COSASE: Kadaga blasts BoU’s Ben Sekabira, warns parliament won’t be arm-twisted

By Our Reporter

Parliament will not be blackmailed or arm-twisted by any individuals as it considers a report by parliament’s Committee on Commissions, State Authorities and State Enterprises (COSASE) on the closed seven banks, the Speaker of Parliament Rebecca Kadaga has said.

Kadaga said on Tuesday as MPs started to debate the COSASE report, stating that the House would continue to carry out its mandate and work as it is provided for by the Constitution.

Kadaga’s made comments followed responses by the Central Bank Director Financial Markets Development Coordination, Benedict Sekabira, and Kirkland Associates, who were mentioned and cited for wrongdoing in the Cosase Report presented to the House last week.

The committee chaired by Abdu Katuntu sought to establish whether the right legal procedures were followed by Bank of Uganda in closing Teefe Trust Bank, Co-operative Bank, Greenland Bank, ICB, NBC, Crane Bank and Global Trust Bank.

In his response, Sekabira said that the report “omits crucial information” that he had presented during the course of the investigation, and hence contained “material misrepresentations”.

“I trust that you will indulge me in having the report corrected before it is adopted and that you will avail me the record of proceedings at the earliest,” he said adding that, “ln the event that my requests herein are not met, l will have no option but to conclude that you [Speaker] and the COSASE have elected to treat me prejudicially and with bias.”

Sekabira is one of the longest serving officials at BoU, having began work there in the 1990s.

Sekabira was then serving as Director Commercial Banking and doubled as Bank of Uganda liquidator agent for International Credit Bank (ICB), Greenland Bank and Cooperative Bank.   However, in his letter, Sekabira says that the report contains material misrepresentations.

“The report notes that I was agent of Nile River Acquisition Company Limited until 12th August 2009. The unfortunate impression created by this is that I acted alone and, presumably, with a conflict of interest. This is not true,” says Sekabira.

He adds that the COSASE report does not mention that his actions had been sanctioned by the Executive Committee of Bank of Uganda which information is contained in the meeting minutes held on 17th January 2008 when the request was presented, debated and approved.

“I am aware that this information was availed to the Committee by cover of letter of the Governor. The matter was also discussed in the proceedings of the Committee. In addition, I individually passed copies of the same to the Chairperson of the Committee, Hon. Elijah Okupa and Hon. Michael Tusiime,” he explains.
Sekabira also comments on the committee observed that between 12th and 16th February 2007 he travelled to New York with lawyer Kakembo Katende a BoU Consultant with M/s JN Kirkland a company that identified Nile River Acquisition as suitable to buy the loan portfolio.

He says that the dates stated for his travel are false since he travelled to and arrived in New York on 22nd July 2007 and that the purpose of his travels were clearly stated in a Memorandum to the Governor seeking approval, which approval was granted.

“The purpose of the said travel, as is reflected in the Memorandum, was to discuss 230 loans and to give comfort to the then intending buyer of the Portfolio as to the recovery ability of these loans. I only travelled to New York much later once the transaction was in progress and my input was required to reassure the buyer,” reads Sekabira’s letter of February 25, 2019.