After Financial Intelligence Authority Executive Director Sydney Asubo coming out last week to say that money laundering investigations take time, the spotlight on the delay of investigating former Bank of Uganda Executive Director (Supervision) Justine Bagyenda for alleged financial crimes has now shifted to board Chairman Leo Kibirango.
Though Asubo said investigations take time after an activists group Youth Power Research Uganda wrote to Prime Minister Ruhakana Rugunda over FIA’s cold feet in investigating the matter, there is more than meets the eye in the delay as a source says FIA’s Kibirango is conflicted, which has stalled the investigations.
A source says Kibirango is supposed to have exercised his powers to relieve Bagyenda of her duties as a member of the FIA board to pave way for investigations which hasn’t been the case.
“Under normal circumstances, Bagyenda would have recused herself from the board as the authority is investigating her,” said a board member.
“What we are seeing is Kibirango dragging his feet on something that should have been yesterday,” the member added.
Kibirango just like Bagyenda worked at BoU. He served as a Deputy Governor in 1980 and was appointed Governor in November 1981.
Background
In March this year, Bagyenda’s account details indicating she had over Shs19 billion in local banks leaked, prompting Barclays Bank and Diamond Trust Bank to apologise for the breach of customer confidence.
Whistle blowers used these account details to accuse Bagyenda of money laundering in a bid to conceal her wealth that was not commensurate with her earnings and forwarded the matter to FIA for investigations.
Meanwhile, the Auditor General is undertaking a probe in Bank of Uganda over the closure and sale of several commercial banks, including Crane Bank.
Bank of Uganda’s Deputy Governor Louis Kasekende had tried to block the audit citing sub judice as the Crane Bank matters are before court, but Parliament that had ordered for the audit through Speaker Rebecca Kadaga stuck to their guns.
MPs who called for the audit also want it to extend to individuals and their roles. Budadiri West MP Nandala Mafabi said “mafias in BoU must be exposed.”
One of the principal personalities the MPs want the audit to look into is Bagyenda who was in charge of commercial banks supervision.
