Parliament’s Committee of Commissions Statutory Authorities and State Enterprises (COSASE) were today left in shock after Bank of Uganda officials informed that they used United Kingdom laws in the sale of defunct banks.
They claim the buyer of the loans which has since turned to be a fake company refused to have the agreement implemented in Ugandan laws.
This was after MP Medard Lubega Segoona asked the Central Bank officials why they ousted laws of Uganda including the constitution and chose to rely on UK laws in an agreement they signed with Nile River Acquisition.
Nile River Acquisition had agreed that to buy off the loans of International Credit Bank, Greenland Bank and Cooperative Bank at USD5.2M.
Margaret Kaggwa, Legal Counsel of Bank of Uganda told the Committee that it was Nile River Acquisition that asked to have the agreement executed based on UK laws, but these were only to apply in case of any disputes but not on debt collections.
However, the MPs weren’t swayed by her explanation with COSASE Chairperson, Abdu Katuntu remarking: “You had actually ousted the applicability of using the Uganda constitution. Why did you choose the law under which law the agreement should be interpreted? We want you to explain the basis under which you took that decision.”
Francis Takirwa UPDF representative also asked: “Was Bank of Uganda so desperate that they couldn’t wait for another arrangement rather than take of this company that had to bring its laws?”