Bank of Uganda moves to pay off former creditors of defunct Greenland Bank

Bank of Uganda (BoU) has invited 85 creditors of Greenland Bank Ltd to submit their documents for verification as the central bank winds up liquidation of the bank.

Greenland Bank was incorporated on August 3, 1990 and operated until April 1, 1999, when the central bank placed it under liquidation.

And in a statement issued on Monday, 27 November 2023, Bank of Uganda said as it completes the liquidation process of Greenland Bank Ltd, all its creditors must submit details such as bank account numbers, copy of national ID and valid telephone numbers and copies of registration certificates of companies within 30 days.

“The legal representatives of any deceased creditors should submit documents,” BoU added.

The Information should be submitted the headquarters in Kampala or its branches in Mbarara, Gulu, Lira, Mbale, Kabale, Arua, Fort Portal and Jinja.

BoU closed Greenland Bank in 1999 and put it under liquidation, accusing its proprietor, the late Sulaiman Kiggundu, of violating banking regulations.

But according to the 2019 report by Parliament’s committee on Commissions, Statutory Authorities and State Enterprises (COSASE), BoU did not follow the right procedures in closure of the bank and six others, which are; Cooperative Bank, Global Trust Bank (GTB), International Credit Bank Ltd (closed September 1998), and Cooperative Bank, closed in May 1999.

The Auditor General found out some of the closed banks had assets worth Shs117b in cash, loans, property, equity investment, amounts due from related parties and balances from other banks at the time of closure but that these were not accounted for by the central bank.