Bagyenda, Kasekende in new probe over Shs2tn loss

Kasekende, Bagyenda and Mutebile in parliament

President Museveni has directed Internal Security Organisation (ISO) and the Inspector General of Government to investigate Bank of Uganda officials over Shs2 trillion loss.

They are; former BoU Deputy Governor Louis Kasekende, former Director for Commercial Banks Supervision Justine Bagyenda, head of legal Margaret Kasule and Benedict Sekabira, BoU Director for Financial Markets Development Coordination.

Last week, David Bahati, the State Minister for Planning at the Finance Ministry revealed that the Central Bank made losses amounting to Shs2 trillion in the past 15 years.

In a response to a Question for Oral Answer posed by MP Kenneth Lubogo (NRM, Bulamogi), Bahati said the Bank of Uganda posted only Shs40 billion in profits in 15 years, which was remitted to the Consolidated Fund Account as required by the Bank of Uganda Act.

Victoria University

The Shs40 billion profits were registered in 2007, and since then, the Central Bank has been making losses.

MP Lubogo sought to know the “profits or losses BoU has made annually for the last 15 years; when was the last time BoU made profits?”

“Bank of Uganda trades in securities; the minister is talking of making losses; can the minister brief the country the circumstances under which the bank made the losses yet it trades in securities,” said MP Richard Othieno (NRM, West Budama North), who was holding forte for MP Lubogo, in a supplementary question.

Minister Bahati, however, said BoU made losses and nothing can be done about it.

“The bank truly trades in securities but it invests in monetary policies that involves in making losses; these are the facts on the ground; we cannot do anything about it because a loss is a loss,” said Bahati.

In 2018, the IGG started an investigation into the wealth of 100 BoU top officials including Kasekende, his boss, Tumusiime Mutebile and Bagyenda among others, but it didn’t go further.

In his declaration of income, assets and liabilities form to the IGG, Kasekende revealed that he made his wealth through savings from research grants, salary, travel allowances, mutually agreed separation allowance from AfDB, pension BoU and AfDB as well as a disturbance allowance by Bank of Uganda.

In the same form, Kasekende, who was last reappointed deputy governor on January 18, 2015, also listed rental income as another source of wealth, citing five properties in upscale Gaba, Lubowa, Ntinda, Naguru and Kololo valued at Shs2.1b, Shs1.4b, Shs0.39b, Shs1.3b and Shs2b.

These, he declared, bring in a monthly fee of USD13,233 (Shs52m).

On top of that, Kasekende has a residential house worth Shs0.5b as well as a farm valued at Shs500m and Greenhill Academy (jointly owned with his wife Edith Kasekende) among other multi-billion assets.


In another petition to the IGG, a whistle blower claimed that Bagyenda has accumulated more than Shs 19 billion within a space of two years.

The money, the whistleblower claimed has been put on bank accounts in various commercial banks that included Diamond Trust Bank and Barclays Bank.

The Banks made public apology to Bagyenda after bank statements purported to be hers, flooded social media.

The former powerful lady the Central Bank was also linked to 17 properties in central and western Uganda worth several billions, according to the petitioner.

Bagyenda was supposed to declare her wealth to the IGG last December but she never did.

The bank’s affairs came to the public when Parliament started probing the dubious closure of seven commercial banks without following the letter of the law, which shook the world.

Among the closed bank are; Teefe bank (1993), International Credit Bank (1998), Greenland Bank (1999), Cooperative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and Crane Bank (2016).

How BoU has been making losses since 2008

2008/2009 BoU Lost ugx2.8 billion

2009/2010 BoU Lost ugx140 billion

2010/2011 BoU Lost ugx98 billion

2011/2012 BoU Lost ugx147 billion

2013/2014 BoU Lost ugx114 billion

2014/2015 BoU Lost ugx118 billion

2015/2016 BoU Lost ugx81.9 billion

2016/2017 BoU Lost ugx452 billion

2017/2018 BoU Lost ugx406 billion

2018/2019 BoU Lost ugx195 billion.



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