The Criminal Investigation Department of police (CID) has written to Bank of Uganda to produce the current Director Financial Markets Development, Benedict Sekabira in court to answer charges of concealing title deeds under section 278 of the penal code.
This comes after two years since the Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) chaired by Bugweri County MP Abdu Katuntu, recommended that Central Bank officials involved in the wrongful and illegal sale and closure of defunct banks be held personally liable.
The banks included International Credit Bank, Greenland Bank, Cooperative Bank, Global Trust Bank, National Bank of Commerce and Crane Bank.
Earlier last month, the Criminal Investigations Department confirmed that it had commenced investigations into the matter and said it would bring the accused to court.
The investigations came following a petition by a one Nelson Habaasa and Brian Kakuru who asked the CID to use already existing damning evidence by the Auditor General and Parliament to bring Benedict Sekabira, the current Director Financial Markets Development, Dr. Louis Kasekende the former Deputy Governor; Mrs Justine Bagyenda, the former Executive Director, Commercial Bank Supervision to courts of law.
In its response to the petition, CID said, “We did receive this complaint and by its very nature, it requires us to institute a team of very experienced investigators; a team of financial analysts, a team of auditors and at the same time, we shall also equally engage the office of the Director of Public Prosecutions (DPP), to ensure that the investigation is prosecution led/guided,” Charles Twiine, the CID spokesperson, told NTV Uganda in an interview on Sunday, June 4th 2020.
“There is no one above the law. We have investigated prosecuted, people whose positions are beyond the officials in bank of Uganda. And therefore I want to allay the fears of people; people should not worry that those people are above the law. No. There is nobody we cannot investigate. Let them wait. We are going to show them that the people who have been purporting to be above the law, they are going to be investigated. Our evidence is so chronological and scientific, that it will become inherently difficult for somebody to come with his politics to interfere with the evidence,” Twiine also added.
Now, having sanctioned the matter, CID has asked Bank of Uganda to produce Sekabira to court for the charges of concealing title deeds under section 278 of the penal code.
‘’The Directorate has been investigating the above matter that arose from the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) with directives to Inspector General of Police to immediately upon adoption of Special Audit Report on defunct Banks seize all the land titles in possession of JN Kirkland and Associates and MS SIL Investment arising from the loan portfolio sold to MS Nile River Acquisition Company by Bank of Uganda.
‘’This is to inform you that that the Director of Public Prosecutions sanctioned the matter for the suspect to appear in Court,’’ reads a July 27th 2020 letter signed by Director Criminal Investigations Paul Katto Tumuhimbise.
‘’The purpose of this communication is to request you release Mr. Benedict Sekabira to report at CID Headquarters on 30th July 2020 such that he can be produced in court for the charges of concealing title deeds under section 278 of the penal code’’ further says the letter addressed to the Governor BoU.
Conflict of interest
Beyond the Balance Sheet: How Uganda's Top CFOs Are Forging Legacy Through Purpose, People, and Unwavering IntegrityIt should be remembered that The COSASE report found Sekabira culpable for conflict of interest in the sale of loan portfolios worth UGX 135 billion (sold at a discount of 93 percent) for defunct banks to Nile River Acquisition Company a company in which he was an agent up to 12th August 2009. In one of the major findings, the Auditor General found out that, Sekabira was involved in the sale of financial assets belonging to the defunct International Credit Bank (ICB BoU), Greenland Bank and Cooperative Bank worth UGX135bn for a mere UGX8.9bn- a 93% discount! The assets included UGX34bn of loans that had valid, legal and equitable mortgage supported by proper legal documentation. According to the AG, the UGX8.9bn sale price represented 26% of the total secured loan portfolio and 7% of the total loan portfolio!
However in his letter dated 25th February 2019 addressed to the speaker of Parliament Rebecca Kadaga, sekabira who was then a Liquidator agent for Bank of Uganda for International Credit Bank (ICB), Greenland Bank and Cooperative Bank disputed the COSASE Report findings saying the committee was after creating an impression that he was influential in the sourcing the purchaser of the loan portfolio of the closed banks.
In the letter copied to the Governor Emmanuel Tumusiime Mutebile, Deputy Governor Louis Kasekende, Clerk to Parliament Jane Kibirige and Chairperson of COSASE, Sekabira also said that the report contained ‘material misrepresentations’.
“The report notes that I was agent of Nile River Acquisition Company Limited until 12th August 2009. The unfortunate impression created by this is that I acted alone and, presumably, with a conflict of interest. This is not true,” said Sekabira in his letter.
He further said that the report omitted crucial information that he had supplied during the time of investigations. Sekabira explained in the letter that COSASE report did not mention that his actions had been sanctioned by the Executive Committee of Bank of Uganda which information was contained in the meeting minutes held on 17th January 2008.
“I am aware that this information was availed to the Committee by cover of letter of the Governor. The matter was also discussed in the proceedings of the Committee. In addition, I individually passed copies of the same to the Chairperson of the Committee, Hon. Elijah Okupa and Hon. Michael Tusiime,” he explained.
Sekabira also disputed the committee’s findings that he between 12th and 16th February 2007 travelled to New York with lawyer Kakembo Katende a BoU Consultant with M/s JN Kirkland a company that identified Nile River Acquisition as suitable to buy the loan portfolio saying the travels’ dates were false. In his letter, sekabira said he travelled to New York on 22nd July 2007 and that explained the purpose of the travel.
“The purpose of the said travel, as is reflected in the Memorandum, was to discuss 230 loans and to give comfort to the then intending buyer of the Portfolio as to the recovery ability of these loans. I only travelled to New York much later once the transaction was in progress and my input was required to reassure the buyer,” said Sekabira in his letter.
