Kampala, Uganda | GODFREY SSALI | The Deputy Speaker Jacob Oulanyah has halted a proposed parliament investigation of Bank of Uganda (BOU) in relation to circumstances leading to the closure of Crane Bank. He cited sub judice.
Oulanyah made his ruling Tuesday afternoon after Budadiri East MP Nathan Nandala Mafabi presented a motion urging parliament to set up a select committee, after arguing that the central bank had failed to supervise the operations of Crane Bank.
The motion has been seconded by Igara West MP Raphael Magyezi who added that parliament needs to investigate whether BOU breached sections of the Public Finance Act and Financial Institutions’ Act.
Oulanyah based his ruling on the rule of sub judice that limits debates on a matter before courts of law.
“I rule that the proposed parliamentary investigation are sub judice but let us keep monitoring the progress so that where necessary we review the matter,” said Oulanya.
He therefore barred any MP or committee including the committee on Commissions, Statutory Authorities and State Enterprises from investigating Bank of Uganda.
Oulanyah also notified the house of a letter written last Friday to his office by Prof. Emmanuel Tumusiime Mutebile over three court cases regarding the matter.
He added that he also received a letter by MMAKS law firm that is representing Crane Bank reminding him about the rule of Sub judice
“I need to examine whether the investigation by parliament will deal with the matters that are before court for determination,” said Oulanya.
The court cases are; Case file HCCS No. 493 of 2017 (Crane Bank Limited (In Receivership versus Sudhir Ruparellia and Meera Investments Limited) and another case where a Ugandan named Dennis Nsereko filed a suit against Bank of Uganda before High Court’s Civil Division, accusing it of failing to play its supervision role in accordance with Part Viii of the of the Financial Institutions Act.
The third case is one where the liquidated National Bank of Commerce (NBC) and former owner Amos Nzeyi sued Bank of Uganda, Crane Bank and its former owner Mr Ruparelia and a Kenyan tycoon Rasiklal Chhotalal Kantaria over BOU’s takeover of NBC and the subsequent sale of its assets to Crane Bank within six hours after the seizure on September 27, 2012 which they say was illegal and in bad faith.