The commissions statutory and state enterprises committee has concluded queries on the liquidation of Teefe Trust Bank but directed the Bank of Uganda to present the legal instrument used to close down the bank in 1993. Yesterday Bank of Uganda submitted that Teefe Trust Bank had been closed by the then minister of Finance the Joash Mayanja Nkangi but today the legal counsel at the Bank Margret Kasule submitted that they had acquired new information indicating that it was the Governor who closed the Bank in 1993. Her submission was based on a press release issued by the then Governor Charles Kikonyogo

Parliament is currently probing BoU over the closure of 7 banks that include; Teefe Bank International Credit Bank Ltd, The Co-operative Bank, the National Bank of Commerce, Global Trust Bank, Crane Bank Ltd and Greenland Bank which was closed in 1993. The committee rejected her stand insisting that all documents presented to the committee indicate that a directive to close the bank came from the ministry of finance. The committee chairman Abdul Katuntu insisted that an Instrument issued by the Governor and not a mere press release be submitted to the committee.

Nile River Aquistion Company matters:In another development the committee has ordered bank of Uganda to provide all documents pertaining the Nile River Acquisition Company to which Bank of Uganda sold assets and liabilities of International Credit Bank Limited, Greenland Bank and the Co-operative Bank at a 93% discount. According to the Auditor General’s special audit report on defunct banks, the total loan portfolio of the three banks sold to Nile River Acquisition a company whose owners remain questionable stood at 135 billion shillings.This comprised of secured loans of 34.5 billion shillings which had valid, legal or equitable mortgages. The Auditor General questions this transaction and wondered why loans which were supported with legal documentation were sold to at 93% discount.

The committee meets Bank of Uganda officials next Monday and Katuntu has ordered that all documents about this company and the transactions must be presented to the committee before that meeting takes place. The legal department of Bank of Uganda has also failed to satisfactorily explain the fate of property of defunct Banks worthy trillion of shillings that the Bank has still not disposed off as required by the law

The matter came up after it was noted that beyond the 23 titles from Teefe Trust Bank that Bank of Uganda was still holding, there were very many other properties of the other 6 banks closed that have not yet been disposed off as required. The matter was put to the legal counsel of Bank of Uganda Margret Kasule whose response suggesting that she was being ambushed only prompted anger from the committee chairman Abdul Katuntu and the committee members. His follow up response was also found wanting by the committee 

That aside Greenland lawyers demand for audience:Meanwhile Lawyers and family members of the Late Suleiman Kiggundu-who was the owner of Green Land Bank, are seeking audience with the Commissions, Statutory and State Enterprises committee to provide their concerns about how the bank was closed down by Bank of Uganda

The lawyer to the family also Kampala Lord Mayor Erias Lukwago says that they have evidence including secret documents that can help the committee to understand the challenge at hand. The Bank will effective Monday November 19th begin hearinh responses from Bank of Uganda on the liquidation of Internation Credit Bank, The Cooperative Bank and Greenland Bank. 

Ends