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Auditor general rejects BOU's Teefe bank inventory report

Bank of Uganda governor Tumusiime-Mutebile

Bank of Uganda governor Tumusiime-Mutebile

The auditor general has rejected an 'inventory report' compiled by Bank of Uganda (BOU) on the closed Teefe Trust bank. 

BOU had submitted to parliament's Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) a document, containing a listing of assets and liabilities before the bank's takeover in 1993. BOU indicated that the contents therein constituted an inventory report. 
But the auditor general John Muwanga said the documents can only be classified as an examination report. He notes that the document lacks terms of references and schedules of assets and liabilities as at February 17, 1993.

The rejected documents were availed after demands by legislators that the central bank avails the report to facilitate investigations into the irregular closure of banks over the years. Bank of Uganda had initially indicated that an inventory report for Teefe bank never existed.

Central bank's executive director in charge of supervision Tumubwine Twinemanzi defended the documents, saying that although it might not be in the format required by the auditor general, it was considered an inventory report basing on documents they managed to put together from their archives. 
"It provides both the background and because it was conducted by Bank of Uganda itself there were no specific terms of reference...However Mr chairman, because we're getting this information from our archives, we shall again apply ourselves to see if there's any other document." Twinemanzi said.  
A 2017 forensic report by the auditor general had indicated that the office was unable to assess the status of the assets and liabilities of Teefe bank in the absence the inventory report, loan schedules, customer deposit schedules and statement of affairs of the bank.

Twinemanzi explained that the central bank has managed to retrieve from its archives a status report as of the date of its initial intervention in Teefe bank, which gives a listing of all asset numbers, their book value and remarks in terms of dates of acquisition. He requested that the central bank be allowed to interact with the auditor general to get a clear understanding of what information he exactly requires from BOU. 
Committee chairperson Abdul Katuntu contested Tumubwine's submission saying that the central bank did not have to go back to the archives to look for documents. He said that if the required documents are not there, it would not be necessary for the bank to take more time searching for it.
"The first explanation you have is the way you conducted, you did not have terms of reference, you just had a background…what the auditor general has done is to raise some queries professionally and the burden therefore shifts to your side to respond professionally," said Katuntu. 
Cosase vice chairperson Anita Among said that the list of assets provided by the central bank just has book values and questioned whether BOU took the time to carry out the valuation of the assets.
"Under normal circumstances, you should have done evaluation of these assets. Yes you needed to do the listing and then the evaluation. I remember yesterday [Thursday] I asked for the evaluation report of these assets, I don’t know if you have them. Two, what you have provided as your inventory doesn’t show the true picture because you have given it at the book value," Among said. 

Ben Sekabira, the director financial markets development coordination, who was at the time of Teefe closure, a banking officer in BOU, requested for more time to gather for more information.
"I participated in this [closure]. Chair, these things happened 25 years ago, many of the people in this room including the governors were not in charge of the bank and were not in the bank. Chair, through the governor, I want to make a request that because the discovery of Teefe documents happened a few days ago, we’re given an opportunity to go back and craft more responses to questions raised by the auditor general. But asking anyone of the people to respond about things which happened 25 years ago they may not give an appropriate answer." said Sekabira. 
Busiro East MP Medard Lubega Seggona said that notwithstanding the different filing formats used by the central bank and the auditor general, it does not take away the responsibility to answer the substance of the query in which the auditor general points out details lacking in the inventory report.
BOU officials are expected to return before the committee on Monday.


-1 #1 juwait kali 2018-11-17 16:04
They deliberately failed this bank and others. Shame on you black coloniser.

How can you keep your race back ward and in poverty? Because of ignorance, hate, tribalism, and selfishness. May you be found in a rat hole like sadam one of these days.
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0 #2 kabayekka 2018-11-18 14:25
Is it proper that when these banks failed in their accounting books, the Auditor General was not directed or ordered to get in there for over 20 years by the main supervising bank of Uganda?
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0 #3 Lakwena 2018-11-19 10:03
Quoting juwait kali:
They deliberately failed this bank and others. Shame on you black coloniser.

How can you keep your race back ward and in poverty? Because of ignorance, hate, tribalism, and selfishness. May you be found in a rat hole like sadam one of these days.

Juwait Kali, remember the regime, alias the appointing authority; Mr. M7/NRA came to power thru raiding every UCB branch wherever they passed. Even Regional Central Bank Currency Centers were not spared.

In other words, Obote warned Ugandans that Mr. M7 is gangster and gangsters raid banks and closing banks is a form smart raid!
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0 #4 juwait kali 2018-11-19 12:21
Remember the 30% also LAKWENA as soon as this coloniser came in.

In other wise Museveni came with mayembe which possessed Ugandans from day one.
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