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Museveni pays tribute to late Bishop Cyprian Bamwoze

President Museveni paying tribute to the late Bishop Bamwoze at parliament.

President Yoweri Museveni, has paid tribute to former Busoga Bishop, Cyprian Bamwoze who succumbed to cancer at Uganda cancer institute (UCI), Mulago on Monday morning.

In a plenary sitting chaired by the Speaker of Parliament, Rebecca Kadaga, Prime Minister Dr. Ruhakana Rugunda moved a motion for parliament to pay tribute to the Bishop Cyprian Bamwoze for his contribution towards the development of Uganda.

“In accordance with his wishes, there will be no laying of wreaths on his casket. Later, President Museveni will pay his tribute to the late Bishop. I will allow the President in accordance to our rules to do so,” she directed.

Kadaga said, the late Bishop was highly educated ahead of his time. He was grounded in theology and philosophy. He was a transformative and an exemplary leader who fought poverty, ignorance and disease.

Dr. Rugunda said the deceased championed programmes like immunization against common killer diseases, family planning, protection of spring wells, drilling boreholes and teaching people about community development, basic hygiene, nutrition and agriculture.

The motion was supported by the Leader of Opposition (LoP), Betty AoL Ochan, saying that the country has lost a resourceful and irreplaceable person who worked for the improvement of cultural welfare in Busoga region.

He donated land for the construction of Busoga University that was recently closed and implored government to render a hand in solving hindrances of the Busoga University other than closing it.

Addressing parliament, Museveni who arrived during session said he has known Bamwoze for 57 years, “I met him at a Christian youth camp at Nabugabo. I was a born again Christian (mulokole) and a very active member of the Scripture Union Movement,” he added.

Mr. Museveni said at that time, the movement of scripture union was really good in terms of making the young people learn the bible more but also be sensitized about life in general. “I TAKE this opportunity to salute this man, May his soul rest in peace,” said Mr. Museveni

“The church helped me so much; even when we were fighting, we did it in a Christian way. The mentality picked from religious instruction helped me to navigate through all those issues,” He said during the plenary.

Buzaaya County MP, Isaac Musumba said the lord has chosen to take his soul, “Bishop loved, embraced humanity, served for equality, religion and cultural leadership. He was a bishop like on other,” he said.

Minister for Presidency peace Mutuuzo said, the candle of bishop Bamwoze has burnt out however the candle of his achievements will burn forever. “He was a developmental oriented man and an agriculturalist who set up a fish farm where many learnt about fish farming,” she said.

Bishop Bamwoze was the first Bishop of Busoga Diocese being consecrated in 1972 after the creation of Busoga Diocese from Namirembe. He however, retired in 1998 after years of turbulence among his flock who accused him of maladministration and arrogance. He was succeeded by Dr Michael Kyomya.

An Old Boy of Busoga College Mwiri, students there will remember the Bishop for his generosity, as he always gifted his former house at the school with a bull from his farm to roast at the end of every year, as part of his way of giving back.

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MPs accuse colleagues Sheila Mwine and Brig. Takira of authoring fictitious report on Kasekende, Bagyenda wealth

Some MPs on parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), have rubbished a report of the sub-committee that was formed to scrutinise properties of Bank of Uganda (BoU) deputy governor, Dr. Louise Kasekende and former Executive Director for bank supervision, Justine Bagyenda.

On December 13, 2018 COSASE led by Chairperson Abdu Katuntu appointed a three-member subcommittee chaired by Bukedea Woman MP Anita Among, UPDF MP Brig Francis Takira and Kiruhura Woman MP Sheila Mwine to investigate the titles of land properties of the two officials and present a report to guide on the way forward.

The appointment of the sub-committee followed documents tabled by Aruu South MP Odonga Otto, showing that Kasekende owned 72 properties in and around Kampala and dozens of land titles some in the names of his relatives and his driver. Otto also tabled documents showing that Kasekende had transferred 18 land tittles into the names of his driver a one Musitwa and 35 land tittles into names of his relatives.

On the same date, Kasilo County legislator Elijah Okupa also presented documents concerning 11 properties that allegedly belong to Bagyenda in addition to asking the committee to summon the Financial Intelligence Authority over the matter.

Now some MPs on COSASE are querying the probe of Bagyenda over her properties, saying colleagues who probed Bagyenda came from western Uganda like Bagyenda herself and therefore, they have got vested interests. They say such a report cannot be fair as Bagyenda might have comprised them. They say MP Anita Among, the out-going Vice Chairperson of COSASE never participate in the scrutiny of Bagyenda’s land titles. Eagle Online, has established that MP Among who was chairing the committee yesterday threw out the report by the two MPs warning that exclusion of other committee members would make the report unacceptable.

“We gave documents to the committee it would have been better for Hon. Mwine and Hon. Brig. Takira to invite us to give input. But to our surprise the two yesterday brought a report to which we were not party to and we suspect this is the work of Bagyenda who is using fellow tribemates,” said a concerned MP.

“For us we will not be allowed to be used on wrong report and we will go to court,” he added.

The issue of Kasekende’s and Bagyenda’s properties came in on December, 13 as MPs were probing BoU officials over the controversial closure and liquidation of seven defunct banks such as Teefe Trust Bank, International Credit Bank, Greenland Bank, Cooperative Bank, National Bank of Commerce, Global Trust Bank Uganda and Crane Bank Limited (CBL).

Mp Otto also on December 13, 2018, tabled bank statements detailing the transfer of US $1 million to Ms Edith Kasekende’s account by a Chinese firm, and another Shs1.9 billion from MMAKS Advocates.

He then said: “What is of interest to me is the transfer of US $1 million to Mrs. Edith Kasekende’s account by China Railway Group. China Railway Group is the company that constructed the BoU currency centre. The committee should pick interest.”

“These people were closing banks to enrich themselves. The public has to know the motivation of some people to close banks. The Ministry of lands authenticated the documents by giving a search certificate detailing that these 16 properties are in your names,” Otto said.

Details of Bagyenda’s wealth leaked in March last year, showing that she had Shs19 billion on three different bank accounts, which ignited a public debate on how she accumulated such amount of money within six years. Other leaked documents showed she own various properties in upscale Kampala.

The Inspectorate of Government (IG) and the Financial Intelligence Authority later launched investigations into how Bagyenda accumulated the wealth though no report has ever been released to the public.

Leaked Mobile Money transactions from her MTN account showed Ms Bagyenda had transacted a whopping Shs499, 428,906 million in three years.

Meanwhile a new document shows that BoU’s legal department drafted the Purchase and Assumption of Liabilities agreement between BoU and Dfcu when the latter bought of the assets of CBL in January 2017. However MMKAS Advocates in their written response to COSASE on February 12, 2019 said they worked with the department to draft the agreement.

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Tullow oil to receive $100m on its farm-down to CNOOC and Total

Paul McDade

Tullow Oil Plc expects a cash payment of US $100 million on its farm-down to CNOOC and Total, according to Paul McDade, Chief executive officer who presented the company’s financials for the year 2018.

McDade confirmed following meetings in January 2019 between the CEOs of both Tullow and Total and President Museveni where Tullow agreed the principles for Capital Gains Tax on its $900 million Uganda farm-down.

On 9 January 2017, Tullow announced that it had agreed a substantial farm-down of its assets in Uganda to Total. Under the Sale and Purchase Agreement, Tullow agreed to transfer 21.57 per cent of its 33.33 per cent interest in Exploration Areas 1, 1A, 2 and 3A in Uganda.

The Government of Uganda and the JV Partners are now engaged in discussions to finalise an agreement reflecting the tax that will enable completion of the farm-down to take place. “Any Capital Gains Tax is expected to be phased and partly linked to project progress,” said McDade.

At completion of the farm-down, Tullow also anticipates receiving a payment of the working capital completion adjustment and deferred consideration for the pre-completion period of US $108 million.

A further $50 million of cash consideration is due to be received when the final investment decision (FID) is taken on the development project. “The JV Partners continue to work towards reaching FID for the development project around mid-2019. During 2018, the upstream and pipeline FEED were completed in preparation for the award of Engineering, Procurement and Construction (EPC) contracts in 2019,” he said.

“Drilling and well construction designs and contracting activities are complete and contracts are ready to be awarded,” McDade said, adding that both Tilenga and Kingfisher were submitted to the National Environmental Management Authority for review with approval expected in the first half of 2019.

“Land access activities have progressed with the active support of the Government in line with project requirements. In addition, critical transport infrastructure, including roads and an airport within the development area is being improved by the government in support of the development.

Project financing for the pipeline is progressing well with the development of the financial model ongoing. In the first half of 2019, the JV Partners anticipate completing key commercial, technical and land agreements with the Governments of Uganda and Tanzania as well as the submission of an ESIA for the pipeline to both governments,” he says.

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Citizen sues Minister Kiwanda over Miss Curvy beauty pageant

Minister Kiwanda (white shirt) and Anne Mungoma (2nd L) during the media launch of Miss Curvy Uganda.

State Minister for Tourism, Godfrey Kiwanda Ssuubi has been sued in court over Miss Curvy Beauty Pageant by a Ugandan citizen Gideon Tugume.

Minister Kiwanda was dragged to court alongside Anne Mungoma, the event organiser.

Mr. Tugume wants the Chief Magistrates Court in Kampala to direct the sued parties not to hold the intended pageant anywhere in Uganda.

He also prays that court declare that Miss Curvy event is discriminative, degrading and shameful to the country’s culture and heritage.

He says the defendants should be personally charged under section 160 (a), (b), 32 and 148 of the Penal Code Act CAP 120 as well as an order for apology by Kiwanda to the nation through the media.

“The plaintiff’s cause of action against the defendants arose as follows (a) that on 5th day of February 2019, the defendants together with others mobilised women and girls and addressed the media of the intention to hold Miss Curvy (the contest of buttocks) in Uganda in the month of June, 2019 against Uganda’s culture of women respect, laws and dignity.” He argues that currently there’s no law and guidelines under which such event of Miss Curvy competitions can be held,” lawsuit reads in part.

Kiwanda has refuted media reports that he is promoting the campaign aimed at using curvy women as a tourist attraction. He says his participation at the launch of the contest was to support a beauty standard which is in line with the country’s native cultural preferences and not using curvy women as tourist attractions.

Majority MPs yesterday supported Kiwanda, saying he was working to promote Uganda’s tourism industry by showcasing the beauty and shapes of Ugandan fat women.

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MTN announces Shs1 billion for betterment of Maternal Health facilities in the country

I CEO Stanbic bank Patrick Mweheire and MTN's Martin Sebuliba.

MTN announces Shs1 billion for betterment of Maternal Health facilities in the country

MTN’s Foundation group has announced its contribution of an additional Shs400 million summing it to Shs1 billion proceeding towards the improvement of maternal health in the five regions in the country.

The telecom company has this morning confirmed it that the three successful inaugural regional marathons in Mbale, Gulu and Mbarara on top of the MTN Kampala Marathon attracted over 30,000 runners who either paid a fee of Shs25, 000 or Shs23,000 raising Shs600 million. However, the company added on Shs400 million to make it Shs1 billion for the betterment of Maternal Health facilities.

Speaking at MTN headquarters at Crested Towers, MTN Uganda boss, Wim Vanhelleputte said marathons started in 2004 with about 1,500 runners and Shs20 million was collected and since then the company has been holding marathons and in 2018 runners were 30,000 were registered and Shs 4 billion has been raised since 2004.

He lauded Stanbic bank, Huawei, New vision and Rwenzori for partnering with MTN for a noble cause saying this is the power of connection.

“Participation in the MTN Marathon was impressive as participants came together and raised money for the improvement of maternal health,” he said in a speech read by Martin Sebuliba.

“Each of our partners will take up a region in Uganda and they will implement the proceeds in the region allocated to them. We believe that together we shall make a difference in the lives of mothers,” he said Mr. Wim

He said Stanbic bank has been a partner in the MTN Marathon. “They have been with us every step of the way. We will continue with them as long as this initiative is there. We are also grateful to all our other partners.

The CEO of Stanbic bank Patrick Mweheire applauded MTN and the other partners for making a difference. “We have a total of Shs 1 billion from the proceeds last year. We have a lot of issues with maternal health. We are excited to implement,” he said.

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Over 50 slot machines seized in Ntungamo

Illegal-slot-Machine

The National Gaming Board Uganda, under section 4 of the Lotteries and Gaming Act No. 7 of 2016, is mandated to issue licenses for Lotteries, Casinos, Gaming and Betting in Uganda. The mandate includes Licensing, Supervision, Enforcement and dispute resolution.

The Board has powers to conduct investigation, examination, inspection and issue guidelines, directives or instructions for the proper management of the industry.

In relation to the above mandates, National Gaming Board is currently in Ntungamo district enforcing against illegal slot machine operators.

So far over 50 machines have been impounded and will be destroyed within a months’ time.

NGB is also mandated by law to supervise and regulate the establishment, management and operation of lotteries, gaming betting and casinos in Uganda, and to protect the citizens from the adverse effects of gaming and betting in Uganda.

The Board would like to therefore call upon the general public to report any illegal gaming operations in their neighborhoods, municipalities and towns to NGB (toll free 0800100090 or email to info@ngb.go.ug).

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Landlord and Tenant Bill, 2018 will cure disputes between owners and tenants in the city- Everest Kayondo

KACITA team before MPs

Kampala city traders have assured Parliament that the proposed Landlord and Tenant Bill, 2018 will cure disputes between owners and tenants in the city.

Traders under their umbrella body, Kampala City Traders Association (KACITA) who were before the Committee on Physical Infrastructure said Kampala landlords have been fleecing tenants in numerous ways.

The Chairperson of KACITA, Everest Kayondo called on fellow traders and owners to embrace the proposed law saying, “Even the 10 per cent annual rent increment which they are complaining about is way above the inflation rate”.

City traders are also in agreement with the provision in the bill to stop landlords from charging rent in foreign currency.

“This puts unnecessary pressure on our currency; we need foreign currency when we are moving out of the country not here,” Kayondo said.

Legislators also supported the move to have rent paid in local currencies instead of the US dollars which they said diminishes chances of the shillings gaining value.

“Tenants are suffering; I am in support that we completely get rid of foreign currency. When shall we have the sovereignty of our currency?” asked Makindye Ssabagabo MP Ssempala Kigozi.

Bubulo West Mp Rose Mutonyi expressed the need to charge rent in shillings saying it will strengthen the value of the local currency. “You cannot introduce Uganda shillings in the US. If we don’t promote our shillings when will it gain value?” she asked.

Real Estates agents rejected the proposal to restrict rent payment in local currency on grounds that the shilling is often unstable.

Parliament was asked to consider establishment of a tribunal to handle disputes accruing from landlord-tenant relationships. Traders said the tribunal will save time and costs associated with courts of laws even in settling minor disputes.

Dramani Santino, a Senior Housing Officer at the Ministry of Lands, Housing and Urban Development said that the ministry supports dispute resolution mechanisms outside courts of law as long as they are accessible and affordable.

“The tribunal we are looking at should not be under the Magistrate court, it should include local council and be affordable by the poor,” said Dramani.

The object of the Bill is to regulate the relationship of landlord and tenant, to reform and consolidate the law relating to the letting of premises and to provide for responsibilities of landlords and tenant in relation to the letting of premises.

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Africa Business Coalition for Health receives endorsement from African Heads of State

Officals at launch of Africa Business Coalition for Health

An ambitious platform designed to bring together business leaders in Africa to collaborate with heads of government and other stakeholders to tackle basic health challenges in Africa has been launched in Addis Ababa, Ethiopia with assurances from government to collaborate for a healthier Africans.

The platform, African Business Coalition for Health (ABC Health) was launched with commitments by all partners and stakeholders to put efforts together to improve basic health care services in the continent during the inaugural Africa Business: Health Forum 2019, which witnessed the launch of the official logo of the ABC Health.

The ABC Health is a joint initiative of Aliko Dangote Foundation; GBCHealth, and United Nations Economic Commission for Africa (UNECA), with the objective of driving business leadership, strengthening partnerships, and facilitating investments to change the face of healthcare in Africa.

Taking place on the margins of the 32nd African Union Summit Heads of Governments and Business Community leaders across Africa, the forum examined opportunities to accelerate economic development and growth of the continent through a healthcare reform agenda that focuses on the wellbeing of employees for a more active and productive workforce.

The forum is expected to unify Africa’s key decision makers in exploring opportunities for catalysing growth in the continent’s economy, through business partnerships to invest in the health sector.

In his opening remarks, the Chairman of Aliko Dangote Foundation, Alhaji Aliko Dangote, who was represented by the Foundation’s Executive Director, Halima Aliko-Dangote said Africa Business Health Forum would identify issues and solutions to Africa’s health challenges with a view to mobilizing the will to confront it headlong.

He said it is a well-known fact that there is a vital relationship between health and economic growth and development in Africa as healthy populations live longer, are more productive, and save more. Access to essential health services is an important aspect of development.

Dangote stated that “Governments from both developed and developing countries are increasingly looking at public-private partnerships (PPPs) as a way to expand access to higher-quality health services by leveraging capital, managerial capacity, and know-how from the private sector.”

According to him, “Africa’s healthcare systems demand significant investments to meet the needs of their growing populations, changing patterns of diseases and the internationally-agreed development goals.

He said as a businessman, and through Aliko Dangote foundation, he is committed to working with governments and key stakeholders for the development of impactful health initiatives in Africa in the belief that private sector leaders have a strong role to play.

Back in his home country, Dangote informed his audience that in keeping with his passion to see a healthier African people and better continent he has proposed and charged business leaders to commit at least one percent of their profit after tax to support the health sector.

In his own remark, the Co-Chair of the GBCHealth, Aigboje Aig-Imoukhuede, said while Africa has made significant progress in the funding of healthcare, “we are still very far from where we need to be to achieve SDG Goal 3,”

He lamented that the healthcare in Africa is constrained by scarce public funding and limited donor support, and that the out of pocket expenditure accounts for 36% of Africa’s total healthcare spend pointing out that given the income levels in Africa, it is no surprise that healthcare spend in Africa is grossly inadequate to meet Africa’s needs leading to a financing gap of N66bn per annum.

Mr Imhokuede said it was clear that African government alone cannot solve this challenge, which is further exacerbated by our growing population and Africa’s changing disease portfolio. Therefore there is no alternative but to turn to the private sector to complement government funding.

Said he “Our continent accounts for less than 2% of global health even though our very fertile people account for 16% of global population and carry 26% of the global disease burden. By 2050 Africans will account for more than 50% of global population growth much of that coming from my country Nigeria, a great opportunity and at the same time a ticking time bomb should we fail our health systems quickly.

“That is why we have gathered here in Addis Ababa today to see how together we can fix health in Africa. The private sector and the public sector working together as partners have the potential to change Africa’s healthcare from doom and gloom to progress and results. Africa’s private sector has great capacity to be relevant partners.

“The private sector must be encouraged to optimize and step up its involvement and contribution to health funding in Africa. We have seen what global private sector players accomplished in the fight against the AIDS epidemic through powerful coalitions such as GBCHealth. This is an indication of the power of consolidated effort which Africa’s growing private sector can bring to solving our health challenges.”

“African leaders now have a stronger sense of urgency to combat the lack of quality health care that Africans endure. The inequality of healthcare available to Africans compared to people in other parts of the globe is vast and unacceptably pervasive. With the cooperation of both the public and private sectors, there is a huge potential to boost health outcomes with significant financial gains,” said Aigboje Aig-Imoukhuede, Co-Chair GBCHealth.

The Executive Secretary of the United Nation Economic Commission for Africa (UNECA), Vera Songwe regretted that that Africa with over 50 countries is struggling to combat her healthcare challenges but that organizations such as being launch offer a veritable perspective from the private sector to the solutions to Africa’s health care problems.

She said about $17.3 worth of drugs are imported into African Continent and that if Africa can manufacture those drugs, then that would be 17.3 billion worth of jobs created.

However, to attract the participation of African private sector, there is the need to create enabling environment. “To the private sector, our leaders are expecting you to invest in healthcare because you will get higher returns than you can get anywhere else.”

According to her, a healthier Africa would be a happy Africa and a happy Africa will be a productive Africa.

One after another, the three African heads of governments, namely President of Republic of Djibouti, Omar Gilles; the Ethiopian Prime Minister, Abiy Ahmed; and Botswana President Mokgweetsi Masisi took turn to explain what their administrations have been doing to improve health care delivery services in their respective countries.

They also gave lack of adequate funding as part of the problems militating aginst achieving their administrations’ plan to provide sound health care services just as other African countries.

They all endorsed the establishment of Africa Business Coalition for Health and concluded that it would provide opportunities to accelerate economic development and growth of the continent through a healthcare reform agenda that focuses on the wellbeing of employees for a more active and productive workforce.

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Q-Ball awards winners in valentine special offer

Q-Ball, an online bidding and auction house has today awarded first winners since the launch of valentine special offer at discount of 90 per cent of any desired product on sale.

Q-Ball is competition based company that holds auctions of most demanded items ranging from gadgets to trips. Every week, the house plans to have a new list of auction items that people can bid for starting at really low reserved prices.

According to Executive Director of Q-Ball, Ms Pamela Kapa, said valentine special offer was lunched on February 1 with offers including a one night for a couple at Lake Victoria Serena Resort, at a cost of Shs 100,000, IPhone X at 50,000 and Sam Sung S9.

After bidding, Mr. Stuart Akankwasa won himself a night at Divine, April Mugume Valentine’s night at Serena resort Kigo, Robinson Okello got himself a Valentines night at Serena Kampala. Mr Arnold Mugisha a 26 year old, won himself IPhone X and Sam Sung S9 after he placed bids using two different sim cards.

Speaking during the handover ceremony at Serena hotel Akankwasa said Q-Ball is none gambling or lottery organisation. “What the bidders did was to dial *252* or log into q-ball.ug, make a bid worth Shs1,000 off mobile money account. Every transaction comes with 10 per cent bonus in form of airtime and the highest number of bids wins the praise,” she said.

“So if you place 50 bids and you’re the winner at the close of the bidding process, then you’ll be able to purchase it at it’s initial Shs200,000 and 50 bids which bring it to Shs250,000,” she said.

She said Q-Ball is the place where you come to buy your dreams at the most affordable prices, “We empower our clients and create great economic opportunity,” she added.

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Let Bank Supervisors Do Their Jobs

Bank of Uganda headquarters in Kampala.

By Tobias Adrian and Aditya Narain

Healthy banking sector. Healthy economy. So goes the thinking. Banks play a vital role in economic life—whether for individual consumers, or more broadly across an entire economy—and a strong and stable banking system is a matter of public concern.

As part of their work, supervisors identify potential weak points in the system and take prompt corrective action. They need the freedom and flexibility to carry this out. The world learned this lesson all too well during the global financial crisis. Operational independence prevents supervisors from succumbing to “capture”—either by the industries they oversee or by political actors promoting self-interested agendas, but too many policymakers fell short of that standard in the run up to the crisis.

Since the crisis, operational independence became a top priority. For instance, in its 2010 report on enhanced supervision, the Financial Stability Board said operational independence of supervisory agencies “is critical to ensuring supervisory effectiveness.” The report highlighted the particular importance of independence as agencies’ roles widened to include authority to take countercyclical (and potentially unpopular) actions, for example, imposing more conservative underwriting standards in boom times or raising capital requirements.

Give supervisors a clear mandate, adequate resources, and strong governance structures.

Global importance

Strong supervision of systemically important financial institutions is particularly challenging given the size, complexity, and influence of these institutions. Yet global financial stability depends on it.

The Basel Committee on Banking Supervision agreed when it gave this issue greater prominence in the 2012 revisions to its core principles for effective banking supervision. The standards now require supervisors possess operational independence, transparent processes, sound governance, legal protection, and sound budgetary processes. Importantly, the standards also call for laws spelling out banking supervisors’ responsibilities and objectives, along with a requirement their objectives be published and that regulators be accountable through a transparent framework.

Simply put: Give the supervisors a clear mandate, adequate resources, and strong governance structures—and then hold them accountable for fulfilling their mission. Still, of the 29 Basel Core Principles, the IMF and the World Bank found progress to be weakest on independence and resources—to the extent that almost no country is fully compliant.

Unfortunately, compliance failed to improve in the years since the revisions to the Core Principles. Weak governance along with inadequate human and budgetary resources—both of which create opportunities for outside influence and pressure—remain the greatest shortcomings. This holds true whether or not the supervision function is inside or outside the central bank.

Every nation is vulnerable to such problems—not just emerging market economies, where institutional capacity may still be developing, but advanced economies as well. The joint financial sector assessment reports by the IMF and the World Bank often identify the potential for government interference in banking supervisors’ prudential decisions. In countries where state-owned financial institutions play dominant roles, maintaining the integrity of prudential decisions is vital.

Balancing act

Operational independence cannot be unlimited, of course, and supervisors must be held accountable for their actions or inactions. Yet diluting the regulatory framework, whether by easing up on supervision or failing to take corrective action when vulnerabilities exist, goes against the very mandate of banking supervisors.

Politicians and the financial industry must let banking supervisors do their jobs, giving them adequate resources to ensure the safety and soundness of the financial system and holding them accountable for discharging their prudential duties. If countries have sectors or industries that need to be nurtured, policymakers should use budget resources to support them, but they shouldn’t create market distortions, weaken prudential regimes, or foster weak institutions.

It’s easy to dismantle a regulatory regime or demolish a supervisory culture, but re-establishing a sound regulatory structure is a long process, during which time a nation’s financial system can be exposed to grave risks. A decade after regulatory lapses helped provoke the most painful financial crisis in a century, policymakers must renew their commitment to a vigilant, independent, and accountable supervisory structure.

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