Bank of Uganda fails to provide documents for Teefe Trust Bank

By Stephen Kalema 

Legislators sitting on the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) were left stunned when Bank if Uganda officials failed to present an inventory report detailing the acquired assets and liabilities of Teefe Trust Bank. The Central Bank took over the then defunct bank in 1993.

At the start of the session on Monday the committee asked Bank of Uganda officials,  led by Governor Emmanuel  Mutebile  and his vice Louis Kasekende to present the inventory report that shows the assets and liabilities of the bank which they took over. However, Kasekende answered back that by the time of Teefe Bank closure, inventory report was not necessary.

“Bank of Uganda has no inventory report on Teefe Bank because, at the time of its closure in 1969, law was effective and nature of documents required did not include the inventory,”  Kasekende answers the committee.

This rubbed the committee chairman Abdul Katuntu to the wrong way, and cautioned Bank of Uganda officials that the probing will not be useful if the inventory report is not presented before the committee.

“This process  can’t be useful when you don’t know what you took over because an inventory report shows what you took over; assets and liabilities,” Katuntu said.

The Executive Director of supervision Bank of Uganda, Dr Tumubweine Twinemanzi then responded, “We are unable to find any inventory reports concerning Teefe Trust Bank. So we don’t have its inventory reports,”

The Cosase committee wondered why officials asked for a full week to get prepared yet they cannot even produce the most important report.

The spark for Cosase to probe Bank of Uganda was an Auditor General John Muwanga report which indicated loopholes on how Bank of Uganda conducted the closure seven banks; Selling of Crane Bank to DFCU in 2016 at Shs200bn, Global Trust Bank (2014), National Bank of Commerce (2012), International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), Teefe Trust Bank (1993).