By Watchdog reporter
The parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) led by Bugweri County Member of Parliament Abdu Katuntu has summoned the Governor Bank of Uganda Emmanuel Tumusiime Mutebile to explain bank’s incompetence that led to the eventual collapse of Crane Bank.
Mutebile is expected to appear before the committee on Wednesday; he will also answer queries on how banks including Global Trust Bank and NBC closed.
However, during an interview with the Daily Monitor on Tuesday, Mutebile revealed that he will not respect the summon until the case has been disposed of by courts of law.
Last week, Budadiri West Member of parliament Nathan Nandala Mafabi has moved a motion for a resolution of parliament to investigate Bank of Uganda over its role in the supervision of financial institutions.
Nandala who was seconded by Igara County West MP Raphael Magyezi and Nakawa Division MP Michael Kabaziguruka said despite the fact that Bank of Uganda is equipped with rigorous mechanisms for supervision of commercial banks, reports emerged of a decade long internal malfeasance in the management of Crane Bank, collusion, corruption, insider trading and fraud that went undetected or covered up.
On 10 July, 2016, New Vision reported that Bank of Uganda which closed and sold Crane Bank in 2016 to DFCU Bank had dragged former owner (Crane Bank) Sudhir Ruparelia and his Meera investments to Commercial Court for allegedly siphoning shs400 billion from the now defunct bank.
