Key players in BoU probe
What you need to know:
Report. The Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) on Thursday presented before the House its report on the closure of seven commercial banks. Following the closure of the highly hyped probe and ahead of a parliamentary debate on the report next week, Stephen Kafeero takes a look at the main players in the banks saga.
Amama Mbabazi
The National Bank of Commerce was closed two years before former Prime Minister, Amama Mbabazi, who was also a shareholder in the bank was sacked. The assumption is that the very powerful premier could have been in the know on why the bank was closed yet when he appeared before the Cosase committee he was, like the rest of his highly placed colleague shareholders, seeking answers.
Other shareholders were Dr Ruhakana Rugunda, BoU Governor Emmanuel Tumusiime Mutebile, Businessman Amos Nzeyi, former ministers Mathew Rukikaire, Jim Katugugu Muhwezi, Dr Ezra Suruma, and retired Supreme Court Justice George Wilson Kanyeihamba.
Mbabazi and other shareholders demanded Shs295 billion as compensation for what they said was an illegal closure of their bank.
Justine Bagyenda
Long before she appeared before the Cosase committee, Justine Bagyenda the former Executive Director of Banking Supervision (EDS) was in the public court of opinion, tried and largely convicted.
Her controversial departure from BoU made headlines. The questions of the closure of banks rotated around her former office and she had on several occasions survived being detained by angry legislators. She had to defend herself against allegations of stealing BoU documents and operating as a larger than life character in BoU including usurping the powers of the legal department. She faced the wrath of the committee together with Ms Juliet Adikot (bodyguard) and Mr Job Turyahabwe (driver).
Abdu Katuntu
Besides chairing the committee, Katuntu has had to fight other political battles and sideshows. He was sacked from leading the committee last year but only handed over to his successor shortly after presenting the report to the House. It took the intervention of Speaker Rebecca Kadaga for Mr Katuntu and his team to be allowed time to complete the investigations and submit the report. He was among other things dodged with questions on many prior investigations but with unwritten reports and an agreement on handing over he had reached with his colleagues in the Opposition but reportedly breached. During the probe, Katuntu was tough and resolute amid accusations of bias depending on who was at the receiving end of his questions.
Sudhir Ruparelia
The Cosase investigation on the closure and sale of commercial banks between 1993 and 2016 is largely attributed to the fallout following the closure of Crane Bank and its sale to dfcu with Sudhir’s fight for what he considers an injustice largely attributed to have fuelled the probe and the unprecedented media and public attention it has garnered.
Mr Ruparelia, his son Rajiv, former officials of Crane Bank and their lawyers made their case before Cosase describing the sale of Crane bank to dfcu as fraudulent.
Shareholders of the defunct Crane Bank Limited demanded to be compensated with more than Shs570 billion by Bank of Uganda for the losses they have suffered since their bank was closed in October 2016. Ruparelia also wants BoU to return $23.5 million the Crane Bank shareholders deposited with Bank of Uganda over what they say is a failure to advance the purpose for the money.
During the probe it also emerged that Mr Ruparelia’s Crane Bank was forced to acquire National Bank of Commerce (NBC) by BoU through a phone call made to his manager.
Louis Kasekende
Bank of Uganda Deputy Governor, Mr Louis Kasekende, like many of his colleagues had to fight in and out of the Cosase committee. In the committee room, he had to defend his role and that of BoU in the sale of the banks in question. Outside, he had to defend his reputation and wealth with bank accounts and other transactions said to belong to him and members of his family leaked to the media. He, for example, faced off with Aruu MP Odonga Otto tabled who had tabled 75 land titles before the committee as part of accusations that he is a man tainted with corruption. In a letter to Speaker Kadaga, he denied the accusations.
Matia Kasaija
Finance minister Matia Kasaija is usually very frank for a politician. When he appeared before the Cosase committee, he blamed the collapse of seven commercial banks on Bank of Uganda officials.
He condemned the manner in which the BoU Governor Tumusiime-Mutebile and his team handled the closure of banks. In another revelation, he told the committee that he had telephoned Mr Ruparelia and suggested to him measures that would lead to the recapitalisation of the bank but the businessman was not very receptive to the minister’s ideas.
Timothy Kanyerezi Masembe
He has been the face of questions raised on the role of external lawyers in the closure of banks, specifically Crane Bank Limited. Like other officials involved in the closure of Crane Bank, Mr Masembe of MMAKS Advocates also faced a protracted campaign on online news websites and social media. Masembe and his partners at MMAKS Advocates were quizzed on allegations of conflict of interest. They denied the allegations.
Kakembo Katende
Lawyer Kakembo Katende of M/s JN Kirkland and Associates is of the people likely to curse the Cosase committee. During the investigations, it was discovered that the Central Bank tasked Mr Kakembo to get a company that can buy loans for the defunct banks.
Nile River Acquisition Company was then contracted to collect loan debts from the customers of the defunct banks.
Nile River Acquisition would also contract SIL Investments to carry out the mandate and they have been collecting money from the different debtors since 2008.As part of the recommendations of the committee, the Inspector General of Police was directed to seize all the land titles in the possession of Mr Kakembo arising from their management of tire loan portfolio sold to M/s NRAC by Bank of Uganda and the Uganda Revenue Authority should take interest in the tax activities of Kirkland’s agents, among other things.
Governor Tumusiime Mutebile
The Cosase probe and its revelations will mask the imminent exist of Prof Tumusiime-Mutebile from the Central Bank. The discoveries have brought to question his role and control over the affairs at BoU in the close to two decades he has presided over as governor. While he attended most of the proceedings and answered questions when required to, the ailing economist and banker appeared to be out of sync with much of what had appeared under his watch.
Benedict Sekabira
Like Ms Bagyenda, Mr Sekabira had a hard time at the Cosase committee with many questions asked about his role in the closure of the defunct commercial banks. Some of the questions touched conflict of interest and if the recommendations of the legislators are adopted by the House, Mr Sekabira, currently director of Financial Markets Development at BoU, is to be held liable for conflict of interest.
