Greenland Bank ShareHolders Accuse Central Bank of Fraud

  • Posted on: 5 February 2019
  • By: sanyu-fm-news

The shareholders of Greenland Bank in liquidation have accused the Central Bnak of fraud in the handling of securities for loans of the defunct bank.

The shareholders were meeting with the COSASE which is conducting an investigation into the Bank of Uganda for the irregular closure of seven commercial banks.

Led by Ahmed Nsubuga and Haruna Sebagala the shareholders have told MPs on the committee that they are entilted to 171bn shs as a residual claim following the liquidation of assets and properties of the bank which they say were fraudulenlty disposed off by the bank of Uganda.

The group laid out a detailed report and schedule of assets and liabilities that were purpotedly disposed off without mainataining any records or accounatbility of assets.

Among these was the sale of Greenland Bank Tanzania which they valued at 38bn shs, the sale of shares in westmont UCB valued at 10.45m dollars, wheat grain valued at 11m dollars among a host of other shares in various businesses.

Nsubuga told MPs that there were no account orders for sale of properties and the liquidation process was characterised by outright undervaluation of assets, use of unlicensed valuers and court bailiffs, creation of fake customer accounts and impunity in the disregard of court orders following several claims filed against the central bank.

Nsubuga quoted the auditor general's forensic audit report into the BOU in which he noted that there was no reliable and authentic asset movement schedule between April 1999 and today.

He has called for proper accountability of the entire period that Greenland Bank has been in Liquidation.