Uganda seizes Libya-owned bank
Mar 26, 2011
BANK of Uganda yesterday relieved the Libyan Foreign Bank of its shareholding in Tropical Bank, in a move to protect customers.
By Samuel Sanya
BANK of Uganda yesterday relieved the Libyan Foreign Bank of its shareholding in Tropical Bank, in a move to protect customers.
The Libyan Foreign Bank, whose assets were frozen under the UN Security Council’s resolution of 1973, owned 99.7% of Tropical Bank’s portfolio.
“All management appointees by the Libyan Foreign Bank have immediately been relieved of their duties and a new management has been appointed,†said Prof. Tumusiime Mutebile the Bank of Uganda governor.
He said the Central bank was taking a series of measures to ensure that there was no business between the Libyan Government, its associated entities and Tropical Bank.
Mutebile added that the appointment of new management would ensure that the Bank was operationally independent of Libyan influence, adding that Bank of Uganda was acting within its mandate, in accordance with the Financial Institutions Act.
He said Tropical Bank was in a sound financial condition and that it would continue with its normal operations.
Dr. Louis Kasekende, the deputy governor Bank of Uganda, revealed that Prince Kassim Nakibinge was the new Managing Director of Tropical Bank, replacing Osama Serrag.
Idris Elhalafi, Mossadek Elallaghi and Hasheem Alhelmi were also affected by the change in management.
However, Gerald Sendaula, the former finance minister, remains the board chairman.
“That new board will be accountable for Tropical Bank; what have been frozen are the Libyan shareholders’ rights,†he said.
He said the Central Bank was free to use the assets of the Bank, since it is an organisation incorporated in Uganda.
He hinted that the Libyan shareholders would resume normal control of the Bank once the asset freezes by the UN were lifted.
BANK of Uganda yesterday relieved the Libyan Foreign Bank of its shareholding in Tropical Bank, in a move to protect customers.
The Libyan Foreign Bank, whose assets were frozen under the UN Security Council’s resolution of 1973, owned 99.7% of Tropical Bank’s portfolio.
“All management appointees by the Libyan Foreign Bank have immediately been relieved of their duties and a new management has been appointed,†said Prof. Tumusiime Mutebile the Bank of Uganda governor.
He said the Central bank was taking a series of measures to ensure that there was no business between the Libyan Government, its associated entities and Tropical Bank.
Mutebile added that the appointment of new management would ensure that the Bank was operationally independent of Libyan influence, adding that Bank of Uganda was acting within its mandate, in accordance with the Financial Institutions Act.
He said Tropical Bank was in a sound financial condition and that it would continue with its normal operations.
Dr. Louis Kasekende, the deputy governor Bank of Uganda, revealed that Prince Kassim Nakibinge was the new Managing Director of Tropical Bank, replacing Osama Serrag.
Idris Elhalafi, Mossadek Elallaghi and Hasheem Alhelmi were also affected by the change in management.
However, Gerald Sendaula, the former finance minister, remains the board chairman.
“That new board will be accountable for Tropical Bank; what have been frozen are the Libyan shareholders’ rights,†he said.
He said the Central Bank was free to use the assets of the Bank, since it is an organisation incorporated in Uganda.
He hinted that the Libyan shareholders would resume normal control of the Bank once the asset freezes by the UN were lifted.