Igara East Legislator Michael Maranga Mawanda has finalized enacting his long awaited private members bill dubbed the Bank of Uganda Amendment Bill 2019.
According to Mawanda, the Constitutional amendment bill is intended at separating the fusion between the Bank of Uganda Management from the board of directors especially at this critical time when a new Deputy governor has been appointed.
In 2019, Parliament granted leave to Mawanda to introduce the Bank of Uganda Amendment bill 2019.
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.
The proposed amendments come in the wake of scandals that rocked the central bank leading to a probe by the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) over the sale of seven commercial banks.