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Mutebile asks for more time to react to Shs20b demand by Cooperative Bank client


Sept. 13, 2019

KAMPALA- A meeting of the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), which is probing how some of the clients of the defunct Cooperative Bank were deprived of their savings and properties during the closure of the bank by Bank of Uganda (BoU), flopped on Thursday after the governor, Mr Emmanuel Tumusiime Mutebile, who was expected before MPs, asked for more time.
COSASE chaired by Mr Mubarak Munyagwa (Kawempe South) is probing how BoU officials mismanaged the liquidation of Cooperative Bank in May 1999 and inflicted losses to some of the clients who had deposits, shares and mortgages with the bank.
One of the victims, Mr Chris Tushabe Karobwa petitioned Parliament with demands of payment of Shs20 billion from the Central Bank.
On August 29, Mr Mutebile who was made to testify on oath, asked for two weeks to be able to compile information in defense of the Central Bank concerning Mr Karobwa’s claims on his properties and money that he wants refunded.
But the Thursday meeting did not take place after the governor failed to show up. Daily Monitor learnt that Mr Mutebile on Wednesday wrote to the Committee Chairperson seeking extra time to prepare his presantation.
“We request that the meeting be rescheduled to September 17, 2019 in order to allow us to gather more information required by the Committee,” Mr Mutebile’s letter seen by Daily Monitor, reads in part.
Mr Munyagwa was not available for a comment but some of the MPs on the Committee told us they had seen the letter but were not authorised to give the position the committee.
Mr Karobwa said that he suspects the governor changed his mind after seeing that much of his “lies” in a written submission to COSASE have been challenged.
“I took a copy of my written response to the Governor yesterday (Wednesday) and immediately after leaving Bank of Uganda, they panicked and asked for more time. The Governor should just accept the truth and pay me without wasting Parliament’s time” Mr Karobwa said.
In his petition to Parliament, Mr Karobwa saying that BoU brought down his business empire after officials mismanaged properties worth Shs1.42 billion which he had mortgaged in Cooperative Bank before it was closed and liquidated in 1999.
He also claims that Shs3 billion that was on his account in Cooperative Bank at the time of closure was stolen on top of BoU seizing and grounding his two Mercedes Benz lorries.
Mr Karobwa who has slapped 25 percent interest on each of his cash claim, alleges that BoU erred in retaining officials who mismanaged Cooperative Bank whereby some of them were assigned to liquidate the same financial institution.
He says that as a person who held an account in the Cooperative Bank’s Kasese branch lost titles to his properties which he had mortgaged and up to now, the Central Bank has ignored his pleas.
The businessman claims that BoU admitted in Court in case reference HCCS 815/2000 that the ended of the liquidation process, he was wrongly deprived of Shs3 Billion and an overdraft of Shs600M on top of mismanaging his properties worth Shs1.4 Billion. The properties were sold out to Nile Acquisition Company Ltd in 2007, a transactions he claims was illegal.
Cash demands
Shs1.01b (124631 Euros) as replaced for two Mercedes Benz Truck Heads
Shs303.6m ($41500) as replacement for two Mercedes Benz Trailers
Shs4.8b as monthly rental income for two properties in Kasese, from May 19, 1999 to date
Shs4.8b as monthly rental income for two Mercedes Benz Lorries, from May 19, 199 to date
Shs10m with interest of 25 per cent since May 19, 1999 for shares he held in Cooperative Bank
Shs761.3m with 25 per cent interest since May 19, 1999 for missing Bank Account documents
Shs600m with 25 per cent interest since May 19, 1999 for missing overdraft which he was forced to pay in cash.
Shs3b with 25 per cent interest since May 19, 1999 that was on his account before Cooperative bank closure.
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