Parliamentary committee sets up a team that will read all documents submitted by Bank of Uganda

By Edwin Muhumuza

The parliamentary committee on Commissions, Statutory Authorities and State Enterprises(COSASE) yesterday decided to set up a team that will read all documents that are mainly confidentially submitted from Bank of Uganda for purposes of scrutiny. Chairperson, Abdu Katuntu said there will be no photocopying or taking photos of the documents to avoid leaking them to the public.

‘I set up a two-man committee involving one person from the NRM and one from the opposition, Hon Twesiime and Hon Medard Ssegona. They are going to be handling the confidential issues supervised by the vice. However, this information is not restricted to them because even members may access it for purposes of reading. No reproduction, No photocopies or even phones…’Katuntu said.

Meantime, the committee also accused Bank of Uganda of wrongfully closing Teefe Bank in 1993. Hon. Katuntu said that the then Finance Minister Jehoash Mayanja Nkangi did not have the power to order its closure on grounds that he based on the Bank Act of 1963 instead of the Financial Institutions Statute of 1993.

And as legislators began to point out more faults and seemingly about to condemn the Central Bank officials, there were appeals for patience at this stage of the probe.

‘now that we have ascertained their responses about the law, we are not going to judge anything at this point, let’s go through the process until the end, before we can make conclusions because we shall have heard all the information we need’ Katuntu remarked.

Earlier Bank Of Uganda Governor Tumusiime Mutebile was faulted over wrong and contradictions in his response about the dates of the closure of Teffe Bank. What was reflected in the response was not accurate according to the committee chair, Abdu Katuntu who noted that it was closed on 4th November 1993, and not in February 1993 as reported.

This amid arguments about the different legal regimes they acted to close it;1969 Bank Act or the Financial Institutions Statute 1993.

Members expressed disappointment amid calls for the Bank officials to go on oath, thus invoking powers of a High court to penalize witnesses over the contradictions.

While members mulled at the circumstances surrounding the failure of the Teefe Bank, Bank of Uganda Governor Emmanuel Mutebile revealed that he would not intend to reopen any of the defunct banks. This while responding to queries from Aruu county MP, Odonga Otto. ‘In principal, I would never dream of reopening a bank I have closed before.’

The committee will meet BOU officials every day except Saturday and Sunday until they are done.

Man drags A-Plus funeral services, Bank of Uganda to Court over Semwanga’s burial

By Sania Babirye

A concerned citizen a one Abey Mgugu has  dragged A plus funeral management and the bank of Uganda to the high court seeking orders to open the grave of Uganda socialite Ivan Semwanga and retrieve the money buried with him.

Mgugu is also seeking court to have the would be retrieved   money sent back into circulation so that the currency of Uganda and others are respected.

Mgugu also wants declaration that  the bank of Uganda  willfully  and negligently failed to ensure that all currencies buried  with the deceased are respected.

The public was amazed when a group of people calling themselves members of the rich gang stormed the burial ceremony of the late Ivan in Kayunga district and threw money into his grave before and when he is being lowered into his grave on Tuesday  this week.

The currencies  thrown ranged from 20 and  50 000 while others were  South  African  rands  and USA dollars.

Court is yet to pronounce itself on the matter.

Bank of Uganda has reported drastic raise in Annual crop inflation.

By Alice Lubwama

Bank of Uganda has reported drastic raise in Annual crop inflation in the last three month.

This comes at the time when many part of the country is experiencing drought which is likely to last until the end of this year.

While releasing the monitory policy statement for October  2016, the governor bank of Uganda Prof Emanuel Tumusiime Mutebire said that in the last month food inflation have jumped from -1.9% to 5.1%.

He explained that the major cause of this the drought that affected affecting planting season and subsequently harvest has been extremely poor.

He however said that the trend is likely to change if rains start in the near future.

Meanwhile annual headline and core inflation declined to 4.1% and 4.2% in September respectively from 4.8% and 5% in august prompting bank of Uganda to lower central bank rate to 13% from the previous 14%.

Photo: Alchetron

BOU warns against fake 100,000 Ugandan shilling note is trending online

It has come to the attention of the Bank of Uganda that unknown individuals have created and are circulating an image of a bank note of UGX. 100,000 purportedly issued by Bank of Uganda. This is illegal.

The public is informed that the Bank of Uganda has not issued any new denomination of Uganda currency and does not plan to do so in the near future.

The individuals circulating these illegal images are hereby warned to stop doing so with immediate effect. Misinformation of this nature has the potential to cause confusion and disruption of normal economic activities especially among members of the public in rural areas.

The public is urged to ignore the image as a hoax and report known perpetrators to Bank of Uganda.