MP to draft private bill to reduce powers of BoU governor

Igara East Legislator Michael Mawanda is set to move a motion on the floor of Parliament seeking leave of Parliament to enact a private member's bill that will cause changes in the governance of the central bank.

According to Mawanda the bill that will be entitled “Bank of Uganda Amendment bill 2019” seeks to solve the ongoing stalemate at bank of Uganda that is likely to affect both the banking sector and the country’s economy.

The Abdu Katuntu led parliamentary committee on Commissions, Statutory Authorities and State Enterprises that investigated Bank of Uganda in the closure of the seven defunct commercial banks made sweeping recommendations aimed at reforming the bank.

Five months after the report was tabled and debated no changes at the scandal riddled bank have been made.

Some of the recommendations needed an amendment in the constitution but unfortunately until now government has not moved any step in amending the necessary law as advised by Parliament.

But Mawanda believes his bill will change all that and restore the much needed order at the central bank.

According to Mawanda, the bill will seek to reduce the powers of the governor Bank of Uganda by separating his roles as a governor from that of chairperson of the board of the bank like is the current situation..

In other amendments he wants parliament to be the responsible body in appropriating resources or approving the Bank of Uganda financial year budget.

Mawanda said the amendments will outline procedures under which a commercial bank can be closed or sold to another bank.