By Max Patrick Ocaido
The Parliamentary committee on Commissions, Statutory Authorities and State Enterprise (COSASE) has thrown out Dfcu Bank bosses for presenting unauthentic documents regarding the purchase of defunct Crane Bank.
Dfcu officials led by board chairman Jimmy Mugerwa were appearing before COSASE as witnesses in the closure and purchase of Crane Bank in the ongoing Bank of Uganda probe.
During the meeting, Dfcu's Mugerwa made a defense presentation in regards to the purchase agreement of Crane bank agreement, however the presentation was accompanied by attachments in the appendix most of which MPs questioned its authenticity considering that there were neither dated nor signed by the bank authority.
This prompted MPs sitting on the committee to continuously raise procedural questions forcing outgoing COSASE chairperson Abdu Katuntu to kick them out to allow them reorganize their documents.
“Don't attach documents which can't be identified. If you want us to look at documents then don't edit it, bring them all for us to establish its authenticity. Most of our documents in the appendix are not signed and no one talks responsibility. Get those documents in full if you want them to support your statements,” Katuntu said.
It is at this juncture that Aruu County MP Odonga Otto moved a motion to throw out Dfcu bosses for their confusion.
"It is prudent for this committee to throw out dfcu team because they are so confused and disorganized, they are fidgeting with their own documents. It is in the best interest that dfcu withdraws and reorganizes themselves. In the report, they are valuing Crane bank assets but without a specific report from that government valuer on how they came into those figures," Odonga Otto (Aruu South MP) said.
“For instance, without the assistance of government valuer, how did they (Dfcu) arrive at the figures that Mbarara branch is worth Shs400bn?” Otto wondered.
MPs unanimously agreed that dfcu officials withdraw their documents and come back the following day with properly signed and presentable documents. Katutu threw them out and adjourned the meeting to Thursday.
Dfcu’s Mugwerwa apologized to the Committee saying that they were not aware that the committee actually needed the documents in full.
“Now that we are aware of what you want, any document that is incomplete will now be sorted,” he said.
Dfcu reportedly paid Bank of Uganda shs200bn to take over Crane Bank in a manner which he has been questioned because there was no proper inventory conducted by the Central Bank but rather relied on the Dfcu’s inventory and later sold it to the same people.
In the report, the Auditor General established it was unclear how Shs200bn was arrived at as consideration especially since no valuation was done. The Shs200bn would be paid in 39 months more over an interest free payment.
