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FORGET REOPENING: Mutebile Speaks on Closed Banks

The Bank of Uganda Governor, Emmanuel Mutebile has strongly pronounced that none of the closed seven Banks would ever be reopened.

The no-nonsense Central Bank chief made the revelation on Thursday afternoon while appearing before the Parliament’s committee on Commissions, Statutory Authorities and State Enterprises (COSASE).

The committee chaired by Bugweri county Member of Parliament, Abdu Katuntu is probing the audit queries raised by the Auditor General on the closure of commercia banks since 1993.

The last 3 consecutive interfaces between MPs on the committee and Central Bank officials focused on the closure of first bank, Teffe Trust.

Apparently, there are two separate and contradicting policy instruments being quoted for the closure of Teffe Trust.

The Committee found out that both Bank of Uganda Act 1969 and the Financial Institutions Statute have been referred to in the closing of the bank in February 1993 and November 1993 respectively.

MPs including for Aruu county, Samuel Odonga Otto argued that the then Finance Minister, Mayanja Nkangi didn’t have the mandate to invoke Financial Institutions Statute to close bank. 

Otto asked if the decision is going to be revised and Teffe Trust bank get reopened.

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“What plans do you have to reopen Teffe. It’s now 27 years and we are crying foul, playing ping pong, how can the shareholders be mobilized since the mistake wasn’t theirs?” asked Otto.

Mutebile explicitly and boldly said that he has never dreamed of reopening any bank and it will never happen.

“I have never dreamed of reopening a closed bank and it is not about to happen,” said Mutebile.

Several banks have been closed since the early 1990s over insolvency.

They include Crane Bank which was sold to Dfcu.

Bank of Uganda accused Crane Bank owner Sudhir Ruparelia of orchestrating unprecedented fraudulent dealings at the financial institution hence wiping out its capital.

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