MPs quiz Opagi over 80% share transfer to BOU

By Joyce NamutebiTHE parliamentary adhoc committee probing the sale of Uganda Commercial Bank Ltd. yesterday questioned the Privatisation Unit director, Michael Opagi, over the sale of the bank.Opagi, however, failed to tell the committee to whom the 80% shares of the bank were transferred after the sale.At one time, Maj. Bright Rwamirama (Isingiro North) warned Opagi that he was on oath and should speak truthfully.The committee, chaired by Ephraim Kamuntu, demanded from Opagi the total cost of the failed divestiture of UCB, and the cost of the second divestiture.Opagi at times in reply to questions fired at him said, “I wouldn’t like to give an opinion on that.” Beatrice Kiraso (Kabarole) asked him to comment on whether there was conflict of interest where Bank of Uganda was deeply involved in the first failed sale of UCB, played a supervisory role and again continued with its sale a second time. Augustine Ruzindana (Ruhama) asked what law applied to the sale agreement. “You have been involved in many privatisations. What country’s law applies to the sale agreement?” he asked.He asked Opagi whether he knew the arbitration of the first sale cost Uganda sh11b.Ruzindana also asked who would pay terminal benefits of the bank employees who might lose their jobs. But Opagi said under the PERD statute the matter would be resolved under the redundancy account.But Opagi could not answer whether there was a merger agreement between UCBL and Stanbic Uganda.James Mwandha (Disability Eastern) queried whether DRIC addressed the fact that the bank at the time of sale was a viable one. Opagi said DRIC did not address itself to operations of the bank before sale.Ends