MPs turn down BoU's capital injection request of Shs 484 billion
MPs on the Finance Committee have declined to approve Bank of Uganda's request for Shs 484 billion for recapitalisation purposes.
Sources said the MPs led by the committee chairperson, Henry Musasizi did not see any justification for the money
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“Whereas the bank needs to be capitalised from time to time to maintain a sound capital base, the Committee found an increase from Shs100bn to Shs484.21bn representing an increment of 384% in a period of 2 years unjustified. The Committee noted the need for gradual and consistent increments in budget allocations for capitalisation of the bank,” Musasizi said.
We reported early this month that government had requested for Shs 484 to be injected into the central bank to recapitalise it.
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Officials from the ministry of Finance led by the Accountant General, Lawrence Ssemakula had told the MPs that the money is needed to cover for deficits and losses accumulated since 2013.
Some committee members said no more money should be injected into the central bank until there is a thorough investigation into the cause of losses and deficits at BoU.
