BOU Pushed to Avail Defunct Teefe Trust Bank Inventory Report

Bank of Uganda Officials led by the Governor, Emmanuel Tumusiime Mutebile and the Deputy Governor, Louis Kasekende have been forcefully ordered to avail the Parliament Committee on Commissions, Statutory Authority and State Enterprise (COSASE) with the inventory reports of the defunct TEEFE Trust Bank.

This was after the officials failed to explain the criteria they used to close the bank without possession of an inventory report of its liabilities and assets.

The Auditor General in his special report to the committee noted that his officers were denied relevant documentations during the audit process.

In response, the deputy governor BOU, Louis Kasekende said that at the time of closure of TEEFE Trust Bank in 1993, the law (of 1969) that was followed never necessitated the filling of an inventory.

“The law was the 1969 law and the nature of documents required at that time to be kept and presented did not need the inventory to be presented. So, we don’t have that inventory as of now,” Kasekende said.

The Committee Chairperson, Abdul Katuntu however interjected noting that despite the law having not provided for an inventory, every institution acting prudently during the taking over a bank would have it.

“Okay, the law didn’t require that, but did it say that if you don’t make an inventory, you can’t move into an institution, take it over without acknowledging what you are taking over?” Katuntu wondered.

He added, “There is no law which says don’t make an inventory but prudent, sound and professional practice would require you to take one.”

Other legislators wondered how Bank of Uganda could have realized that Teefe Trust bank needed to be dissolved without knowing their assets.

The committee chairperson thus ruled to adjourn the meeting to Thursday to allow BOU officials to organize themselves and provide to the committee the list of assets and liabilities that were taken over by BOU at the time of dissolving the bank.

Other documents that are required are the loan schedules and customer deposits reports then.

“At this point, we require you to go back and look at the audit report and provide the relevant documents based on every outstanding query,” Katuntu ruled.

He as well asked BOU to invite all the bodies and individuals that were involved in the process of taking over TEEFE Trust Bank including solicitor auctioneers that implemented the take over.