
Kenya Revenue Authority: Press Statement – KRA has not abolished filing of tax returns as reported (25.02.2019)








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.

