By Andrew Irumba
Bank of Uganda has in the recent past been rocked with several scandals, which rotate around the loss of billions of tax payers money as a result of bogus transactions being conducted by BoU officials.
However, investigators into the several scandals at BoU are zeroing on a senior official in the Central Bank’s operations department, whom they say is one behind all the shaming acts at BoU, both at the headquarters in Kampala and at upcountry branches.
It is said that this official is in direct control of the departments of operations and currency, respectively, which makes him wield a lot of power at BoU.
Investigators reveal that the official’s name (withheld on police request) appeared prominently during investigations into the closure of several commercial banks in Uganda by BoU.
The investigation faulted BoU for failing to follow the laid down guidelines and procedures in closing the banks, with the prominent ones being Crane Bank Limited (2016), Global Trust Bank (2014) and National Bank of Commerce (2012).
It is also said that this same official tried so much to frustrate the audit of BoU by the Auditor General John Muwanga and tried to use legal means to sabotage the probe, only for Speaker of parliament Rebecca Kadaga to insist that Muwanga had to do his work, because BoU is a public entity and therefore not immune to such probe, despite having a bit of independence.
Investigators have since learnt the same errant official and others hid documents related to the dubious sale of Crane Bank Limited and especially those to do with the accountability of Shs478Bn that BoU claimed to have injected as liquidity support in former Crane Bank Limited while under receivership.
However, it was later discovered by Muwanga that Shs290Bn of that money could not be accounted for. Yet later on the same official wanted Muwanga to repeat audit of Shs478Bn.
But Muwanga dashed his request, saying that only parliament could order him to repeat the process which the official wanted to use to hoodwink the Auditor General and clear his name.
It is also claimed that the top official was instrumental in ensuring that Crane Bank Limited’s assets were transferred to DFCU Bank at Shs200 billion, paid in installments, moreover interest free. The official and others, according to insider sources at BoU shared money from this bogus transaction where some analysts have said DFCU Bank acquired assets of its rival Crane Bank Limited free of charge in 2017.
The same person is behind the ill-advised suit which BoU filed against tycoon Sudhir Ruparelia and Meera Investments on behalf of Crane Bank, demanding them to pay Shs397Bn that he allegedly pocketed from Crane Bank.
However, BoU lost the case against Sudhir after Justice David Wangutusi of the High Court Commercial division dismissed it, by ruling that Crane Bank (Under receivership) had no capacity to sue.
Scandals At Upcountry Branches
Sources at BoU reveals that the recent scandals in which officials were arrested for involving in theft have also been linked to this same official. For instance his name features in the issue of Shs90Bn that was printed without the authorization of BoU Governor Emmanuel Tumusiime-Mutebile, is not resolved yet as investigators are yet to release the report.
The man’s name has also been cited in the recent arrest of BoU staff at its Mbale branch, where they were nabbed with sacks of old currency notes which they were trying to smuggle out of the bank such that they could return them into circulation. The practice has been going on for years at other upcountry branches under the watchful eye of the same official. For instance, it is said that other BoU officials at Mbarara Currency Centre are also under investigations in relations to smuggling out old currency notes, with the official said to be heavily involved.
Insiders at BoU say the junior staffs are directed by the top official to carry out the illegal activity that brings back the old notes in circulation. They say staffs involved in this bad activity have since bought land and build mansions, set up real estate businesses within the shortest time and others are filthy rich despite their low salaries at BoU.
Staffs who were asked by a committee appointed by President Yoweri Museveni said that such cliques are responsible for poor operations at BoU and the said senior staffs want this top manager dismissed if the institution is to stabilize and gain public trust again.
As if all the above is not enough, the official is not on good working terms with his junior, who was hired in February, after former executive director for bank supervision Justine Bagyenda was fired by Tumusiime-Mutebile for underperformance. Spies say the official wants to take over some of the roles his junior, something the Junior has refused to accept.
However, it is just a matter of days before this errant official’s fate at BoU is sealed, because the investigation report to be share to parliament, the Criminal Investigations Directorate, Inspector General of Government (IGG) and other relevant authorities for action once it is completed.
