President Yoweri Museveni set up the Presidential Tripartite Committee to investigate Bank of Uganda (BoU) after the Governor , Professor Emmanuel Tumusiime-Mutebile issued an internal memo that affected several staff leading to a standoff with the Inspector General of Government (IGG) Justice Irene Mulyagonja.
On February 7, 2018, the Governor issued an internal memo in which he communicated a number of staff transfers and appointments. By way of the said memo, he communicated appointments of five staff from outside the bank to various juicy positions in the bank of Uganda.
After the Governor made these reshuffles a number of complaints were filed with the Inspector General of Government and the parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE).
The Allegations that were picked by the Presidential Tripartite Committee were eight in number and they are below:
The complainants wondered how six new staff were appointed from outside the bank without interviews. They include Dr. Twinemanzi Tumubweine, Executive Director Supervision, Valentine Ojangole as Director Banking, Edward Mugerwa as Director IT Operations Department, Ms Kande Sabiiti as Procurement Assurance Manager (Director), Dr. Natamba Bazinzi as Assistant Director Currency Administration in currency Department.
The newly appointed staff were granted permanent and pensionable terms contrary to probationary policy.
Two new externally recruited staff lacked the minimum academic requirements for entering bank of Uganda, they are Twinemanzi Tumubweine and Kande Sabiiti.
Governor Emmanuel Tumusiime- Mutebile created five new positions that did not exist on approved structure of Bank of Uganda and some lacked job descriptions.
The governor promoted nine staff members to assistant director level without conducting interviews.
Two new Directors have been appointed to departments with substantive directors creating confusion as to what happens to existing directors.
One deputy director was demoted to assistant director without justification, Ms Angela Kasirye.
The appointment of Dr. Tumubweine was premised on nepotism, influence peddling and conflict of interest.
After the complainants were filed the Inspector General of Government wrote on February 23, 2018 to the Governor and requested him to respond.
On March 6, 2018, governor Mutebile responded to the IGG’s letter saying he followed the law.
“The appointment of new staff from outside Bank of Uganda was done in accordance with the Bank of Uganda Act and internal recruitment policies of the bank. The staff in question were recruited through headhunting subject to headhunting policy of the Bank as approved by the Human resource and remuneration committee of the board of Directors on May 11, 2016”, Mutebile wrote.
Mutebile quoted section 28(4) of the Bank of Uganda Act and also in line with the authority granted to him by the board of directors on May 30, 2012.
“The authority granted by the board permits me to take decisions on behalf of the board in the absence of a fully constituted board whose term had expired on the November 12, 2017”.
Mutebile further defended the creation of new staff positions in the Bank of Uganda structure as being consistent with section 4.2.2 of the human resource policy of the bank. He explained that he approved the creation of five new positions to improve efficiency and enhance internal controls in the bank.
He said the promotion of nine staff without subjecting them to interviews on the grounds that a previous promotions process had been faulted by internal audit.
“There was no need for the positions to be filled as quickly as possible to allow bank operations to proceed efficiently”, Mutebile wrote.
The Governor denied accusations of nepotism and influence peddling says Tumubweine and Kande Sabiiti were appointed on ground that they possessed specialized skills which under exceptional circumstances can be approved by the Governor or the board. He said they were sourced from specialized institutions.
The IGG was not convinced with the Governor’s explanations, on March 12, 2018, the inspectorate wanted additional information to support his decision. Lady Justice further directed that the decision of the Governor taken on February 7, 2018 should not be ratified by the board of Directors pending conclusion of investigations.
The Governor wrote bank asserting the independence of Bank of Uganda and the IGG also asserted the as not being applicable to the situation in question. The media was blamed for escalating the fight that had a potential to hurt the economy.
Due to the increasing press coverage of the Bank of Uganda, President Museveni deemed it necessary to establish a tripartite committee that would bring together the Parliament of Uganda, the Inspector General of Government and Bank of Uganda to study the allegations and report back to him.
The President appointed Hon Abdu Katuntu(MP) Chairperson , Hon Anita Among (Hon) member, Hon Micheal Tumusiime(MP) member, Hon Elijah Okupa (MP) Member , Lady Justice Irene Mulyagonja Kakooza (IGG) Member, David Makumbi(IG Staff) member, Justus Kareebi(IG Staff) member, Sarah Birungi(IG Staff) Committee Secretary , Judy Obitre-Gama (BOU Board) member and Keith Muhakanizi(BOU Board) member.