Daily Monitor Editorial | Cosase Must Account for Defective Report on Closed Banks

Posted February 28, 2019 by Ugandan Diaspora News Team in BOU - Bank Probe ~ 2,481 views


DAILY MONITOR EDITORIAL – On Monday, the Committee on Commissions, Statutory Authorities and State Enterprises (Cosase), presented its report on the closure of seven banks before Parliament, triggering a raging debate on Tuesday. Ironically, the rage was not so much about the committee’s findings, but rather the defectiveness of the report for lack of substance.

Members of Parliament of diverse political affiliations – Opposition or ruling party – scorned the report as empty and devoid of value for which it was appointed to deliver. The legislators were particularly furious that the report lacked recommendations or sanctions on specific culpable officials in the closure of seven banks under investigation.

The only attempted sanctions point to collective culpability and, therefore, are hard to adopt or enforce without an additional investigation by a separate body.

For example, the committee states that the culpable Bank of Uganda officials should be held individually accountable, but it does not name them. This defeats the purpose of the inquiry which was to establish individual culpability in the closure of the banks and determine appropriate punishment.

The committee chairperson Abdu Katuntu does not deny the lapses of the report, but blames them on the wrangles over the committee leadership after its tenure expired in January and President Museveni’s alleged objection to the probe.

However, these excuses cannot justify the defects or exonerate the committee of culpability of failing to make specific findings and enforceable recommendations to help Parliament take appropriate action on the offenders.

The Cosase tenure was extended by the Speaker of Parliament and whatever contrary views of the critics, there was nothing to stop the committee from making a worthy report. The alleged objection by the President is also untenable. If the alleged objection was so influential, why didn’t it deter the committee from proceeding with the probe?

The recommendations and findings in the report are significantly different from what was witnessed during the public proceedings of the inquiry. During the proceedings, some Bank of Uganda officials were interrogated and pinned on particular wrongs

There is also information that some owners of one of the closed banks had stolen huge sums of money from the bank, but were later made to refund it after they were pinned by an international audit firm hired by the Central Bank. However, in the Cosase report to Parliament, none of them is named to take personal culpability. Why?

This appears to be a wasteful inquiry that requires Parliament to probe into why the legislators made such a report. Was it an oversight or a deliberate omission? Cosase members must answer.

Source – Daily Monitor

About the Author

Ugandan Diaspora News Team

Ugandan Diaspora News Online is an independent, non political news portal primarily aimed at serving Ugandans who work and reside outside Uganda. Our aim is to be a one stop shop for everything Ugandan and the celebration of our Ugandan heritage.


Be the first to comment!

You must be logged in to post a comment.