17 August 2017

Uganda: IGG Asked to Investigate Wealth of BOU Official

Photo: The Independent
The Bank of Uganda headquarters

Kampala — A concerned citizen on Wednesday petitioned the office of the Inspector General of Government (IGG) asking for investigations into the wealth of a Bank of Uganda (BOU) official.

Denis Nyombi a lawyer from Denis Nyombi & Co. Advocates said he is seeking the IGG's intervention because he is privy to information that BOU's Director for Supervision Justine Bagyenda under declared her assets and liabilities to the IGG, contrary the Leadership Code Act, 2002.

Nnyombi noted that he has documents linking Bagyenda and other officials in the directorate of supervision at the Bank of Uganda to several properties yet they earn a gross monthly salary of less than Shs32m.

Nnyombi said: "Pursuant to the Whistle Blowers Protection ACT, 2010, any person with information that can be helpful in the fight against corruption and fraud is encouraged to present his case and that's why I petitioned."

Nnyombi wants Bagyenda to be investigated for prosecution over incompetence and possible corruption and fraud in relation to the ongoing saga between BOU and Crane Bank.

Some of the properties in question are alleged to be in Naguru Bukoto and Kungu area in Kira municipality.

According to Nnyombi, a meeting has already been scheduled between him and the IGG over the matter.

Bank of Uganda has been on the spot over the systematic institutional failure that midwifed Crane Bank's collapse with political pundits and economists accusing it for its weakness to spot pervasive perfidy at the formerly Sudhir Ruparelia owned bank.

The Supervision Acts and Regulations as well as the government's 1997 Intervention Policy empower Bank of Uganda to conduct full on-site examination of all commercial banks using a risk-based supervision methodology.

Last month, a citizen sued Bank of Uganda for failing to properly supervise the business of Crane Bank Limited, a fortnight after the central bank dragged businessman Sudhir Ruparellia and Meera Investments Limited to court for alleged fraud.

Derrick Nsereko, a resident of Kampala filed civil suit number 362 of 2017 through his lawyers, Kashillingi, Rugaba and Associates against Bank of Uganda seeking a declaration that it failed to properly supervise the business of Crane Bank Limited (CBL) in accordance with the Financial Institutions Act, and for the years 2013 to 2016 shied away from taking corrective action in respect of CBL's financial affairs hence putting depositors' funds at risk.

The woes of Crane bank started on Thursday October 20, 2016, after Bank of Uganda took over the management of Crane Bank Limited over undercapitalization and later transferred its liabilities (including deposits) to DFCU Bank in exercise of its powers as receiver, under Sec 95(1)(b) of Financial Institutions Act, Bank of Uganda .

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