The Bank of Uganda (BoU) has been asked to explain the process it followed when selling off assets belonging to the now defunct Cooperative Bank.

This was revealed in a letter dated January 11 2023 issued by the Solicitor General’s office.

Addressed to the BoU legal counsel, Margaret Kasule, the solicitor general’s letter claimed that the details of the sale of the assets of the bank were needed as the Minister of Trade, Industry and Cooperatives, Francis Mwebesa, had sought legal opinion regarding the re-establishment of the bank.

Which Cooperative Bank did the Bank of Uganda actually sell? If is the latter, why were the assets of the former [Cooperative Bank established in 1963] seized and sold instead?” the minister asked.

The Bank was established in 1964 under the Cooperative Societies Statute of 1963.

While addressing the matter, the director communications BoU, Charity Mugumya, said the Cooperative Bank that was established under the law in 1963, was transformed into a corporate entity in 1997 under the Company Act, as a precondition to receiving USAID funding.

She added that that transformed entity is what was closed in 1999 and whose liquidation was concluded on 25th July 2020.

Reference is made to your email below and your query therein. The Cooperative Bank was established under the law in 1963, was transformed into a corporate entity in 1997 under the Company Act, as a precondition to receiving USAID funding. This transformed entity is what was closed in 1999 and whose liquidation was concluded on 25th July 2020,” she said.

This however caused the Minister for Trade to further wonder why BoU seized and sold assets of Co-operative Bank that was established under the Co-operative Societies Statute of 1963, yet it closed a different Co-operative Bank established in 1997 under the Companies Act.

Charity Mugumya could not respond to the matter as government revives efforts to have the Cooperative Bank re- established despite facing challenges of ownership.

,Pulse Uganda,

WP Radio
WP Radio
OFFLINE LIVE