The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | A section of former shareholders of Greenland Bank have demanded that the Central Bank accounts for the entire period the institution has been under liquidation.
The bank was in 1999 put under liquidation by the Central Bank which could later on 5th December 1998 take over its management and control. Between 5th December 1998 and 31st March 1999, a number of depositors withdrew their deposits culminating into the termination of the operations of Greenland Bank.
Leading shareholders before parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), Ahmed Nsubuga said that there was suspected fraud in the handling of securities for loans and advances and in the disposal of land and buildings belonging to the bank.
Nsubuga demanded for accountability of US Dollars 11,450,000 paid by Greenland Bank to the Privatization Unit to fund the acquisition of 49% share by Ms Westmont in Uganda Commercial Bank.
“What happened to the shares the bank had acquired in UCB on account of Westmont? Where is the money the bank paid for these shares, that is about Shillings 39.7 billion currently? It is known that government annulled the transaction and sold shares of UCB twice to another investor but never refunded to Greenland Bank,” read part of Nsubuga’s statement to the committee.
Nsubuga further asked questions about the residual proceeds from Greenland Bank Tanzania and Zanzibar which were separate, independent companies with different capitalization. He told the committee chaired by Bugweri County MP Abdu Katuntu that these were closed on orders of the Central Bank by a phone call.
The shareholders also note that the methods of disposal of their furniture, motor vehicles are not known and the proceeds not accounted for. Nsubuga stated that the liquidation expenses and procedures were exaggerated and should be audited.
“The liquidator should provide a clear cash flow analysis month by month, year by year, asset by asset, supported liability by liability,” said Nsubuga.
COSASE is currently probing the procedure used to close and sale commercial banks since 1993 by Bank of Uganda (BoU).
The probe was triggered by a 2017 forensic audit report by Auditor General John Muwanga that pointed out irregular operations in the Central Bank and the controversial closure and sale of the commercial banks. The banks include Teefe Trust Bank, International Credit Bank Ltd, Greenland Bank, Uganda Co-operative Bank, National Bank of Commerce, Global Trust Bank and Crane Bank Ltd.
In his report, the Auditor General observed that no asset movement schedule or ledgers indicating assets at closure, assets sold, selling price, a period of sale, assets not sold, performing and nonperforming loans, was provided to support asset movements in the Statement of Affairs of International Credit Bank (ICB), Greenland Bank and Uganda Co-operative Bank.
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