Stanbic Bank
Stanbic Bank
17.8 C
Kampala
Stanbic Bank
Stanbic Bank
Home Blog Page 1261

BoU saga: Senior staff Mutebile recruited had no required qualifications and experience

Bank of Uganda

The Bank of Uganda (BoU) Governor Prof. Emmanuel Tumusiime-Mutebile is on record now for recruiting senior staff without consulting the board or senior staff on the management team. Now an inquiry has established that most of the staff he recruited externally did not meet the required qualifications and experience.

A confidential Report of the Presidential Tripartite Committee, based on Investigation of allegations that Tumusiime-Mutebile violated BoU’s policy on recruitment has detailed the affected officials with their qualifications and whether they are suitable for the jobs they hold at BoU. Eagle Online presents the committee’ findings on the recruited senior staff as announced by the governor on February 7, 2018:

Dr. Twinemanzi Tumubweinee, Executive Director Supervision

The committee found that Dr. Twinemanzi Tumubweine holds: PhD in Economics from the University of Texas in Dallas, United States of America (December 2009), Master of Science degree in Economics from the University of Texas in Dallas, United States of America(December 2009), Master of Science Degree in Management and Administrative Sciences from the University of Texas in Dallas, United States of America (May 2004) and Bachelor of Science Degree in Statistics and Applied Economics from Makerere University in Kampala, Uganda (January 1996).

However, when Dr. Tumubweine’s academic qualifications were considered alongside the prescribed requirements stipulated by policy in the Administration Manual, it was found that his first degree was a pass degree. It therefore fell below the standard requirement of 1st Class and Upper Second Honours and also below the standard set for exceptional circumstances which is Lower Second Honours degree. “It is also pertinent to note that Dr. Twinemanzi lacked experience in commercial banking as stipulated in the job description for Executive Director Supervision. There was no mention of any working experience relevant to commercial banking in his personal records at the Bank,” the committee noted.

Mr. Valentine Ojangole, Director Banking

The committee established that was determined from Mr. Valentine Ojangole holds: personal records that his academic qualifications were as follows:

Master of Business Administration (MBA) from ESAMI – October 2009, Bachelor of Commerce (BCom) Accounting from Makerere University in Kampala, Uganda – June 2000. Ojangole’s transcript for the Bachelor’s degree revealed that he graduated with Upper Second Class Honours and therefore met the minimum requirement set in the Administration Manual for recruitment of Banking Officers.

Mr. Edward Mugerwa, Director IT Operations

The committee established that Mr. Edward Mugerwa is a holder of one degree being a Bachelor of Science (Bsc) in Electrical Engineering obtained from Makerere University in Kampala, Uganda in 2000. He passed with Upper Second Class Honours and as such fell within the minimum requirements for entering the Bank of Uganda. However with regard to the official Bank job description the committee found that that Mugerwa lacked the minimum requirement of a Masters degree in Computer Science/Engineering, Information Systems/Technology or closely related field. His personal records revealed that he only possessed a Bachelors degree.

Ms. Ruth Kande Sabiiti, Procurement Assurance Manager

When Ms. Sabiiti’s personal records were examined she was found to be a holder of one degree being a Bachelor of Arts in Social Sciences (Economics and Political Science) obtained in 1996 from Makerere University in Kampala, Uganda in 1996. It was determined from her degree transcript that she held a basic pass degree with no honours. This was clearly outside the minimum requirement of Upper Second Honours for normal recruitment and that of Lower Second Honours for recruitment under exceptional circumstances.

Dr. Natamba Bazinzi, Assistant Director Currency Administration

When Dr. Bazinzi’s personal records were examined he was found to hold the following academic qualifications: Doctor of Philosophy (Business Management – Finance) obtained from Moi University in Kenya – 2016, Master of Science (Msc) Accounting and Finance – Makerere University in Kampala, Uganda – 2010, Bachelor of Business Administration – Makerere University Kampala – 2006. Bazinzi’s academic transcript for his Bachelor’s degree showed that he graduated with Upper Second Honours and therefore met the minimum recruitment requirement for Banking Officers. However, close analysis of his working experience and the official job description for an Assistant Director Currency revealed a variation. “Whereas the job description called for at least 5 years working experience in a financial institution with at least 2 years in the management of currency operations or at least two years as Head of Section in Bank of Uganda, his personal records revealed no relevant experience in light of the position he was offered, the committee wrote of Bazinzi.

Stories Continues after ad

Police probes BoU’s Shs400b hidden in Masaka

ON THE FIRING LINE: Governor Mutebile and former deputy Louis Kasekende.

Uganda Police detectives are investigating Shs400 billion that the Bank of Uganda (BoU) officials transferred and stored in BoU Masaka Currency Centre in a room without CCTV cameras, meaning the money could be stolen without tracing it.

The huge money is said to have been transferred to Masaka on June 14, 2019, the time when investigators started probing BoU and other officials over the anomaly in the consignment of the 20 pallets packed with Uganda Shillings notes that were delivered at Entebbe International Airport by BoU chartered plane on April 26, even though, extra 5 pallets were onboard and their whereabouts is unknown.

A week ago, 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.

Meanwhile deputy governor, Dr. Louis Kasekende, insists 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. It is alleged about Shs190 billion was illegally printed and is hidden somewhere in the country.

Stories Continues after ad

Minister rolls out regional consultations on Vanilla growing and trade

The State Minister for Agriculture, Christopher Kibanzanga, has rolled up regional engagements for vanilla value chain players in Rwenzori sub-region.

The inaugural meetings and field tours are designed to further emphasize the guidelines for appropriate planting and harvesting of Vanilla to avoid reduction in profitability at farm level.

The engagements involved partners including Catholic Relief Services (CRS) which, according to Mr. Niek De Goeij, the Country Representative is supporting farming communities to improve their livelihoods and enabling farmers to meet with the right stakeholders including exporters and buyers of vanilla in such engagements.

Kibanzanga said government is committed to supporting the growth of vanilla-growing cooperatives and groups and increasing mobility of agricultural extension workers to support the sub sector.

The guidelines for vanilla were announced at the Uganda Media Center by Kibanzanga on the 21st of May 2019.

Vanilla is one of the high value crops grown in 25 Districts of Uganda, mainly in Central, Eastern and Western parts of the country and is used to add flavor to drinks, dairy products, sweet food, cosmetic products and may also be applied in pharmaceutical industries.

The Dairy sector is the largest consumer of vanilla and here, it is used in ice cream, yoghurt, chocolate and other flavored dairy products. Global consumption of vanilla ranges between 2,100MT to 2,400 MT per year over the last 10 years.

However, there is now increasing demand for all-natural and organic vanilla from major Global food companies.

In 2015 for instance, Nestle announced a major plan to go all-natural for all their products and eliminate artificial additives. This offers a major opportunity for Uganda which has the most conducive climate to increase the production of premium quality natural and organic vanilla.

In 2018, Uganda produced about 300,000Kg of vanilla and exported 23,000Kg of cured vanilla worth US $6.40 million.

In 2017 and 2018, the major importing countries for Ugandan vanilla included USA, France, United Kingdom, Germany, Japan, Canada, Denmark, Netherlands, Israel, South Africa, Turkey and Hungary. Madagascar is the largest producer (1500 to 1800 MT per year) while Uganda only accounts for about 5 per cent of the global production.

Prices for vanilla have been rising over the last few years due to increased demand against very low supply of quality beans.

In Uganda, prices reached Shs250,000 per kilogram in July 2018 for green vanilla beans at the farm-gate. It is not surprising to hear that vanilla is now referred to as the “Green Gold”.

This is because of the price fetched from cured vanilla which is higher than the value of one kilogram of silver.

s a country, Uganda has a window of opportunity to secure a growing long-term profitable vanilla sector. vanilla has proved to be a sustainable and profitable crop for farmers in Uganda that has potential to deliver the country into the medium income status.

Stories Continues after ad

MV Sigulu ferry ready for waters of Lake Victoria as works ministry unveils plans to construct Bukasa Port

MV Sigulu ready for the waters

The Uganda National Roads Authority (UNRA) has set afloat the MV Sigulu ferry onto the waters of Lake Victoria after seven months of construction at Masese landing site.

According to UNRA, the vessel will connect Namayingo district to the Islands of Lolwe and Sigulu, providing safe means of transport to the communities of Namayingo, Lolwe and Sigulu Islands at no cost

“It is expected to positively impact the communities through increased volumes of trade, tourism and increased access to social services that are not easily available on the islands.” Reads part of the statement.

The modern ferry which has a passenger capacity of 300 was constructed by Johs Gram-Hanssen (JGH), Western Marine Shipyard Limited Joint Venture. It has a Pay Load (Weight it can carry) 200 Tones, 15 Medium Vehicles and7 Knots (14 km/hr) Speed.

Key features include the hull, propulsion systems, wheelhouse, and sheltered passenger seating areas, crest rest room, a medical room and a cafeteria. It is however expected to be launched by president Museveni later next month.

Meanwhile, The Ministry of Works and Transport yesterday unveiled plans for the construction of Bukasa Port on shores of Lake Victoria.

According to the ministry, the port will provide reliable, effective and sustainable multi-modal transport system along the Central and Northern Corridor.

Expected to serve as trio-modal cargo handling facility for road, rail and water transport, the port will sit on 400 hectares on the shores of Lake Victoria.

Bukasa Port will serve as an International Transportation Logistic and Business Hub center for assembling, de-commissioning, storage & re-distribution of exports/imports.

“It will be an International Transportation Logistic and Business Hub center for assembling, de-commissioning, storage & re-distribution of exports/imports with regard to demand and supply chain along the Central Corridor Standard Gauge Railway, KLA-Jinja Express Highway and at Kampala Industrial Business Park- Namanve,” said the ministry.

According to the ministry, the Port will be constructed in three phases, which include:

Phase 1: covers preparation of Master Plan, Preliminary Design, and construction of start-up infrastructure, Dredging, Pilling and Swamp Surcharging. This Phase will be completed in April 2020.

Phase 2: covers construction of Bukasa Port to capacity of 2.3 million tons per year, construction of shipyard and floating dock. This Phase is expected to be completed by 2021.

Phase 3: covers future extension of the Port to the capacity of 5.2 million tons and to the maximum peak of 7.5 million tons. That Phase is expected to be completed by 2030.

Stories Continues after ad

Gen. Tumukunde storms Kampala for Mayoral campaigns

Gen. Tumukunde talking to his supporters

Former Security Minister, Lt.Gen. Henry Tumukunde has has kick started campaigns in his bid to become the next Lord Mayor of Kampala.

Gen. Tumukunde, this Saturday evening stormed Katanga slum in Kampala where he addressed his supporters. He is credited for raiding the criminals especially the ‘Kifeesi’ out of the city during his short stint as Minister for Security but also for weeding out the Allied Democratic Forces (ADF) urban hit squad that had invaded the city in the 1990s and early 2000s when he was chief of Military Intelligence.

He donated a bull to a team united which donned red T-shirts

Gen. Tumukunde joins a list of politicians interested in contesting for the Lord Mayor of Kampala come 2021 general elections, Eagle Online can confirm.

Sources say Tumukunde is yet to decide whether he will run on a party ticket or as an independent candidate.

Kawempe North MP Latiff SSebagala is also interested in the same seat come 2021 and Musician Jose Chameleon.

Sources say the current Mayor Erias Lukwago intends to give up the seat and instead contest for the President of the Democratic Party (DP), which position is currently occupied by Nobert Mao.

Henry Tumukunde Profile

Henry Tumukunde is a retired senior military officer of the Uganda People’s Defence Forces (UPDF). He was the Minister of National Security in the Cabinet of Uganda. He was appointed to that position on 6 June 2016. On 4 March 2018, he was relieved of his duties in an unexpected cabinet reshuffle following his public outburst with the then IGP Gen. Kale Kayihura.

Tumukunde is also a qualified lawyer. He has served as the UPDF’s chief of personnel and administration, chief of military intelligence as well as serving as the commanding officer of the UPDF Fourth Division, based in Gulu in the Northern Region of Uganda. He has also previously served as the director general of the Internal Security Organisation (ISO). Tumukunde was also a Member of Parliament representing the Army in the Parliament of Uganda between 1995 and 2005.[5]

Background and education

He was born on February 28, 1959 in Rukungiri District in the Western Region of Uganda. He attended Bishop Stuart College Demonstration School for his primary schooling. He studied at Kigezi College Butobere (Siniya) and Kibuli Secondary School for his O-Level and A-Level education, respectively. Tumukunde graduated from Makerere University with a Bachelor of Laws degree in 1981. He obtained a Diploma in Legal Practice awarded by the Law Development Centre in 2010. He also holds an Executive Masters in Oil and Gas Management, awarded by the Graduate Institute of Geneva in 2013.

Joining The NRA guerillas

During his time at Makerere, Tumukunde was involved in anti-government politics, which subsequently led to his joining of then rebels, the National Resistance Army, led by President Yoweri Museveni. Tumukunde was hounded by the government security services during his last year at the university and on completion, decided to join the struggle, along with two of his friends at the time, Major General Mugisha Muntu and Colonel Jet Mwebaze.

Obote’s security services at the time caught wind of their impending departure for the bush and mounted an attack on the NRA’s transit house (shop) in Kampala. It is said that Tumukunde alongside Muntu posed as shopkeepers, surviving what would have been sure torture and death. In the early stages of the war, Tumukunde was a machine gunner and eventually went on to become one of the senior officers in NRA, indicated by his senior number RA 0111.

Getting shot

In 1985, during one of the bigger battles with the Uganda National Liberation Front in Luweero District, Tumukunde was shot multiple times in his legs. The wounds were so major that it was thought he would not survive. He was, however, smuggled out of the country to Nairobi and eventually to London where he was operated on.

Post-Bush

On capturing power, Tumukunde was promoted to the rank of major and appointed first secretary and military attache at the Ugandan Embassy in the United Kingdom. Subsequently, Tumukunde was sent on a Command and Staff Course at the Armed Forces Command and Staff College, Jaji, in Kaduna, Nigeria from where he emerged as one of the best students. He later on returned to Uganda where he became the Army’s director of planning. Tumukunde served in this role for many years and was very instrumental in the setup of formal military structures in the UPDF, which had until then been a rebel army.

In 1994, Uganda held elections for the Constituent Assembly and Tumukunde sought to represent his home county Rubaabo. His main competitor was Prof. Mondo Kagonyera. Tumukunde, who was in early thirties at the time, was thought to be the underdog in the race; however, Tumukunde was a very good mobiliser and won by a landslide margin. Tumukunde then joined the CA, which formulated the current 1995 Ugandan Constitution. Tumukunde was known to be a regular and astute contributor to the sessions and debates that preceded the formation of the Constitution.

Following the set-up of the constitution, Uganda held elections and Tumukunde subsequently became a Member of Parliament representing the Army as a special interest group. He went on to serve as an MP until 2005. In addition to this, Tumukunde was promoted to the rank of lieutenant colonel and appointed chief of personnel and administration. In 1998, Tumukunde was again promoted to the rank of colonel and appointed chief of military intelligence and security. His tenure was arguably the most successful by any officer as it is during this time that Al-Qaeda’s plan to bomb the American Embassy was thwarted. There was also a time where bombings were rampant within the capital Kampala, and once again Tumukunde formed several intelligence committees within the city and the problem was managed. Tumukunde also built an amicable rapport with the Muslim community, which many had accused of spearheading the attacks, so much so that key intelligence information was forwarded to him with ease. Arguably, it was during his reign that the Ugandan intelligence apparatus was at its most efficient.

Tumukunde was then promoted to brigadier general and transferred to command the UPDF Fourth Division based in Gulu. At the time, the war with the LRA was ongoing and Tumukunde made significant headway during his time as division commanding officer in diminishing the threat of the LRA.

Tumukunde was then appointed director general of the ISO, Uganda’s civil intelligence body. During his time at ISO, Tumukunde set up structures that returned ISO to being the country’s foremost Intelligence gathering body, just as he had done with CMI. The Internal Security Organisation became renowned for its efficient and effective approach towards intelligence and counter-terrorism.

The fall out.

Tumukunde’s fast rise to the upper echelons of both the political and military scene in Uganda marked him out as one of Uganda’s most popular and well known figures and ultimately, this, alongside his very strong minded and unrelenting dedication to his country, brought him into the sights of the very institutions he helped to consolidate.[7]

At a political retreat in 2003, Tumukunde, in the presence of the president and his cabinet, argued against the impending removal of term limits that would give President Museveni the right to stand for re-election on an infinite basis. Tumukunde stated that this would be in direct contravention of the rights that they fought to establish and that he was not willing to take part in what he considered to be grossly unconstitutional behaviour. Predictably, this put him at loggerheads with the establishment and more so the president.

Arrest and detention

Tumukunde was charged with the offences of abuse of office and spreading harmful propaganda. The abuse of office charges were eventually dropped in a manner suggesting that they had been politically motivated in the first instance. What followed was, however, a surprise to many. Tumukunde was on 28 May 2005 forced to resign from Parliament and subsequently arrested on the orders of the president.[9]

His home was surrounded by at least 50 soldiers commanded by Brig. Kale Kayihura and Brig. Joshua Masaba who proceeded to arrest him. Gen. Tumukunde was then driven in a tightly guarded convoy to an officers mess turned detention center, where he was incarcerated for nearly 2 years, during which he had limited and tightly controlled contact with the outside world. His extrajudicial detention coupled with a series of controversial and uncertain court martial hearings seemed to backfire leading to irreversible pressure culminating in his release in 2007.
His arrest followed his opposing views to the proposed “third term” project that suggested a revision to the Ugandan constitution enabling one to serve more than two terms as president as was the case at the time.

On 18 April 2013, the UPDF General Court Martial sat to bring an end to the process that had lasted 8 years and summed up its deliberations. The charge of spreading harmful propaganda was dropped while the joint charge of military misconduct was upheld and Tumukunde was subsequently sentenced to a severe reprimand.

Promotion and retirement

In September 2015, Tumukunde had been was promoted to the rank of Lieutenant General and then retired from the Army.

Appointment to cabinet

On June 6, 2016, he was appointed to the Cabinet as the Minister of National Security. He was relieved of his cabinet responsibilities on the evening of Sunday, 4 March 2018, in a presidential tweet, in which his nemesis, General Kale Kayihura, the former Inspector General of Police was also fired. Tumukunde however, still subscribes to the ruling party the National Resistance Movement.

Stories Continues after ad

BoU scandals: Board members disown Mutebile over irregular appointment of staff

BoU Governor Emmanuel Tumusiime-Mutebile.

A confidential Report of the Presidential Tripartite Committee that was formed by President Yoweri Museveni to investigate the Bank of Uganda (BoU) Governor Prof. Emmanuel Tumusiime-Mutebile over his unilateral decision to recruit and make staff changes as announced on February 7, 2018, says the board members interviewed disassociated themselves from that decision and said Mutebile violated the Bank of Uganda Act when he took the decision without involving all members of the board and senior management.

“When the Committee interfaced with both current and former members of the Board of Directors and from the interactions the Committee noted a number of proposals and observations relevant to the situation prevailing at the Central Bank. It was noted that none of the current board members were aware of the Governor’s decision prior to the communication made on 7th February, 2018,” the report notes.

The committee appointed by Museveni included to do the investigation; MP Abdu Katuntu (MP) – Chairperson, Anita Among – Member, MP Michael Tusiime – Member, MP Elijah Okupa – 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.

According to the report, in one board member’s opinion, Mutebile had acted in violation of the BoU Act when he acted unilaterally to recruit new members of staff. “There was also concern that the Governor had irregularly transferred the Chief Internal Auditor which was a preserve of the Audit and Governance Committee of the Board,” report says.

The board members, according to the report, blamed Mutebile for appointing and transferring various staff to positions that did not officially exist in the bank’s structure. Further, the report says the Human Resource and Remuneration Committee of the Board disowned Mutebile, saying they had no input at all in the staff changes.

The report further notes that one board member observed that the Governor had premised the changes communicated in his memo on the policy on staff rotation which was misleading. This was because the actual changes also involved recruitment.

3.29 Another board member, the report notes, was of the view that there was a culture of not adhering to procedures at the Bank and that this had led to a loss of confidence of the staff in the senior leadership. “It was observed as being distrustful of internal grievance mechanisms. It was further opined that the recruitments conducted by the Governor were in error, against policy and outside of the existing structure,” it says.

The report further says that board members disregarded the requirement by the Governor that new appointees take over office immediately, saying it was uncalled for especially with regard to the position of the former Executive Director Supervision Justine Bagyenda who was already due to retire before she was replace by Dr. Twinemanzi Tumubweine who didn’t meet the experience required of that job.

“Another Board member expressed the view that the Governor’s reliance on a board resolution made in 2012 with regard to delegation of the functions of the Board to the Governor was misguided. This was because the resolution in question was framed in the context of the expiry of a particular board’s term and not in perpetuity.”

It was opined that the role and powers of the Governor and Deputy Governor were not stated in the existing laws and that there was a need for an additional slot of Deputy Governor. However, “a board member defended the Succession Policy at the bank as relevant in as much as it served as a talent management pool and helped with the effective filling of gaps created upon retirement or other departure of staff.”

The board members interviewed apart from Mutebile were; Dr. Louis Kasekende-Deputy Governor/Deputy Chairperson, Mr. Keith Muhakanizi- Member , Ms. Judy Obitre-Gama- Member, Dr. William Kalema-Member, Mr. James Kahooza- Member, Ms. Josephine Okwi Ossiya-Member and Mrs. Susan W. Kanyemibwa, Bank Secretary/Board Secretary.

The Committee also interviewed former Board members who expressed some views as follows:

That the current legal regime whereby the Governor is also the Chairman of the Board of Directors is problematic as it raises conflict of interest issues. They called for the creation of an extra position of Deputy Governor to allow for at least one Deputy to be exclusively tasked with operational matters in the Bank while the Governor and the other Deputy concentrate on monetary policy and other core functions.

“The creation of an extra slot of Deputy Governor also ensures that there is no time where senior staff below the rank of Deputy Governor get involved in the duties of the Governor or the Deputies,” they argued, according to the report.

The report says the former board members did not approve of Tumubweine replacing Bagyenda, arguing that Bank supervision requires persons who are highly experienced preferably with experience in commercial banking. Mutebile handpicked Tumubweine from the Uganda Communication Commission where he was working as he served as the Director of Industry Affairs and Content (Economic Affairs).

The reports says Mutebile justified his decision to recruit and promote staff on the grounds that he was acting with the authority of the Board delegated to him as Chairperson of the Board by virtue of a resolution of the Board of Directors at its 311st Meeting held on May 30, 2012. The Governor explained that according to that resolution he had delegated authority in the absence of a fully constituted Board to approve all matters that required Board consideration and approval. However board members dismissed this argument.

The former BoU board members, according to the report, called for the formation of a regular consultative forum where former Governors and Deputy Governors are able to meet with current office holders to discuss current affairs and to exchange ideas on how best to ensure optimal performance of the central bank.

Former board members interviewed were; Mr. Leo Kibirango-Governor , Dr. Ezra Suruma-Deputy Governor, Mr. Perez Bukumunhe- Deputy Governor , Mr. Robert Elangot-Deputy Governor and Mr. Opio Okello- Acting Deputy Governor

“The majority of the senior staff members interviewed tended to agree that there were factions or cliques in the Bank polarized around the positions of the Governor and the Deputy Governor,” says the report.

On concerns about the existence of cliques, one staff went further to characterize the cliques as potentially religious-based. In the words of the staff in question, “There is a risk of divisions according to religion in that Bank. Catholics and Anglicans have their own groups. They have meetings and each has its own power.”

Yet all the 60 staff interviewed indicated that the changes made by the Governor were a complete surprise. “Staff indicated a loss of confidence on account of unclear implementation or disregard of human resource policies especially with regard to succession. It was felt that policy is applied selectively,” says the report.

According to the report, all the staff by the committee interviewed indicated that the changes made by the Governor were a complete surprise.

Stories Continues after ad

There is need for stronger international cooperation

Christine Lagarde

By Christine Lagarde

I would like to congratulate Prime Minister Shinzo Abe, Deputy Prime Minister Taro Aso, and Bank of Japan Governor Haruhiko Kuroda for their chairmanship of this G20 Summit, and for their warm hospitality.

In my discussions with G20 Leaders, I noted that the global economy has hit a rough patch: investment has weakened and trade has slowed significantly, with export and import growth rates at their lowest level since the great financial crisis. Even though the IMF expects growth to strengthen somewhat going forward, the risks to the outlook remain serious.

Chief among these risks is trade. While the resumption of trade talks between the United States and China is welcome, tariffs already implemented are holding back the global economy, and unresolved issues carry a great deal of uncertainty about the future. I reiterated that the priority should be to reduce obstacles to trade—new and old, tariffs and otherwise—and to address the underlying sources of trade tensions and distortions.

We need a trading system fit for today’s world which means addressing gaps in the international rule book, including areas like agricultural and industrial subsidies, services and e-commerce. I welcomed Prime Minister Abe’s announcement of the Osaka Track framework relating to data flow and e-commerce. I also joined many Leaders in calling for accelerated reform of the WTO, for the benefit of all economies.

“I also pointed to other key areas where policy action is needed to restore confidence and help growth: central banks will need to continue to adjust policies with incoming data, and fiscal policy must balance growth support and debt sustainability; and structural reforms can support productivity and employment.

At the same time, the G20 should continue its important efforts to address a range of urgent common issues from corporate taxation to financial regulatory reform to corruption and climate change. I strongly endorse the Osaka Blue Ocean initiative aimed at reducing new plastic marine waste.

I was also very pleased to participate in the Leaders’ event on women’s empowerment. I presented to Prime Minister Abe the IMF’s assessment of this issue as macro-critical for the global economy, and our analysis which shows that closing the gender gap could boost GDP significantly in Japan and many other countries.

In conclusion, I said that while the global economy is currently at a precarious stage, with the right policies and working together, we can overcome the challenges that we face and set the world on a path of stronger, more sustainable, balanced, and inclusive growth.

Once again, I would like to thank the government, the city of Osaka, and the people of Japan for their hosting of this Summit meeting.

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the statement today at the conclusion of the Group of 20 (G20) Leaders’ Summit in Osaka, Japan.

Stories Continues after ad

Why MPs are likely to revisit Landlord Tenant Bill 2018

Mr. Wanambwa

By Richard Wanambwa

The Members of Parliament (MPs) last week passed the Landlord and Tenant Bill 2018 into an Act of Parliament, well knowing they did not do a good work especially on the side of landlords since the aim of the Act appears to save the majority voters who send the MPs to the legislature, more so when you bring 2021 elections into the picture. The bill/Act is not balanced and does not appreciate the contribution of the real estate industry (landlords) to the economy. It is unlikely that President Museveni will assent to the Act in current the form to make it law.

Firstly, in most countries a business / commercial tenancy is regulated differently to a residential tenancy. They are not regulated under the same Act. Members of Parliament are being disingenuous by stating that they are. The tenancy acts are regulated differently as business tenants who incur significant capital costs in fitting out there premises whether it be to trade, manufacture or produce require guaranteed tenure for the lifespan of the tenancy whereas residential tenants require the flexibility of notice periods.

Kacita has pushed the notice issue as their members do not put any capital into their premises and do not necessarily manufacture products, the Act as passed has protected small traders from the fixed term of a lease but will impact significantly on formalized business as they are not in a position to set up business where they cannot guarantee the full tenure)

An agreement is made based on two parties requirements, how can the minster prescribe the agreement to be used, this can be done in affordable housing and smaller tenancies where the tenant is only installing movable fittings or stock but not in formalized tenancy’s where there are tenant installations or landlords develop fit for purpose space for tenants on the back of a lease back.

There is a glaring error of not including the period of the tenancy in the requirements of the Act, which is the most important part of any tenancy agreement, which goes to the root of the problem of the Act, the legislators don’t understand the business of the property sector.

The Act requires that an agreement is defined 14 days after the occupation of a tenant. This creates disputes as the tenant is in occupation prior to finalization of the agreement. This can only lead to a dispute and should be amended to being defined prior to occupation. 6. Legislators have not defined what comprises “premises” or “common area” or “building”. Premises by law are what the tenant occupies. It is unsustainable that the landlord maintains the internals of the tenant premises as the Act requires. The landlord should maintain the Building, and the tenant his premises.

A covenant by a tenant to maintain premises is void – how is this sustainable as the tenant has to be responsible for maintaining his fixtures and fittings the way the act reads, the landlord has to maintain tenant’s assets. In an engineering works the Landlord would have to maintain the tenants’ equipment as the Act reads.

The Minister is to prescribe the form of tenancy agreements and notices thereto for the landlord to use – the minister is not party to the deal done and therefore there cannot be a standard agreement prescribed by law.

All tenancy agreements are void if they do not prescribe to all regulations in the Act – The regulations of the act are untenable and therefore all tenancies shall be void.

The Act requires the Landlord to meter sewerage to recover such, it is impossible to meter sewerage so by definition of the Act the landlord has to pay all sewerage costs.

The landlord is responsible for all installation costs in connection to water, gas, sanitation, sewerage or other utility services – this works for small tenants or house with tenants but what of large scale data centres or refrigerated warehouses or supermarkets were load requirements are specific to the nature of the business, the landlord will not find it viable to incur these costs and if the tenant pays for these installations, then the agreement is void as per the Act and the landlord could suffer imprisonment – So major industry grinds to a halt unless the tenant becomes his own landlord, so SME business who cannot afford their own property will cease to grow and trade, impacting on job creation and stifling the economy

Deposit cannot equate to more than one months rental – this impacts on finance which requires a three month deposit, also the landlord can only react to an abandonment as per the ACT after a 45 day process, So operationally the Landlord is at risk prior to the tenancy commencement and in turn market rentals will have to increase to defer this risk, making accommodation more expensive therein creating more housing shortages in the long term. The final impact of this is more informal or shanty housing, leaving lower income Ugandans worse off thanks to the Act and seriously disenfranchising them.

Landlord cannot increase rental at a rate of more than 10 per cent, on shilling based loans the landlord already has a loss as interest rates are nearly double this, also does not take into account beneficial occupation period or rent free periods were in effect the rental would escalate way more than 10 per cent in the first year, making the tenancy agreement void and the landlord culpable to a prison sentence as per the ACT for giving a rent free period to a tenant.

Consent to terminate can be given orally, this can only be disputed and create a log jam in the courts as parties will dispute what was agreed.

A landlord can be imprisoned for a period of one year for aggravating a tenant, aggravation is not even defined in the Act and this can only end up in coercive practices, the question remains as to have a civil agreement between parties and a dispute thereof can lead to criminal proceedings. It is in doubt if this is legally tenable.

Financing of real estate developments requires the recipient of the loan to ensure that his revenue streams are in the same currency so as to obtain the loan. Dollar based finance arrangements are at an average interest level of 7 per cent currently and shilling based loans are at 20 per cent. These interest rates are an input expense in to a development and the developer requires rental revenue streams to mitigate expenses otherwise developers will not proceed.

The case study below shows a residential house at a capital cost of $50 000 / Shs185 000 000 and what rental the landlord would require to cover loan obligations so as to invest. Dollar Based Transaction Shilling Based Transaction Capital Cost: $50 000/ Shs185 000 000 Interest 7 per cent 20 per cent Loan Term 10 Years 10 Years Monthly Loan Repayment $580.54 Shs3 575 229 Comparison Rental in Shs2 147 998 Shs575 229

Required rental rates to cover a shilling based transaction at current interest rates would impact on rental revenue required for viability to be 66.44 per cent more expensive than a dollar based transaction Should government introduce a cap on interest rates at 5 per cent above the CBR rate, then for argument sake the interest rate was capped at 15 per cent the required rental would still be 38.95 per cent higher on a shilling transaction than a dollar transaction.

The impact of this Act will drive required rentals higher and impact negatively on the growth of the economy. Higher rental rates will see further closure of businesses, lower employment levels and less tax revenue. Vacancies will put further pressure on the property market and most importantly foreign currency loans will have to be converted into shilling based loans. Local Banks will be inundated with financing requests which they do not have adequate capital to sustain.

Non-performing loans in Uganda will increase and the currency will further destabilize. Basically the Act does not allow for property development growth, protects a small band of traders in the Central Business District and negatively impacts on the Ugandan economy, which in turn will hurt the very demographic it was due to protect. In short those with access to hard currency will continue to enrich themselves and the lower income demographic will be further down trodden – The Rich Will Get Richer, The Growth of The Middle Class Will Grind To a Halt, the Poor Will Get Poorer and the country will destabilize into chaos!!

@WanambwaRichard
richardwanambwagmail.com
richardwanambwa@eagle.co.ug
Richard Wanambwa is the Managing Partner BigFoot Media and Publications Limited

Stories Continues after ad

WHO: Expanding access to health services with self-care interventions

At least 400 million people worldwide lack access to the most essential health services. By 2035, there will be an estimated shortage of nearly 13 million healthcare workers. Around 1 in 5 of the world’s population will be living in settings that are experiencing humanitarian crises.

At the same time, new diagnostics, devices, drugs and digital innovations are transforming how people interact with the health sector.

In response to this, WHO launched its first guideline on self-care interventions for health, with a focus in this first volume on sexual and reproductive health and rights. Some of the interventions include self-sampling for HPV and sexually transmitted infections, self-injectable contraceptives, home-based ovulation predictor kits, HIV self-testing and self-management of medical abortion.

These guidelines look at the scientific evidence for health benefits of certain interventions that can be done outside the conventional health sector, although sometimes with the support of a health-care provider.  They do not replace high-quality health services nor are they a shortcut to achieving universal health coverage.

What is self care?

Self care is “the ability of individuals, families and communities to promote health, prevent disease, maintain health, and cope with illness and disability with or without the support of a health-care provider”.

Self-care interventions represent a significant push towards new and greater self-efficacy, autonomy and engagement in health for self-carers and caregivers. In launching this guideline, WHO recognizes how self-care interventions could expand access to health services, including for vulnerable populations. People are increasingly active participants in their own health care and have a right to a greater choice of interventions that meets their needs across their lifetime, but also should be able to access, control, and have affordable options to manage their health and well-being.

Access for the most vulnerable

Self-care interventions are a complementary approach to health care that forms an important part of the health system. Self care is also a means for people who are negatively affected by gender, political, cultural and power dynamics including those who are forcibly displaced, to have access to sexual and reproductive health services, as many people are unable to make decisions around sexuality and reproduction.

Promoting a safe and supportive enabling environment in which they can access and use health interventions when and where they choose to, improves autonomy and helps improve the health and well-being of these vulnerable and marginalized people.

The importance of self-care interventions for health policy, financing and systems has thus far been undervalued and its potential not fully acknowledged, despite the fact that people have been practicing self care for millennia.

WHO’s first consolidated guideline on self-care interventions for health – starting with the importance of sexual and reproductive health and rights – is a step in placing people at the centre of health care, bringing quality interventions to them, while maintaining the accountability of the health system.

WHO is assessing the role of health providers and the competencies they need to support self-care interventions. To date, the evidence suggests that self-care allows health providers to serve greater numbers of people and use their skills where greatest need exists.

The guidelines will be expanded to include other self-care interventions, including for prevention and treatment of noncommunicable diseases. WHO is establishing a community of practice for self-care, and will be promoting research and dialogue in this area during self-care month (24 June to 24 July).

Stories Continues after ad

Public hearings an effective way to have citizen participation

Mr. Woira

For quite a long time, I have been wondering how public can have their issues considered in decision making. Local Ugandans cannot easily submit their views to parliament but can instead decide to be frequent radio and Television callers who lament, share ideas and finally send greetings to our loved ones on talk shows where certain resourceful debates are being aired.

Last week, I spent some time in the Albertine region in the districts of Kikuube (Kyangwali Sub County) and then Hoima (Buseruka Sub County) just to have a feel of these public hearings that were organized by the Petroleum Authority of Uganda, National Environment Management Authority and other stakeholders for the Kingfisher project.

A public hearing is an open forum, typically held to inform the decision-making process by the government, or a government agency, or an organization that is planning to undertake a major construction project with significant impacts. The hearing is organized and held by the government agency or organization in the area where the development will take place and have the greatest impact, and is open to anyone to attend.

Now back to the sessions that happened on 19th and 21st June in Kikuube and Hoima districts. Ever since Uganda woke up to the news of having confirmed commercial oil in the year 2006, all of us have always been happy to have this blessing, that a few unpatriotic politicians refer to as a curse in some countries. Several stages like exploration, and appraisal having been concluded, and now we are at the development stage. During this stage, the facilities/ infrastructure to facilitate production of the petroleum resources that have been discovered on our Uganda soil will be constructed.

The Kingfisher project’s main objective is to establish petroleum production facilities and support infrastructure in specific areas in Kikuube and Hoima districts. The Public hearings therefore, provide an opportunity of dealing with the issues and concerns of the public in order to make sure that by the time we start enjoying fruits from our oil most of complaints against the processes being carried out have been addressed.

It’s based on the above that the Petroleum Authority of Uganda organized the public hearings to present, discuss and receive feedback on the Environment and Social Impact Assessment (ESIA) report that was carried out on the Kingfisher Development project.
Yes, this is a very welcome engagement and it gives hope to all natives of these areas that are directly affected, that the government and the oil companies will ensure that impacts such as loss of land to the project will be addressed through adequate compensation, resettlement and livelihood restoration. In addition, citizens can add their voice to the report submitted to Government by the oil company during the public hearing, and also get immediate responses or clarifications on their issues before the final ESIA report is submitted to NEMA for a decision.

I personally think that the Public Hearings were successful because the sessions were well publicized in the local and national media. The ESIA was also produced in a summarized and simplified version, in both English and the local languages which were distributed before, during and after the public hearings. The level of publicity, in turn, determines how well attended the hearing can be, and indeed there was a lot of advertising which really made a very good number of citizens to attend the sessions and openly say what they feel about the project. The two hearings brought together over 10,000 people.

The people in Kikuube and Hoima expressed their views in response to the Environmental assessment report and other issues affecting them as people in the oil rich areas and this will help the Authority together with the Kingfisher project to deal with all the issues presented by the locals in the project affected area so that by the actual construction start, everyone supports the project in the Albertine.
The participation of citizens in public policies is an opportunity not only to educate them, but also to increase their empowerment. However, the best way for deploying participatory policies, defining their scope and approach, still remains an open and continuous debate concerning the issues contained in the project which is a very good model that NEMA and PAU have used.

Over the recent years, the role of government has been constantly challenged, with an increasing emphasis on engaging citizens and empowering stakeholders during the planning and deployment of some developmental programs. The society has always demanded an increased participation and accountability in public policies and at the same time, complex and specialized issues emerge in this environment and risky decisions need to be quickly made.

The demand for good public policies has become more complicated, requiring more ability and skill from managers and policy makers who need to have serious well organized engagements with members of the public before some decisions are being taken. Last week as I was sharing ideas on Eastern Voice radio, Bugiri, and emphasized that in order to protect the public interest, participation is a mechanism for ratifying issues with stakeholders and increasing transparency and compliance.
Democratic control mechanisms may be adopted to guarantee a legitimate regulatory action, through which the interests of the citizens concerned are expressed. Some of these mechanisms are public hearings where everyone says what they feel and then the concerned parties weigh in and see how the issues of the people are being considered while also looking at the developments being made in these areas.

Now, basing on what happened in Hoima and Kikuube as the people were submitting on the various issues that they have concerning the oil projects, I think the same can be applied to all ministries, departments and agencies before the final decisions are made because if locals are not engaged in the decision making then that causes serious troubles in future and it also distances them from contributing towards what happens in their country.
Our members of parliament that we vote to be our voices camouflage when they arrive in Kampala, they decide without consulting us the voters, they only come back home for burials and now these act as their public hearings because it’s on such occasions that members of the society express their views concerning several issues that they affect their areas.

If we are looking for continued participation of citizens as a country, public hearings emerge as one of the most important tools for direct participation because they are among the most traditional methods for citizen participation in many parts of the world. We therefore require such hearings at all levels of government and avoid the thinking that all citizens’ issues are being presented to the concerned parties by some of our leaders.

Michael Woira
Patriotic Ugandan

Stories Continues after ad