A Bank of Uganda Supremo King-Pin to Step-Down

By Our Business Correspondent

DAILYNEWS UG |Kampala, Road|

A Bank of Uganda top honcho has offered to resign from his post while still serving his term. This is according to people who familiar with the matter.

However, the Central Bank linchpin cannot be identified at the moment because the discussions are very confidential.

The move comes weeks after the head of a Commercial Bank’ DFCU Bank Chief, Juma Kisaame was fired and is due to be replaced by Mathias Katamba, the current and outgoing Managing Director of Housing Finance Bank. It must be noted that the Central Banks mandate is to control and regulate commercial Banks. Its not yet confirmed whether Juma Kisaame’s departure is linked to the BoU “big-man”.

Bank of Uganda headquarters in Kampala. File

It’s unclear what the government’s response to the “Top Boss” resignation will be. MPs have recently been baying for this man’s blood as he one time called Parliament MPs “ignorant and dense”.

The BoU official at one time clashed with Members of Parliament over the Shs142 billion BoU compensated Kampala businessman Hassan Basajjabalaba for loss of city markets. The MPs had wanted him out of office but Museveni intervened to save him, but the president blamed him for paying Basajjabalaba without consulting him. He would later refer to the MP’s as ignorant and that only God would remove him from his job at BoU.

A spokesperson for the central bank declined on Monday to comment on whether this “big-man” had offered to resign.

An official at the Ministry of Finance and Economic Planning and Development also declined to comment and was tight lipped about this.

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Apparently, this BoU top official is likely to hand in his resignation document to President Yoweri Museveni sometime during this week but this will have to be confirmed.

The Central Banker began his five-year term in this position in January 2010. This marks the second time that he is appointed to this office, having served in the same capacity from 1999 until 2002.

The BoU “big-man” pending departure comes at the time when BoU is entangled and enmeshed in legal ping-pong clashes mostly with Directors of Crane Bank, a bank that was fraudulently taken over by DFCU. This is an issue that has recently been pointed out by Uganda’s Auditor General.

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The Central Bank Boss recently battled with Members of Parliament who wanted to know why he was blocking BoU Audit. MPs asked him to should explain his motive in attempting to block BoU Audit.

The overs zealous Bank of Uganda Boss with his closest confidant Justine Bagyenda (former executive director, commercial bank supervision) presided over the reckless give away of the only local commercial bank, Crane Bank at a paltry credit of Uganda shillings 200 billion.

Other banks this “big-man” folded include but are not limited to; GT bank in 2014, National bank of commerce in 2012 and Teefe bank. Crane bank case is the most outstanding of all the banks that were hurriedly taken over. Crane bank had built a sound clientele of over 170,000 depositors, had a wide branch network of over 48 branches and its asset base had sprung up to over Uganda shillings 1.3 trillion at the time BoU Honchos decided to kill and bury Crane Bank.

 

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