The court found that Crane Bank majority shareholder were non-Ugandans based in Mauritius who under the land Uganda were not legible to holding freehold registered land.
BoU Governor Emmanuel Tumusiime Mutebile issued the warning on Thursday while appearing before Parliament’s National Economy Committee, where he was summoned to discuss the impact of the COVID-19 pandemic on the economy.
BoU Governor Emmanuel Tumusiime-Mutebile said even this growth will depend on how the economy is opened up from the lockdown imposed to stem the spread of coronavirus disease. It would also depend on how the public will comply with the social distancing rules to ensure cases don’t surge again calling for more lockdown, Mutebile said
In just one month between February and March 6, 2020, investors withdrew at least 165 billion Shillings from the country. Of this, at least 59 billion Shillings was in government securities, while 105.7 billion Shillings had been placed in commercial banks in the country as deposits.
The lawyers led by Faisal Mularila and Alvin Jabbo noted that the decision to revoke the company's license stemmed from allegations by Bank of Africa against the bureau for alleged involvement in illicit transactions, which caused the bank a loss of colossal sums of money.
Speaking through a webinar with the Rotary Club of Kampala South on Monday evening, Dr Tumubwine Twinemanzi, the BOU executive director for supervision, said banks have to earn interest on that money they lent out even when payments are frozen during the coronavirus crisis.
In the audited accounts for 2019, it was revealed that the bank had been undercapitalized up to a tune of 3.8 billion Shillings. This means Tropical had only 21.2 billion Shillings of the 25 billion minimum capital required.
According to KPMG, an audit firm that audited the bank’s accounts, Tropical bank’s situation points to "significant doubt on Tropical bank Limited’s ability to continue as a going concern”
BOU reports that there has also been a decline in exports to the regional markets, which have been Uganda’s key destination for most goods.
Here, one key culprits have been milk and sugar which saw the heaviest decline due to trade disputes with Kenya and Tanzania. A drop in the prices of milk saw Kenya stop Uganda’s milk – especially Lato Milk – to help depressed prices at home.
The Microfinance State Minister, Haruna Kasolo Kyeyune told Parliament that he has alerted the president on the matter and will respond soon. He also allayed the fears of the legislators, saying all is moving on well in the Central Bank.
The directive follows the expiry of Dr. Louis Kasekende’s contract on 18th January 2020. Dr. Kasekende was serving under Bank of Uganda Governor Prof. Emmanuel Tumusiime Mutebile.
The expiry of his contract completed a decade of his service in the same position and making him the longest-serving deputy governor and Deputy Chairperson of the Bank of Uganda Board.
Last August, Bank of Uganda said the country's capacity to manage its growing public debt will depend on the country's ability to export oil by 2023. This target will mostly depend on how fast government can reach common ground with oil companies.
In a notice, Dfcu publishes 16 branches it has vacated, including the main branch at Kampala road. Others include Hoima branch, Arua branch, Ibanda branch, Ntinda, Mbrara, and Kikuubo, and Kireka branches. In total, the bank took over 48 properties from Crane bank.
According to the 202/2021 financial year National Budget Framework Paper, government indicates that it needs Shillings 481.7 billion to recapitalise Bank of Uganda. The proposal became a subject of contention when the Finance and Planning State Minister, David Bahati appeared before the budget committee to defend the National Budget Framework Paper.
The query is carried in her response to the National Budget Framework Paper for the coming financial year 2020/2021. The government indicated in the framework paper, that up to 482 billion Shillings will be needed to recapitalize the Central Bank next financial year.
Appearing before the Finance Committee on Wednesday chaired by Rubanda East MP Henry Musasizi, the Minister of State for Finance David Bahati was questioned about the continuous recapitalization of the Bank.
In a statement issued on Tuesday, the BoU Governor, Emmanuel Mutebile said: "The public is advised to accept only those notes that bear features as designed by Bank of Uganda."
The government planned to attract more one million tourists this year on top of the 1.8million people received in 2018. But the Central Bank says after ten months, only about 1.2 million tourists had entered Uganda.
