BoU probe: 4,500 loan accounts duplicated

Queries. Bank of Uganda officials led by Governor Tumusiime-Mutebile while appearing before the Parliament Committee on Commissions, Statutory Authorities and State Enterprises yesterday. PHOTO by Alex Esagala

What you need to know:

  • Possibility. MPs suspect that the duplication could have originated from Crane Bank before it was sold to dfcu.

Kampala. Up to 4,500 loan accounts dfcu Bank inherited from Crane Bank were duplicated, the House Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) has found out.
The Cosase chairperson, Mr Abdu Katuntu, said this means the information in the books or agreements between parties involved in the sale of Crane Bank is inaccurate.
“One of the things we discovered is that a loan account has many people on it, which is duplication of accounts,” Mr Katuntu said yesterday while meeting Bank of Uganda (BoU) officials.
“There could have been a challenge among the persons in Bank of Uganda and dfcu who handled this. It is possible it could have originated from Crane Bank. We cannot precisely say where the fault was,” he said.
“It is also possible there could been collusion between the sellers and the buyers – but we can only confirm that once we have gone through all the documents,” the MP added.
Mr Katuntu said when BoU was Crane Bank’s statutory manager, it should have spotted the duplication.
The central bank officials are scheduled to meet the committee tomorrow on the matter.
In October, Mr Richard Ssekiziyivu Baliruno, an account holder in Greenland Bank – which has since been closed by BoU, wrote to President Museveni, saying BoU had ascribed an account to him that was not his.
“Under Account No 223383-081 by June 2001, Bank of Uganda under the supervision of Benedict Sekabira took me to court that I had received an overdraft of Shs60 million,” Mr Ssekiziyivu wrote.
It is not clear if the President received the letter and if he responded. Meanwhile, Ms Justine Bagyenda, BoU’s former director of supervision, will on Thursday find out if Cosase will release her passport to enable her travel abroad.
Responding to Rubaga North MP Moses Kasibante’s question, Mr Katuntu said Ms Bagyenda will have to operate within Cosase’s schedule.
“[Ms Bagyenda] has to reconcile her programme of travel with the committee’s programme,” Mr Katuntu said.