BoU Defends Self in National Bank of Commerce Case

A case in which two former employees of the defunct National Bank of Commerce (NBC) — representing 52 others — sued Bank of Uganda demanding to be paid Shs 1.9Billion, price has been adjourned till November 15.

The former NBC workers demand to be paid the money as the salaries they missed, page special and general damages when the bank was closed by the central bank in 2012.

High Court Judge in Kabale, Justice Moses KazibweKawumi presided over the hearing of the case on Tuesday where Kampala lawyer Semakula Mukiibi represented Bank of Uganda while Paulsen Niwasasira represented the complainants.

The former NBC Branch Manager for Kabale Fred Twinobusingye and another former employee Frank Mutaremwa, who are representing other 52 former employees, filed the case in Kabale High Court on July 12, and July 13 the court registrar Samuel Emokor issued summons against Bank of Uganda to file its defense.

In today’s hearing, BoU’s counsel Mukiibi raised preliminary objections to the suit, saying that the plaintiffs claim is one on infringement of rights under the Employment Act of 2006, for which the jurisdiction is vested in the Labour Office and not High Court.

In response however, Counsel Niwasasira said that High Court has unlimited jurisdiction and asked court to dismiss the preliminary objections with costs.

In September 2012 Bank of Uganda liquidated National Bank of Commerce on grounds that its continued operations were detrimental to the interests of its depositors.

On 10th October 2012   Bank of Uganda issued letters terminating services of all the employees of National Bank of Commerce and in the determination Bank of Uganda under took to pay the accrued salaries of the former employees of National Bank of Commerce.

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