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 deputized by the Deputy Governor. The other members are the Secretary to the Treasury and directors from different departments in the bank.
A proposal is in the offing
to amend the Bank of Uganda (BoU) act to separate the bank management from the
board of directors. The Igara East County
Member of Parliament, Michael Mawanda who intends to table the proposal in a
private member’s bill, says they are intended to end the union between the Bank of Uganda Board and management
led by the Governor.
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 deputized by the Deputy
Governor. The other members are the Secretary to the Treasury and directors
from different departments in the bank.
Mawanda notes that as it stands, the
Central Bank Governor reports to himself since he chairs the board that should
supervise his work. He says that in case there is a problem in the management
of the Central bank, one can’t run to the board since it is chaired by the same
person who heads the bank.
He says the bill
also seeks to ensure that the Governor and board
report to an oversight body. “We hope it can solve all these impasses that have
been happening in the bank from the sale of the defunct banks, infighting among
others. For now the board of Governors is reliant on each other and this brings
out issues of accountability,” he said.
Mawanda says his draft bill is ready and
he is only waiting for the speaker’s green light to bring it before parliament.
“He (deputy speaker) asked me to submit it so
that he can have a look at the draft. But I expect to get feedback within this
week,” Mawanda told URN in an interview.
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.
Anthony Akol, the
Shadow Finance Minister, says although the proposed amendments are vital, it is
important to consider ethics and appointment of capable people to run the bank.