Kadaga reiterates parliament directive to Auditor General to audit BoU for 7 defunct banks

By our reporter
Speaker Rebecca Kadaga has reiterated Parliament’s directive to the Auditor General to do a special audit on more than seven banks closed by Bank of Uganda in thr recent years.

In a letter dated May 10 2018, Ms Kadaga told AG John Muwanga to go ahead with the audit as directed by Parliament and submit his report to her office.

Kadaga was responding to Muwanga’s letter in which he sought clarification on the special audit on the defunct banks in light of deputy speaker Jacob Oulanyah ruling that investigations into BoU should be differred.

“The request from the Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) was premised on the finding by that committee that there has never been any report by the Bank of Uganda on the defunct banks,” Kadaga wrote, reacting to Mr Muwanga’s 23 April letter to her.

Kadaga also told Muwanga’s that there was no public institution which was not subject to audit.
” Audits are processes directed by the constitution, ” she wrote, explaining that auditing how closed banks were handled should be the norm and has nothing to do with the BoU roles in the supervision of financial institutions.

COSASE on November 28th directed BoU to be audited by the Auditor General after it failed to produce any report in the case of seven defunct banks.

Among closed banks include Teefe, Greenland, International Credit Bank, Cooperative Bank, National Bank of Commerce, Global Trust and most recently Crane Bank.

Spotlight fell on BoU after it emerged Crane Bank which was worth more than sh1.3 trillion was sold as a mere Sh200 billion to dfcu Bank, which act took it on credit.

The sale of Crane bank was done by BoU without involving the shareholders of the bank, who until now have never officially known how much the bank was sold.