By Kagenyi Lukka
The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) yesterday kick started probe into irregularities that marred the Closure of defunct banks, 1993-2017.
The irregularities, however much previously debated were recently confirmed by the auditor general in his 94 page report, the Special audit report on defunct commercial banks dated 27/8/2018.
Looking panicky, contemptuous and unready, the BoU team was sent back packing by the rejuvenated committee to go and bring sufficient documentation necessary to respond to queries raised by Mr Muwanga in his audit report.
BoU will go back to parliament next week on Friday.
I intend to write on BoU’s first appearance at length in my subsequent article.
That notwithstanding, one of the officials that the committee will quiz is Justine Bagyenda, the disgraced former executive director for commercial bank supervision at the Bank of Uganda.
For beginners, Justine Bagyenda was the main actor in the crane bank saga who seemed to have had a premeditated motive to disable and cripple crane bank while wedging a broader economic war against Dr Sudhir Ruparelia, who was the majority shareholder of the formerly glorious Crane bank Limited.
I have also previously exposed her dealings with conflicted lawyers of MMAKS and AF Mpanga Advocates who would later get which in my view were exaggerated payments that Bagyenda sanctioned herself.
Bagyenda, who oversaw CBL get donated to DFCU at Ugx 200 billion didn’t bother to ensure that an independent evaluation of CBL assets and liabilities was made.
Her steps and movements in this corruption scandal were highly suspect and pointed to possible collusion, and also a possibility of her being a direct beneficiary of the dirty and sweetheart deals between BoU, the receiver and seller of crane bank, and DFCU ,the contested buyer of Uganda’s only latest indigenous commercial bank.
New Evidence exposes Bagyenda and pins her on Crane bank’s bad book
The bad book was also a point of contention in the auditor general’s report as he noted that he was unable to understand how a book of over Ugx 570 billion was given to DFCU at only Ugx 200 bn.
However in a January 25th, 2017 shocking Letter to Juma Kisaame, titled Compliance Accommodations, Bagyenda exhorted the Exiting DFCU MD to treat the bad book clandestinely!
“The assets acquired and liabilities assumed will be reported separately from the DFCU’s balance sheet for the 31st January 2017 end of month reporting to BoU. The first consolidated balance sheet will be that of 31st march 2017,” Bagyenda’s order reads.
Bagyenda further ordered that any acquired performing loans and advances reflected on Dfcu’s balance sheet at integration will be deemed and treated as new to Dfcu and hence eligible for restructuring for purposes of the financial Institutions (credit classification and provisioning requirement.
She then added that all fully provisioned loans and advances acquired by Dfcu will be ring-fenced and managed separately and would not be part of Dfcu’s loan portfolio for reporting purposes until rehabilitated in conformity with the Financial Institution Act.
This latest revelation is a slap on the face of Justine Bagyenda, his then immediate supervisor, Louis Kasekende, Dfcu’s embattled MD, Juma Kisaame and a chain of other actors.
Bagyenda’s order continues to add on believable series that the disguised sale of Crane bank was recklessly ill-motivated.