Don’t cause economic crisis over Mutebile-Museveni warns IGG as AG confirms investigation into BoU over Crane Bank

President Yoweri Museveni has reportedly warned the Inspector General of Government, Justice Irene Mulyagonya over her probe into the actions of BoU governor.
In a stormy meeting before the Easter holiday, Mr Museveni is reported to have cautioned Ms Mulyagonya to go slow on Governor Emmanuel Tumusiime Mutebile or the country risked an economic crisis as a result of the investigations into actions of the BoU top executive of making changes at the central bank.
“Please, don’t cause me trouble with the economy. However, much you hate Mutebile, stop these investigations and this shouldn’t be a personal issue between Mutebile and you.” Mr Museveni is quoted by sources at the meeting.
According to sources, the president is reported to have suggested no more bickering shouldn’t be displayed in the public between the two sides because of the potentiality of hurting the economy and could easily lead the shilling to further slide against other currencies.
Meanwhile Auditor General has kicked started forensic audit into the activities of BoU and most importantly how Crane Bank owned by Kampala tycoon Sudhir Ruparelia and a host of other directors. The AG John Muwanga is reportedly interested in how a decision was reached by BoU to give Crane Bank to DFCU bank at a mere Shs200 billion which was supposed to be for Liabilities. Crane Bank was given away without name the price.
The forensic audit into BoU activities was sanctioned by Parliament and is supposed to guide the August House on the next cause on the debate on BoU.

Recently, the IGG faced with the conundrum as to whether the Bank of Uganda Governor acted within his powers to make administrative changes at the Central Bank, one of which involved the retirement of Justine Bagyenda, the erstwhile Director of Bank Supervision. Ms. Bagyenda has since sought the protection of the IGG, who in turn has reportedly blocked the changes made by Mutebile.
‘This is to direct the Board of Directors of BoU not to ratify any actions or decisions taken by the Governor on or around February 7, 2018 in relation to the impugned appointments and transfers until such time as the investigation by the Inspectorate has been concluded or until this office directs otherwise’, the IGG’s March 12 letter states in part.
But in his five-page strongly-worded letter which he copied to among others President Yoweri Museveni, Speaker Rebecca Kadaga and Prime Minister Dr. Ruhakana Rugunda and finance minister Matia Kasaija, Prof. Mutebile draws the attention of the IGG to Article 162 (2) of the Constitution that guarantees the independence of the BoU from direction of any authority in the country. Others copied in include the Attorney General, the Auditor General and members of the BoU Board of Directors.
‘In performing its functions, the Bank of Uganda shall conform to this Constitution but shall not be subject to the direction or control of any person or authority,’ the Article states in part.