The auditor general should reveal the audit firms in the B.o.U forensic audit

Kagenyi Lukka

By Kagenyi Lukka

The speaker of parliament Rt Hon Rebecca Kadaga rightfully overruled her deputy Jacob Oulanya.

The latter had sided with Louis Kasekende, the deputy governor of the central bank to block the much awaited forensic audit into the collapse of commercial banks, but with specific attention to the scandalous donation of crane bank to dfcu for a song of a paltry credit of 200 billion shillings yet its assets were over Uganda shillings 1.3 trillion.

The forensic audit was a directive of parliament’s committee on State Authorities and State Enterprises following revelations from the audit by the auditor general which revealed anomalies in the scandalous give away of crane bank.

Following this directive, the auditor general shortlisted audit firms from which some were to do the forensic audit at BOU.Some of the shortlisted firms included; Deloite&Touche,KPMG,Ernst and Young and Price Waterhouse Coopers.

Victoria University

The shortlisting of PWC and KPMG raised public uproar as the two firms were not conflicted, but also have an indelible record of incompetence.KPMG audited crane bank between 2004/2007 and 2013/15 while PWC audited cbl between 2008-2010.

The same firms were slapped with a multi billion pound fine in 2017. KPMG was fined more than $6.2 million (£4.8 million) by the US Securities and Exchanges Commission (SEC) for failing to properly audit an energy company that grossly overstated the value of its assets while PwC was also hit with a £5.1 million fine and severely reprimanded by UK watchdog the Financial Reporting Council, after admitting misconduct when auditing professional services company RSM Tenon Group in 2011.

The KPMG scandals related to state capture in South Africa could not as well be overemphasized.

Forensic audit starts, BOU is stormed.

The media reported yesterday 17th May 2018 that a team of over 10 auditors stormed BOU ready for the forensic audit despite frowning by Dr Louis Kasekende and the impugned advice by the solicitor general.

It was further reported that auditors faced some resistance from security but were nevertheless allowed to proceed.

It should be recalled that before this exercise, the auditor general, Mr. John Muwanga on 15th May 2018 wrote a letter to the governor about an impending audit.

‘I have received the clarification from the Rt Hon Speaker in a letter ref AP116/161/01 dated 10th May 2018 and copied to you guiding me to proceed with the audit and submit the report to parliament as required by law. In view of the above, this is therefore to inform you that the team will be resuming the exercise commencing on Thursday 17th May 2018’.

While we wait for the audit and its findings, with curious attention to the reckless and rushed takeover of cbl and its eventual donation to dfcu bank, the auditor general should do the public justice by naming the firms or names of auditors involved.

This is a matter of great public interest whose findings have an impact on how BOU handles the business of commercial banks.

Revealing the identities of auditors will develop public confidence and trust in the exercise as the air about the possibility of having contracted impugned firms.

Kagenyi Lukka is a current affairs analyst and an aspiring MP,Ikiiki.



Please enter your comment!
Please enter your name here