The Independent (Kampala)

22 May 2012

Uganda: BOU Clarifies On National Bank of Commerce

Bank of Uganda has dismissed as untrue reports that the National Bank of Commerce (NBC) has been shutdown and no longer operates.

This clarification comes just after a local news paper published a story on May 21 titled; "Shut Down! Mbabazi, Rugunda lose billions as BoU shuts their bank," in which it was reported that the National Bank of Commerce (NBC) had been closed by Bank of Uganda.

"Bank of Uganda has not closed National Bank of Commerce (NBC) as reported in the article," a statement released by Bank of Uganda on May 21 reads.

"The correct position is that Bank of Uganda, in exercise of its powers under Section 82 of the Financial Institutions Act, 2004, appointed an Advisor on March 22, 2012 to advise the National Bank of Commerce (NBC) on its affairs," it adds.

The bank says that the move was intended to protect NBC depositors whose shareholders are in the process of resolving an ownership dispute.

"The general public is hereby informed that NBC is operating normally under the arrangement and continues to provide normal banking services," the statement said.

Recently, a section of the bank's shareholders questioned how Mbabazi, Nzei and Rugunda acquired majority shares in the bank and where they got the powers to register a public bank as a private bank with only two signatories. The trio is reported to have hijacked the bank and secretly registered it as a private bank limited by guarantee - changing its name to National Bank of Commerce (U) Ltd.

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