Bank of Uganda appearing before the parliamentary committee on Commissions, Statutory Authorities and State Enterprises (COSASE)
Today, the 28th of May 2019, Bank of Uganda (BoU) led by Dr. Louis Kasekende appeared before the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) to respond to the audit queries for the financial year 2017/18.
The committee chaired by Mubarak Munyagwa, came to a stand still after BoU deputy Governor, Louis Kasekende failed to produce a letter from Muhakanizi allegedly appointing Governor, Emmanuel Mutebile as the accounting officer of the Central Bank. This follows Dr. Kasekende’s submission, that they had a letter from the permanent secretary to the treasury -Muhakanizi giving powers to the governor as the accounting officer.
Hon. Munyagwa in his submission noted it was disturbing to understand how possible it is, for the Governor BoU to be the chairman of the same board which is supposed to supervise him. He observed that most government agencies have accounting officers, but the Bank of Uganda has no accounting officer. The committee therefore resolved to invite the Permanent Secretary to the Treasury – Mr Keith Muhakanizi to address the Committee on whether BoU has an accounting officer, as they were tired of a situation where There was no one to be held accountable.
The Committee also raised the question concerning the appropriation of funds. According to the committee they had gotten information that BoU was directly spending monies which had not been appropriated by Parliament. Dr. Kasekende in his in response, said that whereas it is true that the Bank of Uganda does not have the powers to appropriate funds for itself, the bank under Section 16 of the Bank of Uganda Act states that, “any net profits or losses from the bank’s operations shall be shared between the bank and the Government in respective proportions of 25% and 75%.”. BoU is therefore allowed to spend monies received as the profits before it is deposited to the Consolidated Account.