Drama as COSASE hears from Cooperative Bank

By Moses Kyeyune.

Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises has this morning been treated to dramatic developments about the incorporation of Cooperative Bank limited.

The MP’s have discovered that two separate institutions were licences to operate under the same name in Tue same sector, with the initial license having been issued in 1964 while in 1997, a set of new proprietors were issued a trade name Cooperative Bank, in the banking sector.

During the interface this morning, MP’s have raised concerned as to which bank was closed by the Central Bank.

The committee has also learnt that despite incorporating a new trade name in 1997, Cooperative Bank limited lost its existence in 1999 due yo liquidity shortfalls with many unanswered questions.

COSASE is probing the closure of seven commercial banks including Teffe Trust Bank that was closed in 1993 over insolvency, International Credit Bank Ltd (1998) over poor liquidity and insolvency and Greenland Bank closed in 1999 because of insolvency and violation of Financial Institutions Statute.

Other banks include the Cooperative Bank closed in 1999 because of poor performance and non-compliance with regulatory capital adequacy requirements; the National Bank of Commerce closed in 2012 due to under capitalization and Global Trust Bank closed in 2014.