

BoU Scandal: IGG letter to ISO – Alleged Misconduct of Members of the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) – (19.02.2019)





“We cannot trample upon the humanity of others without devaluing our own. The Igbo, always practical, put it concretely in their proverb Onye ji onye n’ani ji onwe ya: “He who will hold another down in the mud must stay in the mud to keep him down.” – Chinua Achebe
Today, the Tories dropped an short assessment of the implications of the “No Deal” Brexit. Which for many has been seen as a damaging affair. This is sort of report, that is dropped today. Isn’t scaremongering, but more a reality check to the ones whose thinking the “No Deal” is good idea.
I will quote significant parts of the report, like this: “Despite the Government’s efforts to prepare for a no deal, a no deal scenario would have a range of significant impacts for the UK”. I will come more to the significant impacts, as they are issued in the report, even as sleek as it is. Only 15 pages, but still has enough meat to hurt your hopes.
Like this: “This estimates that the UK economy would be 6.3-9% smaller in the long term in a no deal scenario (after around 15 years) than it otherwise would have been when compared with today’s arrangements, assuming no action is taken”. That is all a major hit on the economy, as you are shrinking nearly one tenth of the economy, if the worst estimates are hitting the economy.
Another part of hard hitting new realities is this: “In a no deal scenario, both the UK and EU would need to apply customs and excise rules and VAT to goods moving between the UK and EU, as they are currently applied to goods traded in the rest of the world. Every consignment would require a customs declaration, and so around 240,000 UK businesses that currently only trade with the EU would need to interact with customs processes for the first time, should they continue to trade with the EU”. This has been forewarned by plenty, even the likes of me, but not that it has mattered. Maybe, the buck has to get this close only a few days and weeks away. For many businesses and people struggling with movement. To recognize the costs and lack of protocol to deal with so.
Here is the impact on the food import: “One of the most visible ways in which the UK would be affected by delays in goods crossing the Channel is our food supply, 30% of which comes from the EU. Although our food supply is diverse, resilient, and sourced from a wide variety of countries, the potential disruption to trade across the Short Channel Crossings would lead to reduced availability and choice of products”. This means that vital parts of the imports and needed food are stopped, because the availability will go down. There might be shortages and even withheld, because the proper documentation and such is lacking. This should be a worry and show how this is hitting home. To make matters worse: “ In the absence of other action from Government, some food prices are likely to increase, and there is a risk that consumer behaviour could exacerbate, or create, shortages in this scenario. As of February 2019, many businesses in the food supply industry are unprepared for a no deal scenario”. This doesn’t make it better. Only shows that the government haven’t done their job, preparing the industry or the importers who could have made sufficient preparation, as the government could have ensured this. Instead, the public is hit with higher prices and lack of certain food products.
For instance, the issues of Northern Ireland comes returning with fire and fury: “the cumulative impact from a ‘no deal’ scenario is expected to be more severe in Northern Ireland than in Great Britain, and to last for longer. This is because of Northern Ireland’s unique circumstances, including in particular its geographical position as the only part of the UK with a land border with the EU, and the current lack of an Executive in Northern Ireland. The Government has been clear that it is committed to avoiding a hard border between Northern Ireland and Ireland in any scenario”. This shows, that the NI problem, the whole Good Friday Agreement would be played around with, as the Brexit will hit Northern Ireland. They are making hardships not only there, but for the ones across in the Irish Republic. That is what seems to be happening with the No Deal Brexit. Not only hit the economy of NI, but in general not following the promises made to that part of United Kingdom.
Seemingly done this silently: “Government has been accelerating its preparations for a no deal scenario since September, with a particular emphasis since December 2018. However, the short time remaining before 29 March 2019 does not allow Government to unilaterally mitigate the effects of no deal. Even where it can take unilateral action, the lack of preparation by businesses and individuals is likely to add to the disruption experienced in a no deal scenario”. Seems like they haven’t done enough or kept it low-key. The preparedness haven’t been there, if it had been, than the businesses would have been more prepared. They have clearly not kept everyone informed about their accelerating plans or assessment of a no deal.
For the ones saying the Brexit wouldn’t matter, wouldn’t cost or wouldn’t change things in a negative perspective. You were wrong. The realities of possible losses of fortunes should frighten anyone. The possible troubles of imports of foods and other vital items should also be a sign of what sort of self-created nightmare the UK have made for themselves.
The government are trying to say they are not having mud on themselves, while pushing the public into the mud. To repeat from the beginning, like the Igbo says: “He who will hold another down in the mud must stay in the mud to keep him down”.
Enough of the mud of a No Deal. Peace.
Reference:
HM Government – ‘Implications for Business and Trade of a No Deal Exit on 29 March 2019’ Published: 26.02.2019











Well, sooner or later this report was bound to happen as the deadline of the Parliament’s Commissions, Statutory Authorities and State Enterprises (COSASE) report into 7 defunct banks in the Republic. It had to be interesting to see how the National Treasury or National Bank, the Bank of Uganda handled it, as the Bank have been going around all cowboy and not with protocol. As the proper guidance nor minutes have arrived to the COSASE as the months of investigations has gone on.
As well, the lack of trust between the parties, lawyers and stakeholders itself. Therefore, the report, had to stinking of it, the lack of due diligence and care for delivering proper craftsmanship, where the profession and their ethics are shining true.
Instead the process of investigation have shown utter contempt of honesty and transparency, as documents have gone missing and people have taken trips away, while they were supposed to testify to the Committee.
That is the introduction. Let’s dig into the mess, which was unleashed today on the 21st February 2019.
“The committee further observed that there are no documents relating to the post closure and management of Teefe Trust Bank assets and liabilities. This further complicates the process of winding up including resolving claims and some securities still in possession of the Central Bank” (COSASE, P: 9, 2019).
“No inventory report was availed in respect of ICB but an inception report for liquidation by the Liquidation Agcnt (KPMG) dated 30th September 2001” (…)”without a proper inventory report, BoU did not know what it was taking over in terms of entirety of assets and value. Accordingly, BoU acted in breach of section 32 (3), of the FIS, 1993” (COSASE, P: 10, 2019).
Sold on the Same Day:
What further the report states is that the National Bank of Commerce was closed and sold on the same day. This being done on the 27th September 2012. The takeover and sale took only 6 hours time and was in convention of the FIA. The same actions happen to Global Trust Bank (U) Limited, which was closed and sold on the same day, on the 25th July 2014. This was also done in convention of the FIA.
While on Crane Bank:
“The auditors produced the inventory report on 21st of December 2016 however, BoU had invited DFCU to bid for the purchase of assets and assumption of liabilities of CBL on 9nd December 2016 and subsequently DFCU submitted the bid on the 20th December 2016 a day before the production of the inventory report” (…) “BoU did not carry out valuation of the assets and liabilities of CBL. BUT relied on the inventory report and due diligence undertaken by DFCU to accept their bid to arrive at the P&A. However, the final inventory report was submitted on 13th January 2017. In essence, the final inventory report was never used in evaluating the bid for the purchase of assets and assumption of liabilities of CBL” (COSASE, P: 12 & 13, 2019).

Selling assets on discounts:
“In the case of ICB, Greenland Bank and Co-operative Brank, the total loan portfolio sold of UGX 135bn included secured loans of UGX 34.5bn which had valid legal or equitable mortgage on the real property and were supported with legal documentation BUT were sold, to M/s Nile River Acquisition Company at 93% discount” (…) “Whereas the GTB and NBC discount percentages of 20 and 30% respectively appear reasonable, the 93% discount in respect of the loan portfolio of ICB, Greenland Bank and Co-operative Bank acquired by M/s NRAC was incredibly outrageous” (COSASE, P: 23-24, 2019).
Winding Up:
“The winding up process of all the defuct banks has taken an unjustifiably long time to settle creditor claims. For Teefe Trust Bank (26 years), Co-operative Bank (20 years), ICB (21 years), Greenland Bank (20 years), NBC (7 years), GTB (5 years) and CBL (2 years)!!! Regrettably, many of the creditors and shareholders have and indeed continue to die” (…) “Due to absence of documents, it was not possible to ascertain whether the UGX.9 1 .22bn used to settle customer claims of ICB, Cooperative bank and Greenland bank went to the bonafide beneficiaries. The absence of documents could among others be attributed to the long delay in concluding the winding up process” (COSASE, P: 39, 50 2019).
This is really just a proof of some of the mismanagement and quotes that proves how the Bank of Uganda didn’t do due diligence. They didn’t fix the issues, neither the work that was needed for the distressed financial institutions, the BoU didn’t follow the laws and statutes. All of the banks seems to be closed without protocol. Without proper documentation, neither overlooking assets and the securities.
Therefore, the Bank of Uganda … have not acted as the Central Bank and having the supervisory role over the financial market. They have surely acted in ill-will and not like they are supposed too. If not, these seven banks shouldn’t been closed like this, even closed and sold within 24 hours. Peace.

Today on the 20th February, the Governor John Mangudya of Zimbabwe Reserve Bank have launched a new currency in the Republic. This is the second time within the amount of three years, that the Zimbabwe African National Union – Patriotic Front (ZANU-PF) have launched a currency.
Because on the 26 November 2016, the same authorities launched the Bond-Notes. As that currency been struggling ever since. As the promise of 1:1 Forex Exchange between the Bond-Notes and US. Dollars. However, that haven’t been the issue, as the Bond-Notes been weaker than that. Significantly weaker, but the authorities have played around like it has the same value.
The RBZ have launched the RTGS Dollars, which are fully named Real-Time Gross Settlement Dollars. In all means of the name is real long name for a currency. Even the RTGS Dollars sounds like insignificant transaction. Because, the RTGS is like a crypto currency, a digital one, where the amount of RTGS Balances + Bond-Notes = RTGS Dollars.
Therefore, the RTGS is based on the liquidity of RTGS Balances, which means the Mobile Money Transactions plus the Bond-Notes. That is showing the lack of value in the currency before even starting.
What is showing the nightmare of the whole Bond-Notes of 2016 is relaunched today in 2018. It is just repacked and they hope this will maintain stability of the exchange rate. However, it is now the whole multi-currency system in a boiling pot and they hope it becomes a tasty stew, by blending in a new feature. Which seemingly is built on a transactions system, instead of a assets and liquidity built into a stable financial market. As the currency is supposed to be trusted and be a state instrument for transactions. Instead, here it is built on shaky grounds and just awaiting to sink.
The governor of the bank has in 2017 called the economy an albatross. Certainly with the RTGS Dollars, that is not changing. As the unfortunate ideas continues arising and they think these will solve the lack of foreign exchange and the lack of input into the system. However, they are not thinking straight and unlocking new scary scenarios. As they are now trying to shield the Bond-Notes, get them into the digital transactions of the RTGS Dollars, which would hopefully get more funds into the system. It might infuse more funds, as these are returning and become taxed by the RTGS taxes. That is surely securing the values and lack of trust in the Bond-Notes, which now will be transferred to the RTGS combined with the RTGS Dollars. That later can be changed again into the US Dollars. That shows the weakness of the whole system. Just like it was with the Bond-Notes alone.
The RTGS Dollars will be devastating as the launch of Bond-Notes. This is just another storm in a glass. Now, the state and republic can just await another hurdle. The RTGS Dollars will be as hectic or maybe even more than Bond-Notes. Even if people are familiar, the reality is that US Dollars have been the saving grace and even civil servants wanted their salaries paid in that.
Therefore, the current future is the new digital currency, the RTGS Dollars will be a rocky road. How it will be? Who knows? But the launch of Bond-Notes was a mess, this will surely be no different… Peace.

