UDB board accuses IGG of malice

By Cyprian Musoke

Members of the current Uganda Development Bank (UDB) board have accused the Inspector General of Government (IGG) of not acting on former managers who stole huge sums of money from the bank.

Whereas the new board turned the institution around after sacking thieving managers, they added, the IGG instead instituted a probe against them instead of the alleged “thieves” on information of a “whistle blower” from the sacked team.

Appearing before the committee on commissions, statutory authorities and state enterprises Tuesday, board Chairman Samuel Sejjaaka, flanked by his Deputy Dr. Stephen Robert Isabaija, said the board, after three audits, referred the officials’ cases to Police and IGG.

While Police arrested and held the officials for a couple of days before giving them bond, the IGG did nothing, only to turn her guns on the new board and management on grounds of favouritism in appointing the new Managing Director.

Other members of the current Board appointed in May 2012 also includes Omoding, the HRM Uganda Communications Commission (UCC), Victor Byaruhanga and George Nyeko.

“When we first  met we found out that the bank had no audited books of accounts nor updated loan registry so we asked Pricewaterhouse to o an audit because they did not believe in the accounts given to them.“

“We contacted the Auditor General who also issued a disclaimer. So the board suspended management and we reported the matters to Police. Five managers were suspended including the CEO, Director Development Finance, Corporation Secretary, Heads of IT, Finance and HR,” he explained.

When the two went to court saying they were not given a hearing we later terminated their contracts and paid off the remaining time except the CEO because the HR was not competent to run the Bank alone. Court later ruled that we were in order to hire and dismiss staff,” Ssejjaaka explained.

“Soon after, were probed by the IGG on a number of issues like dismissal of a whistle blower, US$10million loan we were supposed to approve. 

He said there was a lot of mismanagement of funds but now non-performing loans have dropped, and profit grown from Sh3.6b in 2012 to sh5b as at 2014.

Deputy Board chair Isabaija said; “We are the ones who went to the IGG and said the old management had caused loss of funds but why did she concentrate on a whistleblower’s information on the new management we put in place? She should also have investigated the old management which had caused loss of funds,” he said.

MPs Francis Olaki asked for evidence and copies of the court rulings, cases won and correspondences with the IGG. You should bring evidence of the cases and how they were resolved,” he said.

Igara East MP Michael Mawanda wondered whether the new management had not cooked the figures of growth to create a “smokescreen” that they had managed to turn the institution around.

John Mulimba (Samia Bugwe) wondered why non-performing loans remain at 36% and over sh1600 million written off.

Current Bank CEO, Patricia Ojangole, said they inherited a bad loan book with 60% non-performing loans but we have worked hard towards recovery through more stringent guidelines like not adding more loans to customers who are non-performers.