Justine Bagyenda the former Bank of Uganda (BoU) executive director of supervision has been pinned for running away with vital documents about seven closed banks upon her forced retirement.
This was revealed by Benedict Sekabira, the Director, and Financial Markets Development Coordination at BoU on Monday when pressed hard by Committee Chairperson Abdu Katuntu.
Sekabira also named in the fraudulent sale of banks said he handed some of the documents concerning the sale of banks to Bagyenda who is believed to have gone with the documents upon her retirement.
Bagyenda has since been summoned and is expected to appear before Parliament’s Commissions, Statutory Authorities and State Enterprises (Cosase) to explain her role in the closure and sale of commercial banks.
Bagyenda is expected to appear before the committee alongside other individuals- Apollo Obo and Margaret Matovu on Wednesday.
For beginners, Justine Bagyenda was the main actor in the crane bank saga who seemed to have had a premeditated motive to disable and cripple crane bank while wedging a broader economic war against Dr Sudhir Ruparelia, who was the majority shareholder of the formerly glorious Crane bank Limited.
Bagyenda, who oversaw CBL get donated to DFCU at Ugx 200 billion didn’t bother to ensure that an independent evaluation of CBL assets and liabilities was made.
in a January 25th, 2017 shocking Letter to Juma Kisaame, titled Compliance Accommodations,
Bagyenda exhorted the Exiting DFCU MD to treat the bad book clandestinely!
“The assets acquired and liabilities assumed will be reported separately from the DFCU’s balance sheet for the 31st January 2017 end of month reporting to BoU. The first consolidated balance sheet will be that of 31st march 2017,” Bagyenda’s order reads.
Bagyenda further ordered that any acquired performing loans and advances reflected on Dfcu’s balance sheet at integration will be deemed and treated as new to Dfcu and hence eligible for restructuring for purposes of the financial Institutions (credit classification and provisioning requirement.
She then added that all fully provisioned loans and advances acquired by Dfcu will be ring-fenced and managed separately and would not be part of Dfcu’s loan portfolio for reporting purposes until rehabilitated in conformity with the Financial Institution Act.
This latest revelation is a slap on the face of Justine Bagyenda, his then immediate supervisor,
Louis Kasekende, Dfcu’s embattled MD, Juma Kisaame and a chain of other actors.
Ms Bagyenda was sacked by BoU Governor Emmanuel Tumusiime-Mutebile in February this year after the Crane Bank controversy erupted.
Mutebile though did not give reasons as to why he sacked Ms Bagyenda would somehow later point out that Bagyenda failed to do her supervisory role, leading to the mess in the banking industry.
He would later replace her with Dr. Tumubweine Twinemanzi.