Storm kicks off in House over fresh Cosase probe

Kampala- Members of Parliament have opposed what they called a move by the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) to open fresh inquiries into the closure of Commercial Banks by Bank of Uganda (BoU).

Last week, Cosase chaired by Kawempe South MP Mubarak Munyagwa, interfaced with BOU officials led by the deputy Governor, Dr Louis Kasekende, to respond to outstanding Auditor General’s queries but some of the MPs think the Committee is tilting towards re-opening the probe that was concluded during the tenure of Bugweri County MP Abdu Katuntu.

Mr Katuntu, before bowing out as the committee chair, in his February 21 report that was based on the August 2018 findings of the Auditor General, confirmed irregularities in the dissolution of the seven commercial banks. The report exposed mismanagement at the central bank and proposed key reforms while providing wholesale recommendations against BoU officials accused of turning the bank into an enriching avenue.

In the report, Mr Katuntu’s committee recommended that the shareholders of the closed banks be compensated for the losses because BoU officials did not follow the due process.

Key among the findings of the Katuntu committee was the failure by BoU officials to account for Shs478b that the central bank injected in the stabilisation of Crane Bank before eventually selling it off to dfcu Bank in 2017.

During the three months, probe, BoU officials failed to table accountability for Shs478b they claimed to have in October 2016 injected in Crane Bank, formerly owned by businessman Sudhir Ruparelia, under the cover of “liquidity support”.

On Tuesday last week, Cosase under the leadership of Mr Munyagwa, tasked Dr Kasekende to explain why the central bank has been operating for decades without an accounting officer and also sent him back to bring documents showing accountability for the Shs478b injected in crane Bank, which was blown away in less than six months.

Some of the MPs opposed to this process say, Mr Munyagwa’s move is likely to give a chance to BOU officials, who are already culpable by the recommendations of the Katuntu report to fake accountability and “erase their guilt”.

Daily Monitor understands that Mr Munyagwa has already named a select sub-committee to carry out the inquiry. The five-member committee is headed by his vice chairperson, Mr Ibrahim Kasozi of Makindye East Constituency.

Bukomansimbi South MP Deogratius Kiyingi questioned why Cosase would reopen the probe into the mismanagement of the central bank instead of using its mandate to demand implementation of the Katuntu report that was adopted by Parliament.

“It is wrong to investigate the mess in Bank of Uganda again unless it was not concluded. We cannot move in circles. As Parliament, we concluded that matter and we are waiting for a report on the implementation of the recommendations by the Executive,” Mr Kiyingi said.
Nwoya County MP Simon Oyet, said yesterday that it is against the rules of Parliament for Cosase to restart an investigation into matters that were concluded by the House without seeking new terms of reference from the Speaker.

“Cosase should focus their efforts in making sure that the recommendations of the committee are taken up by the responsible authorities in government. So, to carry out fresh investigations, they must seek permission from the Speaker,” he said.

Budadiri West MP Nandala Mafabi said there is need for the current chairperson to write to the Speaker specifying what exactly they want to tackle afresh.

Kitgum Municipality MP Ms Beatrice Anywar, a former member of Cosase that participated in the BOU probe said: “it is up to them. If Parliament allows two reports, the Speaker knows better.”

Also opposed to a fresh probe is Ajuri County MP Hamson Obua, who described such a process, if allowed by the Speaker, as “duplication and wastage” of resources and time.

Mr Munyagwa and his vice chairperson Kasozi were not available for a comment yesterday. Calls to Mr Munyagwa’s known telephone number went unanswered on several attempts. Mr Kasozi’s telephone number was switched off.

Mr Nathan Itungo Twesigye (Kashari North MP), who is a member of the Kasozi-led select sub-committee, refuted claims that Cosase is seeking to open up fresh inquiries into the closure of the banks. He said what they are handling matters that never came up in the Katuntu probe.

Last month, the Inspector General of Government, Ms Justice Irene Mulyagonja, said she had not been instructed to investigate any person implicated by the Cosase report.

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