Parliament yesterday granted leave to Igara East County Member of Parliament, Michael Mawanda to draft a private member’s bill that intends to restructure the operations of Bank of Uganda and trim, significantly, the powers of the governor.
According to the Bank of Uganda Act, the central bank governor also chairs the board of directors and is deputised by his deputy.
Mawanda said this arrangement is not feasible in ensuring checks and balances at the central bank because in case there is a problem in the management of the Central bank, one can’t run to the board since it is chaired by the same person who heads the bank.
He said the bill will ensure that the governor and board report to an oversight body.
Mawanda has up to 45 days to report back to the House.
The bill comes months after an investigation by the Committee on Commissions, Statutory Authorities and State Enterprise (COSASE) unearthed irregularities in the sale of several commercial banks by the central bank.
The Abdu Katuntu led committee recommended a complete overhaul of the bank and separation between the bank management and board.
“In terms of the functions of the Board, the committee observed that the board didn’t adequately supervise management in the process of liquidating the financial institutions,” read the committee findings.