Warning: Trying to access array offset on value of type bool in /usr/www/users/urnnet/a/story.php on line 43
Bagyenda Solely Signed Global Trust Bank Sale Agreement :: Uganda Radionetwork
Breaking

Bagyenda Solely Signed Global Trust Bank Sale Agreement

MPs on Thursday learned of a confidential purchase agreement which Bank of Uganda entered into with DFCU Bank on 10th July 2014 before Global Trust Bank was eventually closed on 25th July 2014. This means that the Central Bank never managed Global Trust Bank for a minimum of six months as required by the Financial Institutions Act.
06 Dec 2018 18:07
Governor Emmanuel Mutebile with Justine Bagyenda.

Audio 3

Former Bank of Uganda Executive Director Supervision Justine Bagyenda signed a confidential sale agreement of Global Trust Bank to DFCU.

Bagyenda together with other Bank of Uganda staff led by Governor Emmanuel Tumusiime Mutebile on Thursday appeared before the committee on Commissions, Statutory Authorities and State Enterprises (COSASE) that is investigating the procedure into the closure and sale of seven commercial banks between 1993 and 2016.

Members of the committee learned of a confidential purchase agreement which Bank of Uganda entered into with DFCU Bank on 10th July 2014 before Global Trust Bank was eventually closed on 25th July 2014.

This means that the Central Bank never managed Global Trust Bank for a minimum of six months as required by the Financial Institutions Act.

COSASE Chairperson Abdu Katuntu noted that the confidential purchase agreement disclosing the financial situation of Global Trust Bank to DFCU contrary to the law had been signed by only Bagyenda.

Katuntu together withthe Vice Chairperson Anita Among quizzed Bagyenda on why she had signed the agreement alone and the purpose of disclosure of GTB's financial situation to another Bank.

Bagyenda said that she had consulted with the Governor on the matter but failed to provide written evidence to the effect.

//Cue in: "and is it...

Cue out:....document to that."//.

Mutebile denied having been aware of the decision. The Secretary to the Central Bank Board Susan Kanyemibwa also said the matter had not been discussed by the board.

//Cue in: "I doubt that...

Cue out:...was never discussed."//.

Asked how the potential Global Trust Bank acquirer was zeroed on, Bagyenda said that they looked at the potential of other 25 banks but still failed to avail minutes to the process.

//Cue in: "we looked at...

Cue out:...not have evidence."//.

Global Trust Bank's license was revoked in July 2014 allegedly due to poor performance which, according to the Central Bank, resulted from under-capitalization and corporate governance weaknesses.

BoU says that Global Trust Bank, which had built a network of 23 branches at the time of its closure, had accumulated losses to a tune of 60 billion Shillings. The Bank which was valued at 75 billion Shillings was then handed over to DFCU Bank.

But a forensic audit report by the Auditor General pointed to a number of irregularities and procedural lapses in the transaction. The audit found that there were no guidelines and regulations to guide the identification of the entity that assumed the assets and liabilities of Global Trust Bank.

It's on the basis of the finding that COSASE raised concern over the absence of vital documents relating to the transaction. The required documents include negotiation minutes of the sale, evaluation reports of Global Trust Bank and Bidding documents.

Today, Bagyenda confirmed that there was no procurement process followed and no-bid document.

Support us


Images 1

Keywords