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kasekende and mutebile
Bank of Uganda governor Mutebile consults with his deputy Kasekende during one of the COSASE meetings. Courtesy photo

Parliament Orders Special Audit Over Shs478bn Crane Bank Liquidity Expenditure

Katuntu noted that the BoU officials only provided schedules and not accountability as required by the committee and subsequently, said that the Auditor General has been tasked to investigate how this money was actually spent.
posted onDecember 20, 2018
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By Max Patrick Ocaido

PARLAIMENT. The parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has directed the Auditor General to carry out a thorough Audit into the Shs478bn liquidation expenditure to the defunct Crane Bank Limited.

This was after BoU officials led by Governor, Emmanuel Tumusiime Mutebile failed to avail accountability of the Shs478bn that the Central Bank reportedly injected in defunct Crane Bank while it was under receivership.

The liquidation cash was reportedly spent between 20th October 2016 and 27th January 2017 when the Central Bank sold Crane Bank to DFCU Bank.

"We requested for accountability of Shs478bn that was injected in Crane Bank because we wanted to find out whether the money was utilized properly and where the money came from but we only received the schedules and figures," COSASE chair Abdu Katuntu said.

Katuntu noted that the BoU officials only provided schedules and not accountability as required by the committee and subsequently, said that the Auditor General has been tasked to investigate how this money was actually spent.

Last week, the committee requested for proper accountability from the then Crane Bank Statutory Manager, Edward Katimbo Mugwanya after telling the legislators that he was never given time to handover.

Katimbo told legislators that he learnt of the bank takeover by DFCU from a colleague who sent him a WhatsApp message while he was in his farm.

The committee noted that the direct interference of BoU into Crane Bank management has costed the country billions of shillings which remains unaccounted for.

"I therefore director the Auditor General to carry out a thorough audit under the National Audit Act on the Shs478bn liquidity cash that was injected in Crane Bank," Katuntu said.

The Office of the Auditor General has up to January to report back to parliament with its findings. 

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