International Monetary Fund has reportedly authored a report on the current situation at Bank of Uganda and called on the country’s leadership to carry on immediate reforms at the central bank.
According to sources within BoU, the report further says none of the current top managers including former Deputy Governor, Louis Kasekende who is busy scheming on how to be brought back as governor should be considered for redeployment at BoU.
“It is true, there is a report and apart from a copy that was given to the president, the governor has a copy and yet to make it official at the board level. However, those close to the governor say it recommends for a complete overhaul of the current establishment including the governor himself”.
The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership.
The IMF’s primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund’s mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.
BoU lately has had challenges over its governance and management systems after it emerged that the bank has no developed template it bases on to supervise commercial banks.
The IMF report which was released late last year is the latest international report asking the Ugandan leadership to revamp BoU of the current leadership.
Parliament last year recommended that contracts of the governor Emmanuel Tumusiime Mutebile and his deputy, Dr Louis Kasekende should not be renewed, the report of the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has recommended.
The report, which was tabled in Parliament last year by Abdu Katuntu, the then chair, accused the top management of the central bank of mismanaging the sale of seven commercial banks, including that of Crane Bank.
Other officials that COSASE wanted to be held culpable are Benedict Ssekabira, the director of Financial Markets Development Coordination (FMDC), Justine Bagyenda, the former executive director for Commercial Banks supervision; and Margaret Kasule, the legal counsel.
The report, signed by 27 of the 35 MPs on the committee, noted that the Bank of Uganda board needs to be strengthened in the way it plays its supervisory role.
“The board did not adequately supervise management in the process of liquidating the financial institutions,” reads part of the report, adding:
“Good corporate governance principles would require that the position of chairperson and vice chairperson of the board is separated from the position of Chief Executive (Governor) and his Deputy.”
“It is therefore the recommendation of this committee that article 161 (4) (of the Constitution) be reviewed to separate the offices of the leadership of the board and top management of BoU,” noted the report.
The committee report was later debated and adopted by the committee of the whole house which further wrote to the appointing authority noting him about the legislature’s stand on the matter.