MPs up in the arms as Kasekende attempts to block auditing of BoU

By our reporter

On 19 April, 2018, Bank of Uganda Deputy Governor Louis Kasekende wrote to Attorney General protesting a forensic audit by Auditor General into the operations of the Central Bank among which led to the closure of Crane Bank.

In his letter, Kasekende said the investigative audit on the resolution process of Crane Bank Ltd (in receivership) offends the sub-judice rule.

However, Members of Parliament have opposed Kasekende’s move saying that the Deputy Governor is trying to shield a mafia clique at the Central Bank which has done more harm than good to the economy of Uganda.

The Shadow Attorney General, Wilfred Niwagaba (Ndorwa East) said the Rules of Procedure give the discretion of interpreting whether an inquiry amounts to subjudice only to the Speaker and not a potential witness before a parliamentary inquiry.

Niwagaba said BoU cannot stop such an inquiry if the Speaker rules that it does not offend the law on subjudice.

Budadiri West MP Nandala Mafabi said the Auditor General must be given freedom to audit the Central Bank adding that the forensic audit should focus on the conduct of Justine Bagyenda, the former director of commercial banks supervision at the bank and other officials who were charged with the responsibility of carrying out routine supervision of Crane Bank.

Meanwhile, Abdu Katuntu, the chairperson of the committee on Commissions, Statutory Authorities and State Enterprises (COSASE) recently directed the Central Bank to provide the Auditor General with all the required documentation relating to the closure of Crane Bank.

“Entities being audited do not have the liberty to choose what should be audited. The arguments being raised by the bank of subjudice do not apply to auditing,” Katuntu told BoU.