Kampala, Uganda | THE INDEPENDENT | Michael Maranga Mawanda the Igara County East MP has been granted leave of Parliament to introduce the Bank of Uganda Amendment Bill 2019.
The bill seeks to separate the fusion between the Bank of Uganda (BoU) management from the board of directors.
It seeks to amend the Constitution following a resolution by Parliament on 28th February 2019 which sought to remove the Governor and the Deputy Governor from being chairperson and Deputy Chairperson respectively of the board of directors of the Central Bank.
It also seeks to provide for the functions of the Governor and to provide for the Governor as the Chief Executive Officer of the Central Bank and to provide for the resignation of a member of the board.
According to Mawanda, since Government delayed to bring constitutional amendment within the 90 days, Mawanda says the bill aims at saving the central bank. In his justification, Mawanda said says there is a problem of accountability which should be changed.
Jonathan Odur the Erute South MP who seconded the proposal says indeed the powers of the Governor and Deputy Governor needs to be checked.
Odur requested the house to allow Mawanda work on the bill because the Government has been slow.
David Abala, the Ngora County MP says there must be separation of Power, and the administration and policymaking cannot be fused together. Abala supported the move saying it will bring sanity to the Central bank.
The plenary chaired by Speaker Rebecca Kadaga approved the motion granting Mawanda leave of Parliament to proceed with the bill. Mawanda will now go-ahead to prepare the bill and present a certificate of financial implication.
According to the Bank of Uganda Act, the Central Bank Governor who is also the most senior officer in the bank also chairs the board of directors and is deputized by the Deputy Governor.
The other members are the Secretary to the Treasury and directors from different departments in the bank.
The proposed amendments come in the wake of scandals that rocked the central bank recently leading to a probe by the Committee on Commissions, Statutory Authorities and State Enterprise (COSASE) in the sale of several commercial banks.
In his report, the former COSASE chairperson, Abdul Katuntu recommended a complete overhaul of the bank and separation between the bank management and board. “In terms of the functions of the Board, the committee observed that the board didn’t adequately supervise management in the process of liquidating the financial institutions,” read the committee findings.