Teefe Trust Bank Was illegally Closed -BOU

Officials of the bank of Uganda have today admitted that Teefe bank was illegally closed. They were appearing before the parliamentary committee of commissions statutory authorities and state enterprises which is probing the controversial trend under which seven commercial banks have been closed

Led by the governor Tumusiime Muyebile, officials of the bank of Uganda today returned to the parliamentary committee to answer queries put against them by the auditor general’s report on closure of seven commercial banks starting way back from Teefe Trust bank which was closed in 1993. They however withdraw responses to the queries before they submitted fresh responses. This time they turned up with an inventory report detailing assets and liabilities of Teefe bank yet on Monday the same people denied possession of the same report.

BoU officials today attributed the closure to the minister of finance claiming he had authority to close commercial banks. They were embarrassed in the committee chaired by Abudu Katuntu when they gave contradictory information to the committee indicating that the bank was closed in February 1993 and later the committee discovered that the bank was closed on 4th November 1993 evidenced by the letter authored by the then Minister of finance Joash Mayanja Nkangi directing closure.

There was also another battle in the committee about the legal regime under which the bank was closed as BoU documents indicated that the bank was closed under the banking act of 1969 but the committee later found out that the it was closed under financial institutions statute which was operational then.

It was then discovered that Teefe trust bank was closed illegally since the minister of finance who directed for its closure had no authority in the financial institutions statute to close a commercial bank.

The director supervision of commercial banks at BoU Tumumbweine Twinemanzi and the legal expert Ms Kasule of the central bank also confirmed that the minister had no legal mandate to order for the closure after members grilling deeply.

The Aru county mp Odongo Otto then put the governor Mutebile to task to reopen Teefe bank since its closure was a nulity and illegal but dared that he will never reopen a closed bank and the law doesn’t allow it

Odongo Otto Aru county mp

A two man sub committee has been set up by the chairperson of COSASE comprising of Medard Segonna the Busiro East Mp and Emanuel Tusiime the Mbarara municipality legislator to investigate confidential documents under the supervision of the vice chairperson of the committee Anita Among.

Katuntu adjourned the sitting to auditors time peruse documents submitted by BoU officials and directed officials to return tomorrow with the original documents of the 23 properties of Teefe bank which were returned to bank of Uganda by auctioneers after the sale of Teefe.

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