Parliament Orders Audit into BOU's Shs 478bn Liquidity Support to Crane Bank

Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has directed the Auditor General to carry out a thorough audit into the Shs 478bn of liquidity support to the defunct Crane Bank Limited by Bank of Uganda.

The decision was taken by the committee chairperson and Bugweri County MP, Abdul Katuntu after officials of Bak of Uganda (B.O.U) led by the Governor, Emmanuel Tumusiime Mutebile failed to avail accountability of the said funds which were injected in Crane Bank Limited at the time it under Statutory Management of BOU.

Finance Pledges Continued Support to Uganda’s Missions at ECD Mid-Term Review in Mombasa

Uganda Injects UGX 3.8 Trillion Into Parish Development Model, Enters Sustainability & Acceleration Phase

Uganda-Kenya Coast Partnership Wins Global Tourism Resilience Award

Last week, the committee requested for proper accountability from the then Crane Bank Statutory Manager, Edward Katimbo Mugwanya after telling the legislators that he was never given time to handover.

Katimbo told legislators that he learnt of the bank takeover by DFCU from a colleague who sent him a WhatsApp message as he was on his farm over the weekend.

On Thursday, Katuntu informed members that on perusal of the documents that were sent to the committee, it was discovered that the documents were not satisfactory since they only provided schedules and not accountability as required.

“We requested for accountability of Shs 478bn that was injected in Crane Bank because we wanted to find out whether the money was utilized properly and where the money came from but we only received the schedules and figures,” Katuntu said.

Katuntu highlighted that the intervention of Bank of Uganda into Crane Bank management has remained so costly for the country since it is not yet clear whether the money served the purpose for which it was requisitioned.

“I therefore direct the Auditor General to carry out a thorough audit under the National Audit Act on the Shs 478bn liquidity that was injected in Crane Bank,” Katuntu ordered.

Katuntu asked the Auditor General’s office to establish whether it was necessary to inject in the money in Crane Bank Limited and report back to Parliament not later than 14 days from today.