National

Amos Nzeyi defends change of Kigezi bank

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By  EPHRAIM KASOZI

Posted  Tuesday, April 15   2014 at  18:36

In Summary

Mr Nzeyi was jointly sued with Prime Minister Amama Mbabazi and Health Minister Dr Ruhakana Rugunda, all former directors of NBC.

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KAMPALA-Businessman Amos Nzeyi was yesterday questioned for over three hours in connection with the alleged fraud involving the changing of Kigezi Bank of Commerce, into National Bank of Commerce without authority.

Mr Nzeyi, one of the founders of the defunct National Bank of Commerce told court the transfer was approved by the general assembly, contrary to the allegations of fraud.

“We did not alter any document and everything that was done to transform the bank to a national level was agreed upon in meetings where Prof George Kanyeihamba was present,” Mr Nzeyi testified.

He appeared before the Commercial Division of the High Court presided over by Justice David Wangutsi.

Mr Nzeyi was jointly sued with Prime Minister Amama Mbabazi and Health Minister Dr Ruhakana Rugunda, all former directors of NBC.

In the same case, Prof Kanyeihamba, a co-founder of the bank also accuses the Attorney General of allowing the Registrar of Companies to illegally change the bank’s name without thorough consultation with some directors and founder members.

However, in September 2012, Bank of Uganda closed operations of National Bank of Commerce and transferred part of its assets to Crane Bank.

It is alleged that the trio (Mbabazi, Nzeyi and Rugunda) acted without authority from other directors and unlawfully changed the bank name.

Through his lawyers, Prof Kanyeihamba alleges that NBC was not properly incorporated under the law to which he wants it to be cancelled and reinstated to its former name, Kigezi Bank of Commerce.

ekasozi@ug.nationmedia.com