29 September 2003

Uganda: Co-Op Bank Shareholders Raise Concern

Kampala — SHAREHOLDERS of the defunct Co-operative Bank have asked the Government to speed up the liquidation of the bank, which was closed five years ago.

Joseph Mukasa, the Uganda Co-operative Alliance (UCA) chairman said on Friday, "Government hurried to close the bank. The dissolution of the bank has not been done transparently. The creditors were paid but the shareholders are still waiting," Mukasa said.

Speaking at the UCA AGM, he said they had over two million shares at the time of closure.

Mukasa was on Friday (Sept-26) speaking at the 36th Annual General Meeting (AGM) of Uganda Co-operative Alliance held at Hotel Africana in Kampala.

"When a business enterprise is liquidated, there are both assets and liabilities. We have not been informed of what happened to the balance after the creditors were paid," Mukasa said.

He said with the revival of the co-operative movement, there was need for a financial institution that could cater for its members.

" UCA members have found it difficult to access loans from other banks because of the high interest rates. We want the Government to assist us form another co-operative bank or an agricultural bank to cater for our interests," Mukasa said.

Jovino Akaki, the state minister in-charge of Tourism said the Government was yet to decide whether the closed bank would resume operations.

"I do not want to commit myself. But what I know is that there are negotiations between the Government and the parties involved," Akaki said.

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