Gov’t has never got any report on the closure of local banks- Min. Kasaija.

Gov’t has never got any report on the closure of local banks- Min. Kasaija.

The finance minister Matia Kasaija has said that the government has never received any report on the closure of local banks because the ministry would have advised in one way or the other but the bank of Uganda individual officials conducted the closure independently.

The minister known for his open talk said, it is clear BoU mishandled Crane Bank, which at the time of its closure was the biggest indigenous bank.

Minister Kasaija revealed this on Friday when he was appearing before COSASE alongside BoU governor Emmanuel Tumusiime Mutebile and his deputy Louis Kasekende, and the board of the central bank.

BoU has been indicted by several reports including the Auditor General’s report as well shareholders of several defunct banks for closing banks without following the letter of the law.

Among the closed bank are; Teefe bank (1993), International Credit Bank (1998), Greenland Bank (1999), Cooperative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and Crane Bank (2016).

The closure of Crane Bank in 2016 triggered interest in the affairs of Bank of Uganda. It has been revealed in several testimonies that officials of BoU acted with reckless abandon while closing banks, and there is room for suspicion there were selfish interests in bank closures.