Bagyenda sold Global Trust Bank before its closure

Bagyenda appearing before COSASE

Former Bank of Uganda Executive Director for Commercial banks Supervision, Justine Bagyenda, sold Global Trust Bank [GTB] even before its closure, according to a report presented by Mbarara Municipality MP, Micheal Tusiime.

Hon. Tusiime presented to the committee a non-disclosure agreement [NDA] that was signed between Bagyenda and DFCU bank on the 10th July (the bank was taken over by Bank of Uganda on July 25).

The NDA was to give confidential information to dfcu. This is contrary to section 40 of BoU act that says no confidential information of a financial institution can be shared without its consent.

In addition, Bagyenda signed the agreement contrary to the BoU Act that says only the governor; deputy governor in the presence of the company secretary can sign an agreement of BoU.

The agreement was not witnessed by the company secretary. The Section 3 of BoU Act says all agreements of BOU must be witnessed by the company secretary.

Bagyenda did not get the governor, deputy governor or board approval. She claimed there was approval. The BoU company secretary read minutes of the meeting and stated there was NO APPROVAL.


Global Trust Bank was taken over on the 25 July at 8am. By 3pm it had been sold to dfcu. This was contrary to section 89(5) that says BoU should take measures to make the bank complaint with prudential standards. This was not done.

Justine Bagyenda signed a confidential agreement with DFCU’s Juma Kisaame as the potential Acquirer of the defunct GTB in 2014.

The confidential Agreement was tabled before the Committee on Commissions Statutory Authorities and State Enterprises (COSASE).

By doing so, Bagyenda revealed GTB’s confidential information without consent of GTB or its customers which violates The Bank of Uganda Act 1993.

Section 40(3) of the Act states that: “The bank shall not publish or disclose any information regarding the affairs of a financial institution or of a customer of a financial institution unless the consent of the institution or the customer has been obtained.”

The session:

COSASE chair Hon. Abdu Kakuntu: Bank of Uganda gave Nile River Company power of attorney, which Company ceased to exist in June 2008.

Hon. Michael: We should put the legal Counsel Bank of Uganda on Oath, since she appears to be providing inconsistent information.

Hon. AKatuntu: Under the Financial Institutions Act, it provides that consent of both the client and the Bank of Uganda to be obtained before information touching on either parties before its shared with third parties.

Hon. Katuntu: Why did you Mrs Bagyenda discuss confidential information of a financial institution with a third party.

Mrs Bagyenda: Confidential documents are purely legal and this discussion was a management institution in inclusion of the Governor and the Board of Governors.

Hon. Francis Mwijukye: Governor of Bank of Uganda cannot claim he is not aware that’s happening in the Bank yet he is the head of the institution. We need an explanation.

Hon. Katuntu: As a committee we should not be seen to be facilitating the contradictions of the witnesses before us, but rather encourage Bank of Uganda to speak with one voice.

Hon. Medard Ssegona: Does Bank of Uganda have a procedure of disposing off the assets of the Defunct Banks.

Mrs Byagenda: The Financial Institutions Act clearly stipulates the procedures of disposing off assets of a defunct bank; however, we don’t have procurement documents.

Hon. Katuntu: The actions of Mrs Bagyenda disclosing information to a third party, is not only irregular but also illegal.

Katuntu: Was Bank of Uganda ever a receiver of Global Trust Bank? Bagyenda: No but we liquidate.

Katuntu to Bagyenda: Do not whisper to people here. The officers can answer the questions on their own. Under whose instructions was the agreement drafted?

BoU counsel: It could have been that we sat in a meeting. I do not have a good recollection on the circumstances under which it happened. Hon. Abdu Katuntu: We shall not sit here as a committee and involve our time in talks that do not have evidence.




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