MPs Call For The Dismissal Of Central Bank Governor

  • Posted on: 27 February 2019
  • By: sanyu-fm-news


A section of Members of Parliament have this afternoon demanded the immediate dismissal of Central Bank Governor Emmanuel Tumusiime Mutebile and his Deputy Louis Kasekende over irregularities in the closure and sale of seven commercial banks.


The legislators who this afternoon entered day two of debate on the report compiled by the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) also recommend that all other Central Bank officials who participated in the process of closing the banks without adhering to the law be dismissed, prosecuted and compensate for any possible loss that could have been occurred by their actions.


The COSASE report follows investigations that were prompted by the 2017 forensic audit report by Auditor General, John Muwanga, which pointed out irregular operations in the Central Bank and the controversial closure and sale of the Commercial banks.


The affected banks that were closed between 1993 and 2016 include Teefe Trust Bank, International Credit Bank Ltd, Greenland Bank, Uganda Co-operative Bank, National Bank of Commerce, Global Trust Bank and Crane Bank Ltd.


In the report to parliament, COSASE observes that the Central Bank committed a number of irregularities in the closure of the banks including the absence of inventory reports, minutes, lapse in the security at the Central Bank that could have led to the theft of vital documents, sale of assets at a discount and lack of liquidation reports among others.


Francis Barnabas Gonahasa, the Kabweri County MP while discussing findings of the committee in the plenary sitting chaired by Speaker Rebecca Kadaga demanded for a change in the entire current leadership of the Central Bank and individual managers be investigated deeper.


He recommended neutral investigators like the Scotland Yard be invited and ascertain the extent of loss incurred  by the irregularities of officials in the Bank of Uganda to ensure that it is recovered.


Jonam County MP Emmanuel Ongiertho Jor also shared the same sentiments with his colleague Gonahasa saying that officers who did not carry out their mandate properly be suspended immediately.


Lira Woman MP Atim Joy Ongom, blamed Governor Emmanuel Tumusiime Mutebile for being responsible for the irregularities in the closure and sale of banks saying that he failed to supervise his officials.

Soroti Municipality Herbert Ariho, wondered how the Central Bank was able to sale banks like International Credit Bank (ICB), Teefe Trust Bank and Global Trust Bank (GTB) without inventory reports questioning how their value was ascertained.


He equally demanded that individuals in the Central Bank responsible for the mess should be responsible for compensation of shareholders of the affected banks.



Agago Woma MP Akello Judith Franca also demanded that whoever is responsible for the irregularities in the closure and sale of the defunct banks should take personal responsibility including repaying back money that was lost during the discharge of their duties.


She said that the current Bank of Uganda Board should be disbanded and the top management be evaluated and if not found worthy, they should be sacked immediately and able people are found.



Nansana Municipality MP Robert Kasule Sebunya cautioned that whatever parliament decides, they must not stampede Bank of Uganda saying that the way his colleagues were debating is like the commercial banks were free of fault.


The debate on the report closes on Thursday with Speaker Rebecca Kadaga saying that a section of MPs are still processing amendments to recommendations carried in the COSASE report.