BAGYENDA USURPED BOU LEGAL POWERS - KATUNTU

  • Posted on: 9 January 2019
  • By: sanyu-fm-news

Members of Parliament on the Committee of Commissions, Statutory Authorities and State Enterprises have castigated the former Executive Director Supervision at Bank of Uganda, Justine Bagyenda, for usurping the powers of the legal department of the Central Bank.

MPs are concerned that Bagyenda hired external lawyers for the resolution of Crane Bank, without seeking the approval of the head of the legal department.

External lawyers MMAKS Advocates were paid nearly 900 million shillings for transaction advice on the defunct Crane Bank. However letters of engagement detailing the scope of work remain missing.

MPs have raised the alarm, over the absence of terms of reference for the lawyers, despite a memo to the governor seeking approval of payment.

Despite repeated demands for terms of reference by MPs, the letters remain missing, and today MPs have raised several queries regarding the money paid out.

Justine Bagyenda requested that MMAKS be invited to produce the terms of reference, but Katuntu ruled that it was the mandate of the bank to produce the letter.

AUDIO: “Really the first people…”

Following intense questioning by MPs, the head of legal Margaret Kasule revealed that she was never involved in the process to hire external lawyers.

Committee Chairperson, Abdu Katuntu, then accused Bagyenda of over-stepping her mandate.

AUDIO: “Non Lawyers are the ones giving instructions….”