and could not give answers to why he came back with only one document yet they are seven banks. This made the members uncomfortable, thus asked the chairman to send the BoU officials for better preparation.
“We shall finish this exit meeting tomorrow (Tuesday 11:00 am) and there is no opportunity to adjourn it anymore,” said Katuntu.
This was the last meeting between Cosase and officials from the central bank over the closure of the seven defunct banks.
Meanwhile, before the adjournment of the meeting, Busiro East Member of Parliament Medard Segona asked Twinemanzi to explain why most shareholders of the defunct banks were complaining of BoU’s malicious act of closing banks without keen investigations.
“Twinemanzi most of the banks are complaining about the killing of their banks what do you have to say?” asked Segona.
In his defence, Twinemanzi said, “Shareholders of Global Trust Bank wrote to BoU Governor saying that they were frustrated with numerous calls to re-capitalize the bank. Global Trust Bank made profits in 2011 but this was wiped out by loses made in 2012. If an institution has been posting losses from inception and made profits for only one year, it’s an anomaly,”
The probe into the closure of the seven defunct commercial banks by BoU commenced on November last year following Auditor General’s report which showed improper ways used by BoU while closing these banks. The report of this probe is supposed to be presented before Speaker of Parliament on 22nd of this month.