With Parliament scheduled to debate Parliament’s committee on Statutory and State enterprises (COSASE)findings and recommendations on Tuesday next week, a section members of parliament have expressed disappointment ,saying the implicated Bank of Uganda Officials need to be named and fired from their positions instead of not renewing their contracts as recommended. The mps include; Winnie […]
With Parliament scheduled to debate Parliament’s committee on Statutory and State enterprises (COSASE)findings and recommendations on Tuesday next week, a section members of parliament have expressed disappointment ,saying the implicated Bank of Uganda Officials need to be named and fired from their positions instead of not renewing their contracts as recommended.
The mps include; Winnie Kiizza the former Leader of Opposition in parliament, Buhweju MP Francis Mwijukye, Ngora County’s David Abala and Buikwe south MP David Mutebi.
In the COSASE report to parliament tabled by the committee Chairperson Abdu Katuntu, the Central Bank Board’s failure to supervise liquidation of the defunct banks is demonstrated in the fact that to date, they have never demanded for final reports on the liquidated financial institutions.
The Central Bank Board’s powers are further stipulated under Section 10 of the BoU Act which provides for the duties of the Board as being responsible for the general management of the affairs of the bank, ensuring the functioning of the bank, implementation of its functions and formulation of policies.
Dr William Kalema, one of the Central Bank Board Members while appearing before COSASE early this month revealed that they had very limited time to consult widely before the closure of commercial banks. Kalema added that the board was not involved in the mechanics of closing the bank.
Meanwhile, COSASE has also called for the review of Article 161 (4) of the Constitution to separate the offices of the leadership of the Central Bank Board and top management.
Article 161 (4) currently provides that the Governor and Deputy Governor shall be Chairperson and Vice Chairperson of the board respectively.
However, in its report, COSASE says that good Cooperate governance principles would require that the position of Chairperson and Vice Chairperson of the Board is separated from the position of Chief Executive Officer and his Deputy.
The COSASE inquiry into the conduct of Bank of Uganda and it’s officials in the closure of seven banks, with some ending up in massive controversy that lasted for the last three months has brought into been focus the mismanagement of closed banks by BoU after the Auditor General Mr John Muwanga issued a stinging criticism of the central bank in a special audit that cited massive flaws in the closure of Teefe Bank (1993), International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and the sale of Crane Bank Ltd (CBL) to dfcu (2016).
