Normal operations to continue at Post Bank despite investigations – BoU

Sunday April 14 2019

Post Bank Uganda Limited head office. Courtesy

Post Bank Uganda Limited head office. Courtesy photo 


Bank of Uganda has assured the customers of the Post Bank Uganda Limited that the ongoing investigations by the statehouse anticorruption unit will not affect the daily operations of the bank.

Officials from the statehouse anticorruption unit pitched camp at the Post Bank Uganda on Friday last week to investigate abuse of office after a whistle blower petitioned the unit, accusing some senior officials.
Dr Louis Kasekende, the Deputy Governor of Bank of Uganda in a press release on Friday said the bank is aware of what is happening at the Post Bank and that the central bank is closely working with the different actors to ensure continuity of daily operations.

“Following a petition to the anti-corruption unit of statehouse by the whistle blower, there is an ongoing investigation into Post Bank Uganda limited by the office of the auditor general and the directorate of criminal investigations department. The Bank of Uganda (BoU) is aware of the issues under investigation and is working very closely with the aforementioned investigative teams and the Ministry of Finance Planning and Economic Development to ensure that the services and operations of Post Bank Uganda Limited are not interrupted,” Dr Kasekende said in the statement.

He assured the public that there is no need for panic as operations in all the bank branches across the country will continue normally without any interruptions.
“The Bank of Uganda assures the Post Bank customers and the general public that Post Bank Uganda limited is strong, safe and sound and its services will continue uninterrupted in all the branches. The Bank of Uganda will update the public about any further developments through its normal communications channels including the BoU website.”

The investigations

A whistle blower petitioned the office of the statehouse anticorruption unit, accusing some senior officials of the bank of abuse of office and corruption.
The investigations, according to a statement from the unit was carried out under Article 99 (4) of the Constitution of Uganda, in liaison with the Criminal Investigation Directorate acting under Article 120 (3) (a) and the Office of the Auditor General acting under Article 163 (3).

“The matter under investigation is for abuse of office and a number of senior bank personnel are under investigation,” the statement, signed by Lt. Col Edith Nakalema, the head of the unit, said.
“This investigation is being carried out in consultation with Bank of Uganda and Ministry of Finance, Planning and Economic Development.”

Past events
In the run up to closer of several banks in the past, Bank of Uganda and the affected banks would issue similar statements assuring the customers that all is normal and few days later, official announcements would emerge that operations at the affected banks are suspended.

The latest being the former Crane Bank where Bank of Uganda officials issue similar statements and shortly after that the bank closed businesses across the country.
The bank‘s majority shareholder, Sudir Ruparelia is battling the central bank and DFCU in attempts to regain control of their bank.