Bank ignored advice on LC bikes
Sep 29, 2011
THE Accountant General, Gustavio Bwoch, has said Bank of Uganda paid over sh4.7b meant for purchase of bicycles for local council leaders without his consent.
By Joyce Namutebi
THE Accountant General, Gustavio Bwoch, has said Bank of Uganda paid over sh4.7b meant for purchase of bicycles for local council leaders without his consent.
He said the Central Bank paid Stanbic Bank the money in March before he made the statutory audit clearance.
“This payment was made in advance without my clearance. The audit clearance was given on April 5,†Bwoch told the parliamentary committee on public service and local government on Tuesday.
The Accountant General was invited to the committee to clarify on his role in the transaction. He appeared with officials, of Bank of Uganda and Stanbic Bank.
Bwoch said: ‘‘The Solicitor General should not have signed the contract in the absence of the bicycles. That is the fundamental error.â€
The committee asked the criminal investigations department to interrogate three senior officials of Bank of Uganda.
The officers are Richard Byarugaba, director of payments and settlement department, Margaret Kagwa Kasule, legal counsel and John Chemonges, director banking.
The committee chairperson, Raphael Magyezi, said the bank received about sh100m as a fee to perform a duty.
“Bank of Uganda did not perform its role in safe guarding government interests in this transaction. You did not verify documents,†Magyezi said.
He also argued that the bank found discrepancies in the shipping documents but went ahead to pay for the bicycles.
“It is clear Bank of Uganda erred. They should be handed over to CID for further investigation,†Jack Wamai, a committee member, advised.
MPs directed Stanbic Bank to freeze accounts for Patrick Bagarukayo, Nishita Maina and AITEL.
THE Accountant General, Gustavio Bwoch, has said Bank of Uganda paid over sh4.7b meant for purchase of bicycles for local council leaders without his consent.
He said the Central Bank paid Stanbic Bank the money in March before he made the statutory audit clearance.
“This payment was made in advance without my clearance. The audit clearance was given on April 5,†Bwoch told the parliamentary committee on public service and local government on Tuesday.
The Accountant General was invited to the committee to clarify on his role in the transaction. He appeared with officials, of Bank of Uganda and Stanbic Bank.
Bwoch said: ‘‘The Solicitor General should not have signed the contract in the absence of the bicycles. That is the fundamental error.â€
The committee asked the criminal investigations department to interrogate three senior officials of Bank of Uganda.
The officers are Richard Byarugaba, director of payments and settlement department, Margaret Kagwa Kasule, legal counsel and John Chemonges, director banking.
The committee chairperson, Raphael Magyezi, said the bank received about sh100m as a fee to perform a duty.
“Bank of Uganda did not perform its role in safe guarding government interests in this transaction. You did not verify documents,†Magyezi said.
He also argued that the bank found discrepancies in the shipping documents but went ahead to pay for the bicycles.
“It is clear Bank of Uganda erred. They should be handed over to CID for further investigation,†Jack Wamai, a committee member, advised.
MPs directed Stanbic Bank to freeze accounts for Patrick Bagarukayo, Nishita Maina and AITEL.