Log in
Free: The Observer Mobile App - Exclusive Content and Services

How Bagyenda solely sold off GTB to Dfcu

Justine Bagyenda

Justine Bagyenda

Former Bank of Uganda executive director supervision Justine Bagyenda has admitted that she solely signed off the confidential sale agreement of Global Trust bank to Dfcu bank. 

Bagyenda together with other Bank of Uganda (BoU) staff led by governor Emmanuel Tumusiime-Mutebile on Thursday appeared before the parliamentary committee on Commissions, Statutory Authorities and State Enterprises (Cosase) that is investigating the procedure into the closure and sale of seven commercial banks between 1993 and 2016.

Members of the committee learned of a confidential purchase agreement in which BoU entered into with Dfcu on July 10, 2014 before Global Trust bank was eventually closed on July 24, 2014.

This means that the central bank never managed Global Trust bank for a minimum of six months as required by the Financial Institutions Act. Cosase chairperson Abdu Katuntu noted that the confidential purchase agreement disclosing the financial situation of Global Trust bank to Dfcu contrary to the law had been signed by only Bagyenda.

Katuntu together with the vice chairperson Anita Among quizzed Bagyenda on why she had signed the agreement alone and the purpose of disclosure of GTB's financial situation to another bank competitor, Dfcu. Bagyenda said that she had consulted with the governor on the matter but failed to provide written evidence to the effect.

"Is it also true Mrs Bagyenda that you’re the only officer in Bank of Uganda who signed and witnessed the signing of this document?" asked Katuntu. 

"Yes [but] after consulting the offices that were relevant to the drawing of the MDA.” she said. 

Mutebile denied having been aware of the decision. The secretary to the central bank board, Susan Kanyemibwa also said the matter had not been discussed by the board.

"I doubt that that’s the case but I want to know from board affairs if this matter was discussed in the board meeting because that would be where that authority could have been obtained." said Mutebile. 

"Thank you very much chair and through you governor, I have with me the minutes of the board for the period January 2014 to December 2014 and this particular issue of the agreement that is being referred to was never discussed." Kanyemibwa said. 

Asked how the potential Global Trust bank acquirer was zeroed on, Bagyenda said that they looked at the potential of other 25 banks but still failed to avail minutes to the process.

Global Trust bank's license was revoked in July 2014 allegedly due to poor performance which, according to the central bank, resulted from under-capitalization and corporate governance weaknesses.

BoU says that Global Trust bank, which had built a network of 23 branches at the time of its closure, had accumulated losses to a tune of Shs 60 billion. The bank which was valued at Shs 75 billion was then handed over to Dfcu.

A forensic audit report by the auditor general pointed to a number of irregularities and procedural lapses in the transaction. The audit found that there were no guidelines and regulations to guide the identification of the entity that assumed the assets and liabilities of Global Trust bank.

It's on the basis of the finding that Cosase raised concern over the absence of vital documents relating to the transaction. The required documents include negotiation minutes of the sale, evaluation reports of Global Trust bank and bidding documents. Bagyenda confirmed that there was no procurement process followed and no existing bid document.

Comments   

0 #51 Treva 2018-12-11 20:43
Miki - I have educated you enough. Nobody reading your confused, pseudo intellectual babble and comparing it to my extremely coherent macro and micro understanding of the complex interplay within society would to foolish enough to pay you any further attention.

I respond to your stupidity because I have a duty to confront those who spread deadly misinformation.

You are so stupid that you suggest I do not know the difference between protocol and procedure. Idiot.

It is you who is an illiterate in constitional matters, so much so that you have entirely no idea that protocol and procedure are part of conventionality, a concept will die never understanding.

You feed off my thinking and then attempt to portray yourself as knowing what I tell you better than me, you idiot. Typical fraud. You know nothing about parliament, law, or banking. That is obvious by the way you stab around in te a dark hoping someone will listen. You sad, ignorant, idiot.
Quote | Report to administrator
0 #52 Miki 2018-12-11 21:12
Ms Bagyenda did everything by rote and memory, and with a mere phone call! Now she says the rote and memory have long deserted her!

Probably gone down Mafia alley. She has no recollection of what she did, and therefore no official record exists or should ever be expected of a function she supposedly performed on the public's behalf and affecting the well being of so many people!

That is Treva's genius. That is how transactions of that nature should happen in Treva trivia land. It tempts one to think that probably Treva and Ms Bagyenda are one and the same person.
Quote | Report to administrator
0 #53 Treva 2018-12-11 21:16
Wooden K- You are unable to articulate anything meaningful. You make up your facts and details as you go along. You and that idiot Juma are the same!

I had already agreed, at the start of all this, page 1, that parliament has an oversight role over the manner in which banks were closed.

You have ignored that, and are trying to make it seem as if I am at odds with that basic function. That is how you invent your own reality, like a mad person.

My complaint is that the inquiry expanded itself into other matters over which it had no jurisdiction.

Now they are asking if the deal was concluded on the phone or not. How stupid can people be? Is parliament going to supervise how BOU conducts business?

What difference does it make if it is done on the phone or not? What is a phone for, to gossip? It is a business tool.

Is Katuntu, a failed lawyer, going to educate us on how BOU should conduct business? God help us!
Quote | Report to administrator
0 #54 Treva 2018-12-11 21:43
Miki- Probity is a function of a state of mind. It is not a constitutional concept.

Probity comes from the verb, 'to probe', meaning to investigate, enquire, seek, touch upon, etc. It is therefore natural, that any inquiry includes an element of probity, if it is to uncover truths.

As you know, idiot, an inquiry is sometimes referred to as ' a probe'.

But then you say I do not know the 'difference between probity, accountability, and oversight.

Probity is the state of mind necessary for those tasked with providing oversight to establish accountability. I hope that clears up any fantasy that you will one day understand any of these things better than I know them.

Miki - You have gone quiet on the details. You are like Juma. Juma picks details from one of seven bank closures, and threads them into a single story. He thinks Global Trust is 'public property'. He thinks, like you do, that Bagyenda 'sold a bank'. Idiots!
Quote | Report to administrator
0 #55 Miki 2018-12-11 23:37
Treva, ha! The infantile tantrums and juvenile name calling.

No need to argue details with you as long as you are still confused and conflating the issues.

We can go back to talking about the details after your down for a civics lesson with the Primary three kid as recommended earlier. Otherwise it is useless and space-consuming responding to every one of your out-bursts.
Quote | Report to administrator
0 #56 Wooden K. 2018-12-11 23:40
Hello Treva !

I was about to say hahaha , them Mama reminded me that it is important to show good manners , especially to those who do not deserve it.

Mama says like this : it is silly to insult someone whose sense of selfworth is already depressed.

Hello , if you respond to every meaningless and not articulate junk that I deposit , the fault cannot be mine.
Quote | Report to administrator
0 #57 Wooden K. 2018-12-12 00:07
Thank God , all is not lost !

I see that it has taken 53 posts for you to eventually get what everyone has been trying hard to drill into your TRIVIAL brain.

In order to avoid being accused of making up my facts, I will quote you:
"parliament has an oversight role over the manner ( ephasis: manner) in which banks were closed"

Don`t , therefore , ever repeat that what parliament is doing is "illegal".

Also , do not say : "my complaint is that the inquiry expanded itself in matters over which it has no juridiction"

Why ?

Because in comment #54, you say this :
"In iquiry is a probe... " it is therefore natural that an iquiry includes an element of probity, if it is to uncover the truth".
This, Treva , answers and explains your querry in #53.
.
Quote | Report to administrator
0 #58 Miki 2018-12-12 08:40
Treva, are you chest-thumping for your 'extreme' coherence and understanding of issues both macro and micro and how they relate to society?

Sorry for paraphrasing here. But I take it that you are proud to be consistently reasoning in a straight line. It is possible to be walking or for this matter reasoning in a straight line but wandering off in the wrong direction. And that seems to be the case with your half informed, conflated notions.
Quote | Report to administrator
Bunga Bet