By Kitts D.Mabonga
As the country continues to reflect on the shocking actions the Central bank undertook while shutting down commercial banks that were not performing to expectations,a senior line minister has also poured cold water on that very transaction.
While appearing before the house committee probing the bank of Uganda sale of seven commercial banks today, the minister of finance planning and economic development Martia Kasaija has regretted as to why that incident happened.
Kasaija told the COCASE committee chaired by Abdu Katuntu that he was disappointed that the central bank undertook that road to sell off Crane Bank yet their were clear positive avenues that it could have used to keep it afloat.
He observed that Crane bank was a big and sound bank that should have been given all necessary support to remain in operation and that he was grateful to COCASE for having come out to expose the rot at that giant financial sector regulator.
“Am very thankful to this committee for having come out to expose the weaknesses of the central bank of whichreport shall guide them to take action like changing the laws to ensure that it follows the laws that mandates its existence”noted the minister.
Kasaija explained that ever since he became finance minister,he does not recollect as having undertaken any study to see how this giant operated and that it was timely that they would use the report to fix the mess with a view that the grossly eroded confidence returns.
Katuntu ordered that the Central Bank must be compelled to recover and refund the funds it seized as a result of their arbitrary closure of these banks since these funds came into their custody as the regulatory body.
“Bank of Uganda should recover these funds since it held them in public trust and the owners are now asking tough questions as to how they used those funds without following the law” noted Katuntu.