Why BoU sells banks cheaply

Missing Security’ documents/Collaterals

Through a review of BOU correspondences, the AG learnt that 25 certified titles that were taken as collateral for the secured loans at the time of closure were found missing.

While BOU had incurred Shs.28.3m to enable procurement of replacement of eleven titles, at the time of audit, the titles had not been secured.

Apart from this, a review of legal reports revealed that there were number of legal cases against Global Trust, which may affect the assets taken over by the Purchaser and BOU. It may also increase the liabilities that will eventually be settled by BOU. MMAKS and Bowmans are mainly handling these cases, according to the AG’s report.

“The legal cases may hinder full recovery of assets and increase the liabilities to be settled by BOU,” the AG notes, “hence delaying the winding up process.”