MP drafts bill to separate BoU management from board of directors

Igara East Member of Parliament Michael Mawanda wants parliament to amend the Bank Of Uganda Act and separate its board of directors from the management.

Mawanda said that the current Bank of Uganda Act creates space for abuse of powers and a conflict of interest since the board of directors is directly involved in management.

Bank of Uganda Governor Tumusiime Mutebile is also the chairperson board of directors according to the current Act. Now Mawanda says that creates conflict of interest and he is now drafting a Bill that proposes an amendment in the Bank of Uganda Act.

According to Mawanda, the amendment that separates directors from management will solve these irregularities that have been happening in Bank of Uganda.

"We hope it (the amendment) can solve all these impasses that have been happening in the bank. The board of Governors is reliant on each other and this brings out issues of accountability," Mawanda said in part.

Mawanda said that the deputy speaker Jacob Oulanyah has already asked him to submit his amendment Bill so that he (Oulanyah) can have a look at the draft.

He says that he has submitted the draft and only waiting for feedback from the Oulanyah so that he goes ahead to table it.

There has been pressure on government to act on the Committee on Commissions, Statutory Authorities and State Enterprise (COSASE) report following a slew of scandals at the central bank.

Earlier this year, Bank of Uganda was embroiled in a scandal over additional pallets on a cargo plane it had chartered to transport currency which led to the intervention of COSASE to probe the bank.

On July 5th, 2019, Minister of Finance Matia Kasaija confirmed that government will soon start scrutinising the recommendations that were raised by COSASE.