GTB Directors seek $35.5M compensation from Bank of Uganda

After all the questions and chaos surrounding BoU officials whom are accused of selling several commercial banks, former shareholders and directors of Global Trust Bank one of the banks which were liquidated in the process have shown their interest to sue Bank of Uganda to compensate them at least $34 million.

During their interface with COSASE, the investigating committee on the closure of seven Banks criticised Central Bank, GTB directors accuses Bank of Uganda officials for selling their property without their accord and unlawfully, illegal closing and selling of their Bank which cost them billions of money.

GTB Directors seek $35.5M compensation from Bank of Uganda
Top officials from the BoU are under investigation for the sale of several banks

The parliamentary Commission, Statutory Authorities and State Enterprise, have been carrying out its probe into the sale of 7 commercial Banks in Uganda since 1993 to 2016 in accordance with the forensic audit report issued by the Auditor general.

The former directors and shareholders claim that BOU closed their Bank without their consent. Led by Olusegun Oyeyemi, former shareholder of the Bank, a Nigerian national and Bayo Folayan former managing director, stated to COSASE that they want a full compensation of $35.5m with interests at the rate of 10% per annum compound from July 25th, 2014.

On top that they also want their land title that Bank Of Uganda obtained at time of closure returned back to them.

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Bayo Folayan told the committee that BOU pressured them to inject new equity capital and strictly Treasury Bills though they could have used part of the equity funds to generate new loan assets with much income.

However, Olusegun Oyeyemi former share holder GTB said that Bank of Uganda made speculative opinion that they could no longer make profits, but Oyeyemi said GTB met all capitalisation schedules from the Central Bank and even continued to inject money into the Bank.

This followed earlier statements by BOU against GTB which at the time of its closure had established 23 branches, claiming that GTB generated a loss amounting to 60bn shillings and transferred it to DFCU at a cost of 75bn shillings.

BOU officials also stated that, the time they closed GTB it was no longer making profits.

But according to the forensic audit report by the Auditor General, reveals that there were no guidelines and regulations to guide the identification of the entity that assumed the assets and liabilities of Global Trust Bank at the time of its closure.

Later on, legislator Odonga Otto tabled documents of 72 properties owned by Luis Kasekende, deputy governor Bank of Uganda. However, in the process Otto was closed by MP Medard Ssegoona and prompted confusion in the meeting.

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“I want to lay 72 properties, 72 properties belonging to the individual governor BOU”, Otto speaking.

“But I seek your procedural guidance whether this is the right time to lay them”, Ssegoona.

“If this committee cannot allow Ugandans to know what is going on, then we may ask you to disqualify yourself from that chair. This statement the public has to know”, Otto observed.

This forced Abdul Kantuntu, the COSASE chairperson to hang up the meeting and underwent a closed door meeting of about 30min.

“I am going to suspend this meeting for 30min and we have our internal meeting”, Kantuntu stated.

GTB Directors seek $35.5M compensation from Bank of Uganda
Bagyenda and Kasekende are believed to taken several bribes

From the meeting Otto was then allowed to table his documents.

“And we have agreed as follows; Hon. Odonga Otto’s documents are going to be laid without going into details”, Kantuntu speaking to BOU officials and journalists.

In his presentation Otto revealed that Luis Kasekende owns 72 land tittles and 17 of them bears his personal name.

“There are 18 others which I still want to produce and then 35 others, 18+35 the individual governor transferred to his driver one Mosses Musitwa and then the other 35 we have copies of the search warrant. All the document showing that it was transferred to family members”, Otto stating.

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In addition, Otto further tabled more documents indicating that more than 1bn shilling were transferred from the account of Mmax, an external law firm hired in the sale of the closed Bank to Edith Kasekende’s accounts, the wife of Kasekende.

“The transfer of $1.6m by China railways company to the accounts of Mrs. Edith Kasekende and then last but not the least is the transfer of money from the law firm Mmax & CO. advocates to also the accounts of Edith Kasekende to a tune of 1.9bn shillings”, Otto noted.

Likewise, Elijah Okupa Kasiro MP tabled more documents on the same case indicating 11 properties belonging to Justine Bagyenda.

This propelled Okupa to task the committee to sermon the Financial Intelligence Authority to offer an explanation over the case.

“That the 11 properties are on a land at Museveni’s road Ntugamo plot number 21”, Okupa explained.

We shall keep you posted here at Flash Uganda media

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