The Deputy Governor of Bank of Uganda, Dr Louis Kasekende has castigated commercial banks, saying they have deviated from their core role of facilitating financial intermediation to focusing mainly on making profits.
“Finance is a major pillar of nation building and commercial banks are supposed to facilitate financial intermediations. But because many are making a lot of profits from investing in treasury bills, they have completely ignored their core role. Banks are supposed to mediate between those who have money,” Dr. Kasekende said in his keynote address at the ongoing 22nd Annual Seminar of Certified Accountants of Uganda (ICPAU), taking place at Imperial Resort Beach Hotel, Entebbe.
However, Dr. Kasekende, who was chief guest at the function that was attended by over 1000 CPA delegates, said he is not totally against investment in treasury bills by commercial banks.
“I am not for a total ban of banks from investing in treasury bills for they need liquidity and that can only be achieved through such investments,” he said, noting that: “Investment in treasury bills is main earner of most of these banks,” he clarified when one of the delegates suggested that banks should be discouraged from such investments.
He also used the same opportunity to applaud ICPAU for its contribution towards the growth of the banking sector in the country, saying that the Bank of Uganda requires one to have an accounting qualification to be considered a director of a commercial bank.
Also present at the event, which is also celebrating the institute’s 25 years of existence were former presidents George Egaddu, David Opio Okello, professionals who went through ICPAU and leaders of other professions.
Among these were former Leader of Opposition in Parliament, Nandala Mafabi, the Managing Director of Umeme Ltd Selestino Babungi, and his deputy Sam Zzimbe. Also in attendance was the President of the Uganda Law Society, Francis Gimara, the Secretary of Pharmaceutical Society Samuel Opio and Eng. Dorothy Okello, the President of the Uganda Institute of Professional Engineers Association (UIPE) among others.
In his brief speech Nandala Mafabi called for amendments to the Accountants Act in a bid to strengthen accountancy as a profession.
Highlighting the achievements of the institute, ICPAU President Protazi Begumisa commended his predecessors for the foundation they laid for the institute.
“The Institute has grown as a member based organisation, with well-built structures over the last 25 years,” he said, adding: “Uganda represents the East African Community on the Pan African Federation of Accountants Board,” Mr. Begumisa said.
He also said that ICPAU has also been able to sign mutual recognition agreements with all East African member countries, noting that “a CPA in Uganda is a CPA in Rwanda, Kenya, Tanzania and Burundi.”
