Bank of Uganda (BoU) has halted the implementation of the Organizational Structural Review process after some of them petitioned President Museveni that it was unfair and was riddled with corruption.
In a statement, BoU said implementing the new structure, which was slated to start on August 1, 2023, has been paused to allow the Board of Directors to review and address some key issues raised by the staff.
“In the interim, implementing the new structure has been paused to allow the Board of Directors to review and address some key issues raised in relation to the implementation processes before proceeding further,” BoU stated.
This comes after staff aggrieved by the restructuring petitioned the President, claiming that it targeted those loyal to late Governor Emmanuel-Tumusiime Mutebile while rewarding those loyal to current Deputy Governor Dr. Michael Atingi-Ego.
However, the Central Bank has defended the new structure, saying it was being implemented following a review by a consultant, KPMG and that it had even been suggested by the deceased governor.
“The structural review process involved a consultative approach that began in June 2022 when an external consultant was engaged through a public procurement process. The consultant conducted an organizational structural re-engineering exercise, resulting in proposals for a new structure,” they said on Monday, 07 August 2023.
“In February 2023, the Board of Directors received and approved the consultant’s report. They subsequently instructed management to implement the new structure,” BoU added.
BoU also said the Organizational Structural Review process is aimed at reviewing and aligning its organizational structure to facilitate the delivery of its new strategic plan for 2022 to 2027.
“BoU acknowledges that implementing comprehensive structural changes to achieve ambitious goals may present challenges in structural adjustments and their impact on individual staff. To address these concerns, management put in place mechanisms to formally receive and consider both structural and individual issues, reviewing them on their merits and making appropriate recommendations. This ongoing process is expected to be concluded by December 2023,” they said.
They added that they are confident that the efforts mentioned above will yield the desired results and build upon its track record of technical competence and resilience.
“Despite a challenging global environment, the Bank has successfully achieved inflation levels below the 5 percent target, maintained exchange rate stability, and ensured a sound and stable financial sector with sufficient buffers to withstand shocks,” they added.