MinBane

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Archive for the tag “DFCU”

Opinion: Katuntu now have to bite the bullet!

Abdu Katuntu got to keep the position and chairman of the Parliament’s Commissions, Statutory Authorities and State Enterprises (COSASE) on overtime to finish a report on the closure of 7 defunct banks in the Republic. He got the lifeline by the Speaker Rebecca Kagada in Parliament in January, as he wasn’t ready to deliver the report.

Katuntu as the MP who ran the committee decided on when to drop the report, which the report was dropped on the 19th February 2019. Now, today the IGG letter of the 19th February 2019 asked the Internal Security Organization (ISO) to look into the investigations and the possible kick-backs for a lenient report, which this was. The Report dropped was sleek, soft and guarded. Therefore, the question of what the COSASE is shielding or didn’t dig into could come into question.

If there was some bankers, some inside Bank of Uganda or anyone else of the Stakeholders of the defunct banks would enforce kick-backs to the Chairman and the Committee wouldn’t be surprising in relations to this is the Republic of Presidential Handshakes. In the Republic where the MPs are paid for voting in favour of favourable bills and motions of the Presidents agenda. Therefore, the initial idea of the IGG fits the state of affairs.

BUT, this is a hit-job, as this is leaked as the COSASE is getting new leadership, as the report has been delivered to the public and to the Parliament. The IGG and AG could act upon the work that Katuntu delivered. Nevertheless, there are more stakes at hand, as there are invisible hands overshadowing, as the cronies and investors, whose could be close to the President could be implicated. That is why the President was so adamant statements about the whole investigation and that it should have been done behind closed-doors. However, that didn’t happen.

Katuntu thought he did good, thought he delivered for the ones he made promises too. He thought with the extended time and promise of leverage, that he wouldn’t be hit. However, the President and his security organization is still on a vengeance. They are retaliating now, because the state suddenly looks into it. Because, the state is trying to save face.

It is weird timing that they are starting to investigate now, as they could have looked into the issues within the BoU before this, as there was plenty of banks closed wrongfully. Still, it didn’t matter then, but now it does. That looks weird and looks like a hit-job.

That Katuntu is now the latest victim… not the last, whose being used, tricked and later discarded. Peace.

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A brief look into the COSASE Report: Digest the lack of due diligence!

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.

Opinion: It is Bosco’s own business deals that is the reason for the sorry state of Owino Market!

The way to wealth is as plain as the way to market. It depends chiefly on two words, industry and frugality: that is, waste neither time nor money, but make the best use of both. Without industry and frugality nothing will do, and with them everything.”Benjamin Franklin

You can go back to 2013, when Ham Enterprises pitched the Nakivubo Stadium to takeover for the vendors at Owino Market or the Park Yard. Therefore, the actions of President Yoweri Kaguta Musveni calling out people is outrageous. As Bosco is forgetting his own business-deals and agreements that directly interfered with the Kampala Capital City Authority (KCCA) and City Hall. All of these had to comply, as the buy-outs of the vendors and the lack of possible movements, the building of the Stadium has made issues since 2013 and boiled over in 2017. When the KCCA and the Ministry of Kampala Beti Kamya issued an order to throw them out.

That is why the sorry state of the area. This should be knowledge for the micro-managing President. However, he acts like it as a blank slate and he has no involvement, when the agreement between Ham Enterprises and the state, happen at the State House and he was signing the documents, ordering the Ministry, KCCA and take it out of the hands of the City Hall. So, it is really insincere what he was saying yesterday.

The government is working out modalities of retrieving these market titles from the rich and hand ownership back to vendors. Kampala Capital City Authority will help oversee management of these markets. Whereas I commend traders in Owino and Nakasero markets for working hard to create wealth through their Saccos and responding to our NRM call, I am unimpressed by the poor state of the Old Taxi Park. I am told this is partly due to the leadership wrangles among the taxi park stakeholders facilitated by opposition leaders in the city. Stop electing selfish leaders who only care about their salaries. However, we shall fix this matter” (Yoweri Kaguta Museveni, 05.10.2018).

That we can really see, thanks to all the propaganda and the pictures of yesterday, that the 2013 deal and changes of the Park Yard haven’t finished yet. As the President was most likely there to check his investments and his trade-offs. That is why he was bothered of the slow progress, as the planned stadium are still not done and there has gone 5 years. This is one year after the market and vendors was moved by decree of the appointed Minister Kamya.

The President is mad that Lord Mayor Erias Lukwago is a selfish leader, when in general, the deals done in Kampala and Owino is his. Meaning the President is selfish, not Lukwago who has fought for the vendors. That is the ironies, but also the reality. That is why the 32 years and going Executive, is forgetting his privilege and use of power. Ham Enterprise is surely working, but slowly, the stadium is in the building process and surely why he visited and complained, as he expected it to be done yesterday. So his investment could grow proper yields, like his farms. However, that is not how it works with urban development, especially when you need spaces for malls and other vendors, who was kicked out.

Would he ever fix their issues, the bad loans in the DFCU bank, which the vendors had in 2017? No, he wouldn’t care or carry them as their livelihood is at stake? But that isn’t the cup of tea that this President carries. Peace.

Opinion: Markets endangered in Kampala, by Mzee and his cronies!

museveni-trader-pci

“Fury, angst and despair as hundreds are evicted from Park yard market. The once vibrant market is now a sea of rubble. Is it high time such rickety structures left the city center or is KCCA impinging on the core rights of the masses? Only responses in well-written English will be tolerated” (The Kampala Sun, 27.02.2017).

The traditional market of trade between small vendors and their costumer’s are under fire, not really burning, but still they are stopped. Honourable Beti Kamya, the Minister for Kampala has decreed closure of markets and such, as well as KCCA has unleashed a permit that stops others. Therefore two markets are eaten by a pivot from the State with Minister Kamya and the Kampala Capital City Authority (KCCA) under the leadership of Dr. Jennifer Musisi, who has taken power over the Owino Market. While both ladies are working against vendors and the Lord Mayor Erias Lukwago , who doesn’t believe in this sort of decree without any procedure in either Authority or at the local councils. Therefore the sanctioned rule should go through the Mayor and also the KCCA. Something, the decree didn’t as it was served from the hand of Minister Kamya without any consideration of the rest of the leadership and government structure of the capital of Kampala. That was something that was bound to happen… though the innocent part is he vendors who are under-fire by the State Minister who doesn’t see their turmoil or trouble at all.

“Security has sealed off Nakivubo park-yard market before the ’30 days’ ultimatum given to vendors by Minister Beti Kamya to vacate elapses. Last week, the minister issued a directive ordering vendors at the Park Yard market to vacate citing lack of enough toilets which was a health threat. Lord Mayor Erias Lukwago said Minister Beti Kamya was ‘just politicking’ over the market since she didn’t have an alternative for the vendors. Some vendors have vowed not to leave the market until they are killed” (NBS Television, 27.02.2017).

“Mayhem masterminded by state agencies!!!! How could Police organise goons to lynch and/or harm KCCA elected leaders and MPS in course of executing our duties in the city centre!?.. Mr. Kayihura and Madam Betty Kamya, what motivated you to put our lives in harm’s way?. Our visit to park yard market was lawful as it was sanctioned by a resolution of the Authority that convened this morning. You invade the market on a Sunday night, cordon off the entire place without a court warrant or hoarding permit from KCCA, and then unleash terror on the business community and learders?. Terrible!!!” (Lord Mayor Erias Lukwago, 27.02.2017).

owino-market-feb-2017

Owino Market has been closed because of the issue with DFCU bank that the vendors there in total owns the bank Shs. 4.8bn. Therefore this is a current issue with bankers, but the strange act is that the Police sealed off the market and even destroyed the old vendors’ places, like they want to trade it off and get rid-off the old small-time vendors who have kept stalls there. Today the market was officially sealed off, with the police cars and metal fences by the authorities.

So know we know that the DFCU who just bought Crane Bank after it was under care-taking by the Bank of Uganda. So the funds used to by Crane Bank has to earned back, because DFCU needs profits, as they are even use their newly found wealth to take away the possibility for one of the most popular markets in Kampala. You can wonder who is investing directly and who else has greased the wheels of the minister.

The pictures of football stadium that was planned back in 2013 has resurfaced with pictures of investor together with President Yoweri Museveni that must have sparked the opportunity to pay for the sanction land and given permission to destroy the vendors place to trade goods, which has been a popular market.

If there are other unions of vendors who is struggling with debt like the Owino, expect the bank to erase the place, fill it with investors who knocks on the State House doors and gives permission to crash the place, fill it with fancy malls that won’t be affordable for other than ones on top of Nakasero Hill or Bugolobi, the rest of Kampala cannot afford even soda inside the new furnished extravagant building. The same will happen around this project where the bank DFCU and State has shaken each other’s hand, given envelopes and made sure to get a go ahead.

nakivubo-stadium

Because of this they have even gone further, they we’re given 30 days to vacate the premises on the 7th February 2017 after a decree made by Minister Beti Kamya, so by my rare calculation they should be taken away by the 9th March 2017. So that the State together with the Police was invading the premises last night and this morning; that being 26th and 27th February they did it instead.

So the state of Uganda doesn’t need to be transparent or accountable, as long as they have possible to gain monies into the state coffers and getting vouched from the state house. Rule of law doesn’t matter as long as Mzee says “do it” or “yes”. That what seems to have happen, the vendors and traders loses their ground because of investors has spoken at the state house. Shows the matter of how involved the state house is in all business deals in Uganda. That shows if you have strawmen to send to the state house, the police and the local authorities to work for the corporation. So that the locals or others with “debt” or lacking “titles” can be evicted, that seems like way the legitimize their acts towards the ones who has had the land in the past.

The same happens in Owino or at the Park Yard marked. There are no mercy, only eviction so that a football stadium and other futuristic building appearing there, because President Museveni said it was okay. Peace.

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