Bank of Uganda: Government says it is ready to crack the whip

Several policy and leadership changes at Bank of Uganda are in the offing after the government yielded to public pressure over the reported mismanagement at the central bank.

In an interview with a local daily, the minister of Finance, Matia Kasaija confirmed that government will son start scrutinising the recommendations, which were made by the Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) chaired by Abdu Katuntu.

“We are moving, but I cannot give you the whole detail. We have received a report from Bank of Uganda showing the actions they have taken. But I cannot give you details on these actions too. The report was sent to me about three days ago,” Kasaija said.

There has been pressure on government to act on the COSASE report following a slew of scandals at the central bank.

The bank is currently embroiled in a scandal over additional pallets on a cargo plane it had chartered to transport currency.

Government's commitment comes in the wake of another report that was compiled by a committee set up by President Museveni to probe recruitment at the central bank.

The committee comprised Abdu Katuntu (MP) – Chairperson; Anita Among (MP); Michael Tusiime (MP); Elijah Okupa (MP); Lady Justice Irene Mulygonja Kakooza (IGG); David Makumbi (IG Staff); Justus Kareebi (IG Staff); Sarah Birungi (IG Staff); Judy Obitre-Gama (BOU Board) and Keith Muhakanizi (BOU Board).

The committee interviewed more than 100 people including staff of Bank of Uganda, former bank staff and board members.In the 79-page report by the committee which was compiled in February this year and seen by The Nile Post, it was observed that the governor had been given a lot of powers by the law and this needed to be rectified immediately.

"The Committee recommends the possible splitting or separation of the functions of the Governor and the Chairperson of the Board especially with regard to administrative matters. The Committee noted that the Governor’s decision of 7th February 2018 was characterised by the fact that the Governor was essentially performing both the role of Chief Executive and Chairperson of the Board. Corporate Governance best practice normally requires that the two positions are separate as the Chief Executive Officer is normally supervised by and is therefore answerable to the Board. In the instant case most of the problems caused as a result of the Governor’s decision could have been avoided if the two roles were separate with no opportunity for the Governor to function as both Board and Chief Executive Officer."