Kasekende lauds Museveni as he bows out of BoU

By Our Reporter

The former Bank of Uganda (BoU) Deputy Governor Dr Louis Kasekende has appreciated President Yoweri Museveni for appointing to serve in that position.

“I express my profound gratitude to the appointing authority, H.E. President Museveni, for according me the opportunity to serve the Bank, and to represent the country in various continental and international assignments,” he said in his brief message to BoU staff.                                

“I also thank the various Ministers of Finance, Governors and the Board of Directors of the Bank for the support over the many years I have served the Bank.”

Museveni, according to industry analysts, has declined to renew Kasekende’s contract, saying the president is implementing the recommendations of parliament’s Committee on Commissions, State Authorities and State Enterprises (COSASE). One of the recommendations said that top BoU officials who mismanaged the closure and liquidation of seven commercial banks should be held liable.

Parliament recommended massive changes at BoU including changing the law to remove the governor and his deputy for BoU board of directors where they sit as Chairman and Vice Chairman. This could separate management and supervision functions of BoU and therefore efficiency and transparency.

COSESE which investigated the closure of seven commercial banks by BoU confirmed irregularities in the dissolution of banks, exposed mismanagement at the Central Bank and proposed key reforms while providing wholesale recommendations against BoU officials guilty of the prevailing mistakes.

In its report, COSASE report recommended that some shareholders be compensated for the losses. It also recommended that BoU officials (without naming them) who committed the mistakes, be held personally responsible for the mess involving the closure of the banks. The banks closed were; Teefe Trust Bank, Greenland Bank, International Credit Bank, Cooperative Bank, National Bank of Commerce, Global Trust Bank Uganda and Crane Bank Limited.

According to analysts, the Principal of Makerere University Business School (MUBS), Prof Waswa Balunywa, or Dr Richard Byarugaba, the managing director of National Social Security Fund (NSSF) could replace BoU Giovernor Emmanuel Tumusiime-Mutebile.

The 61-year-old was appointed to the Deputy Governor position back in January 2010 but writing to BoU staff he said: “As you already know, my contract as Deputy Governor of Bank of Uganda came to an end on January 14, 2020. It has been a great honor to serve in the position of DG for the last 10 years. “Last but not least, I would like to thank you all for the love and tremendous support during my employment with BoU. Excluding the years I was at the World Bank and the AfDB, I have spent close to thirty years in total with BoU, thus many of my colleagues have become friends.”