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Global Trust Bank protests closure

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A motorist rides past Global Trust Bank in Kampala. It had 21 branches across the country by the time of its closure by Bank of Uganda. PHOTO BY ABUBAKER LUBOWA 

By ISMAIL MUSA LADU

Posted  Wednesday, August 6  2014 at  01:00

In Summary

Bank’s view. The embattled bank says its closure is unfortunate and wants clarification from the regulator.

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Kampala.

Global Trust Bank shareholders are protesting the Central Bank’s move to close the bank, referring to the regulator’s action as an unfortunate incident.
The public notice issued by the bank’s shareholders, just days after the Bank of Uganda (BoU) closed it says: “The bank (Global Trust Bank) is highly liquid, with Treasury bill holdings of Shss43 billion and inter-bank placements of Shs5 billion.”
And for that “unfortunate development”, according to the embattled bank, the shareholders and concerned citizens are seeking clarifications and explanations emanating from the regulator’s action.
Despite taking note of the notices that the defunct commercial bank has since issued regarding its state of affairs, the regulator remains steadfast, saying they have no response to make beyond what they have already said and done.
“I will refer you to our statement that was made by the Central Bank Governor last week. And nothing more than that can I add,” the acting director communication BoU, Mr Edward Tenywa, said yesterday in an interview.
Last week, Bank of Uganda exercised its powers as a liquidator to withdraw the licence of Global Trust Bank Uganda on the grounds that the bank is no longer a profitable venture.
The Central Bank governor Emmanuel Tumusiime Mutebile in a news conference last week said Global Trust Bank has failed to become commercially viable after accumulating losses of up to Shs60 billion.
He said: “There were serious deficiencies in the governance of Global Trust Bank and accuracy of the information provided to government,” Mutebile said.
He continued: “The closure was necessary to protect the interests of its depositors.”
The Uganda Banker’s Association is yet to discuss the matter with the regulator in their monthly meeting weeks away.
The executive director of Uganda Banker’s Association, Mr Emmanuel Kikoni, said yesterday the banking fraternity will take up the matter with the regulator while bearing in mind the counter claims that the defunct bank has been issuing in the press.
He said: “Until then (during the association’s monthly meeting), I cannot comment further on the fate of the bank (Global Trust Bank).”

fate of global trust customers

Mr Juma Kisaame, the managing director of Dfcu bank, told the Daily Monitor yesterday that they have been asked by BoU to attend to the Global Trust Bank customers, and that it will be up to the clients to relocate to Dfcu if they wish.
He also refuted claims that they now own the defunct bank, saying the services they are rendering are on the request of the regulator.
Mr Muhammed Ssempijja, a country leader for Ernst&Young, said: “The depositor must be protected at all costs. And if that decision was arrived at to protect the customers, the regulator should be appreciated.”

numbers

21
The number of branches that Global Trust Bank had across the country by the time of its closure.

Shs5b
Amount of money the bank has in inter-bank placements.

Shs43b
Amount of money the bank has in Treasury bill holdings.

iladu@ug.nationmedia.com