1. A confidential report of the Presidential Tripartite Committee, authored February this year, has detailed how the Bank of Uganda (BoU) Governor, Emmanuel Tumusiime-Mutebile, personally recruited five senior staff without subjecting them to any interviews as required by law.

The staff who were externally recruited by Tummusiime-Mutebile are; Dr. Twinemanzi Tumubweinee (Executive Director Supervision), Mr. Valentine Ojangole ( Director Banking), Mr Edward Mugerwa (Director IT Operations Department), Ms. Kande Sabiiti (Procurement Assurance Manager/Director) and Dr. Natamba Bazinzi (Assistant Director Currency Administration in Currency Department).

The findings are as a result of investigation of allegations that Tumusiime-Mutebile recruited and promoted staff on February 7, 2018 without following the bank’s procedures as well as the Constitution of Uganda. The allegations were made by some of BoU senior staff.

The confidential report was authored by the committee appointed by President Yoweri Museveni to investigate the allegations against Tumusiime-Mutebile, following a public spat between him and Justice Irene Mulyagonja, the Inspector General of Government (IGG) who had intervened after former Executive Director of Supervision, Justine Bagyenda, petitioned upon being sacked by Tumusiime-Mutebile without giving any clear reasons as he published a memo on February 7, 2018.

The committee members that authored the report include; Abdu Katuntu (MP) and Chairperson, Lady Justice Irene Mulyagonja Kakooza, Elijah Okupa (MP), Michael Tusiime (MP), David Makumbi (IG Staff), Justus Kareebi (IG Staff) and Sarah Birungi (IG Staff) and committee secretary

The committee has documented how Tumusiime-Mutebile recruited and promoted the affected staff. However, for now, Eagle Online brings you details of how the governor brought external staff into BoU, causing discontent and uproar among the staff of Uganda’s regulator of the banking industry:

Dr. Twinemanzi Tumubweine

According to the report, on May 31, 2018, Tumubweinee informed the committee that he had been ‘head-hunted’ and requested by the Governor to express interest in the job. He claimed that his interaction with the Governor started in 2017 during the activities of the Financial Markets Development Committee of the Bank of Uganda. He explained that he attended the said committee as a stakeholder representative for the Uganda Communications Commission where he was previously employed. He also stated that he had authored a PhD dissertation under the title “Interest Spread and Emergency Setting Behaviour of Commercial Banks: Evidence from Uganda” in 2008 and that the Governor had asked him about it. As a result, Tumubweinee wrote to the Governor of Bank of Uganda on October 2, 2017 and expressing specific interest in joining the Banking Supervision Directorate of the Bank of Uganda.

The Governor subsequently wrote back to Tumubweinee on February 9, 2018 and offered him appointment as an Executive Director in charge of Supervision which appointment Tumubweinee accepted on February 14, 2018. Prior to this Tumubweinee had written another letter to the Governor on February 12, 2018 and requested that his employment terms be changed to permanent and pensionable which request the Governor accepted on February 22, 2018 Tumubweinee claimed that he requested for permanent and pensionable terms based upon his right to negotiate his terms and alluded to having received legal guidance on the matter.

Mr. Valentine Ojangole

On May 31, 2018 in an interview, Mr. Ojangole informed the committee that he was previously a member of staff at BoU but had left in 2007 to join private sector banking. He claimed that he had been encouraged by former colleagues to apply to rejoin Bank of Uganda and that as a result he had submitted an unsolicited application to rejoin the Bank of Uganda.

According to records derived from Ojangole’s personal file, he submitted an application for re-employment to the Governor dated September 6, 2017. This resulted in the Governor writing to offer an appointment on February 9, 2018 which offer Ojangole accepted on the same day with a request to be appointed on permanent and pensionable terms as a former staff. On February 22, 2018 the Governor wrote back to Ojangole and accepted his request for appointment on permanent and pensionable terms.

Mr Edward Mugerwa

May 31, 2018, Mr. Edward Mugerwa informed the Committee that he had submitted an unsolicited application for a position at BoU in 2017 having previously worked extensively in the telecom industry in the private sector. He claimed that he had submitted a CV to Bank of Uganda over a year earlier. According to records on Mugerwa’s personal file, he officially applied for a position at the Bank as Director IT Operations on February 3, 2018.

In his statement to the committee Mugerwa claimed that the first time he had heard back from the bank in light of his application of 2017 was by way of a phone call on a Saturday around February 6 or 7, 2018’. According to the report, he claimed that it was a lady who called him from the Human Resource Department but he could not recall her name. He further claimed that he was requested to submit another expression of interest because whereas his CV was still available the previous application he had submitted could not be traced.

Tumusiime-Mutebile subsequently wrote to Mugerwa on February 9, 2018 and offered him an appointment to the position for which he had applied. Mugerwa accepted the offer on February 12, 2018. However, he also requested to be appointed on permanent terms which request was approved by the Governor on February 22, 2018. Mugerwa informed the committee that his request for his terms to be varied was because he ‘knew that the bank has other terms of employment, that was permanent and pensionable’.

Ms. Kande Sabiiti

On May 13, 2018, Ms. Kande Sabiiti informed the committee that she had been taken on at BoU as a Procurement Assurance Manager having previously served as the Public Procurements and Disposal of Public Assets Authority (PPDA). She explained that during the course of her duties at PPDA she had noted a number of issues related to the procurement and disposal function at the bank which prompted her to write to the bank to request for ‘an opportunity to serve’. She stated that her application had been submitted sometime in 2017.

According to records available on Ms Sabiiti’s personal file, she wrote to the Governor on August 13, 2017 and applied for a procurement job opportunity at the Bank. On February 9, 2018, the Governor wrote back to Ms. Sabiiti and offered her an appointment as Procurement Assurance Manager, which appointment Ms. Sabiiti accepted on February 12, 2018 while also requesting for revision of her terms of employment from contract to permanent and pensionable. The Governor subsequently accepted the request for review of the terms on February, 22 2018.

With regard to the request to shift to permanent and pensionable terms, Ms. Sabiiti claimed that she had accessed the Human Resource procedures from which she had noted that she qualified for permanent and pensionable terms. Hence her request for her terms to be changed. She could not readily recall when she had looked at the Human Resource procedures.

Dr. Natamba Bazinzi

On May 31, 2018 the Committee met Dr. Natamba Bazinzi who had also been externally recruited by virtue of the Governor’s memo of February 7, 2018. When he was queried as to how he came to be appointed at the Bank, Dr. Bazinzi stated that around October 2017, he felt he needed to explore opportunities for growth in experience especially in the public sector and that as result he gave his CV to Bank of Uganda. He stated that at the time he gave in his CV he recalled that they gave out information related to financial inclusion. He then submitted his CV and expressed interest to provide ‘research knowledge consultancy’ related to financial inclusion.

Bazinzi emphasized that he had submitted his CV without the benefit of inside information. According to information available on Bazinzi’s personal file he wrote to the Governor on October 18, 2017 and applied for a position in the Currency Department at the bank. However, contrary to his statement to the committee there was no discernable expression of interest to provide consultancy services but rather a specific application for a position in a specific department of the bank.

When queried about why he was specifically interested in the Currency Department, Dr. Bazinzi claimed that he acquired a specific interest based on what he was reading in newspapers. He stated, “When you read what is published in newspapers, sometimes it is up to you as a reader to draw your own conclusions. In my conclusion, therefore, I said since financial inclusion is related to issues of having people open accounts in banks, then possibly this can be an issue of the currency department.”

“In all the cases for the externally recruited staff there was no indication of acknowledgment of receipt of any of their applications by the Bank. As such it was impossible to determine when and how exactly the applications were submitted to the Bank,” the report of the committee says.

Committee’ conclusion

According to the report, the Committee recommended that the ratification of the appointment of externally recruited persons into BoU should be handled by the Board of Directors as per their mandate under the Administration Manual and the Constitution. However, due to the prevailing situation characterized by suspicion and mistrust in the bank and in the interests of ensuring that any decision in this regard is free of any perception of bias, the committee also recommended that the ratification by the Board should involve an independent professional firm that is familiar with recruitment processes. “This firm would be expected to verify the qualifications and competences of the externally recruited persons against the official bank requirements and present a report to the Board. This firm could be sourced through the Ministry of Finance, Planning and Economic Development to ensure freedom from perception of bias and guard the integrity of the process,” it stated.

Click on the link below to read full report

BOU Tripartite Final

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As the Bank of Uganda (BoU) currency consignment scandal continues and some officials already charged, its deputy governor, Dr. Louis Kasekende, insist there was no extra currency printed in Germany other than that approved by his boss Prof. Emmanuel Tumusiime-Mutebile.

Dr. Kasekende made the remarks on Thursday in Masaka during the At the Bank of Uganda Townhall Meeting held receive feedback from the public and discuss ways of improving the services that the institution renders to the country.

“…many of you have asked for clarification from the Bank of Uganda on the ongoing investigations by the Uganda Police and sister investigative agencies regarding the recent shipment of Uganda currency consignment. Unfortunately, the matter has progressed to court and any detailed discussion on the specific merits of the issue might be construed to be contempt of court processes…Let me also reiterate Governor Mutebile’s message, that there was no extra currency printed outside the amounts that he approved through the requisite processes,” he said.

He said currency printing like many of the work processes in BoU, is, “subject to very rigorous processes with inbuilt controls for checks and balances.” He said deliberate checks at various levels including the Currency Policy Committee headed by Mutebile himself, coupled with a strong and independent audit function, have overtime been robust enough to maintain the integrity of our currency operations.

He re-affirmed BoU’ commitment to cooperate with all arms of the state to fully investigate any breach of its operating procedures, either by the staff or procured partners. “The outcomes of these investigations shall be used to re-assess and further buttress our processes whose unquestionable integrity is central to the successful pursuit of BOU’s core mandate.

Investigators are trying to establish whether the extra money was printed without the knowledge of the top leaders of the bank. Mutebile days ago said BoU had 20 pallets of its consignment on the chartered plane from France even though it had 25 pallets in total. Investigators want to know the whereabouts of the extra 5 pallets and what was contained in there. It is alleged about Shgs190 billion was illegally printed and is hidden somewhere in the country.

On Friday, BoU Executive Director Operations Charles Malinga Akol was charged and released from the Anti-Corruption Court in Kololo on a cash bail of Shs40 million as part of the inquiry into the currency consignment scandal. Francis Kakeeto, a branch manager at Mbale and Fred Wanyama from the same branch were charged with abuse of office and in alternative corruption which they have both denied before magistrate Herbert Asiimwe. They were also released on Cash Bail of Shs 30 million and Shs25 million respectively.

Prosecution alleged that on April 26, 2019 between France, Belgium and Entebbe airport, the duo while on assignment by their employer to carry out a pre-shipment inspection of printed materials in France, in abuse of the authority to offices did an arbitrary act prejudicial to the interest of their employer and allowed the inclusion of unauthorised case on a cargo plane fully chartered by BoU.

And in the alternative, it’s alleged that they failed to refute and report the inclusion of unauthorised cargo on a plane fully chartered by BoU.

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