BOU Probe; MPs to investigate on 478bnshs spent in Crane Bank

By; Francis Lubega

17^th Dec 2018

The parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) Chaired by Abdu Katuntu has directed Bank of Uganda to submit evidence of over 400bn shillings claimed to have been paid to former clients of crane bank after liquidation.

This was after receiving part of the liquidation financial statements of Crane bank on a CD without the said amount money.

It was also discovered that the compiled financial statement never reflected the list of loan securities that were inherited at the sale of Crane bank and some of the loan accounts totaling to over 4000’s were duplicated with each account operated by more than two people, which is illegal.

The committee chairperson Katuntu decided to postpone the committee to Wednesday to allow committee members scrutinize the received financial liquidation statement on Crane Bank by Bou.

Crane Bank is one of the Seven Commercial banks the latest to be closed in 2017.

At the time of closure, BoU claimed that Crane Bank was massively insolvent, with core capital of negative Shs.240billion, as a result of mismanagement and fraud.

However the latest investigations on Global Finance Bank and Crane Bank indicate that the Banks were closed without clear policy guideline.