Kampala, (UG):- Members of Parliament on the Committee of Commissions, Statutory Authorities, and State Enterprises (COSASE) have raised serious concerns over the prolonged delay in appointing a substantive Governor for the Bank of Uganda (BoU), three years after the death of Emmanuel Tumusiime-Mutebile.
Lawmakers also grilled the Central Bank on its handling of a UGX 60 billion fraud incident that saw funds erroneously transferred to accounts abroad.
During a meeting on Tuesday, December 17, 2024, to review the Auditor General’s 2023/24 report, COSASE Chairperson Medard Sseggona questioned Deputy Governor Michael Atingi-Ego on why he had not advised President Yoweri Museveni to expedite the Governor’s appointment.
Sseggona argued that the prolonged vacancy undermines governance at the Central Bank, especially as the Governor serves as the Chairperson of the BoU Board.
“The Deputy Governor has a duty to remind the President about this vacancy. You can’t appoint Board members and forget the Chairperson,” Sseggona said. He added, “Maybe you are comfortable with this absence, but it’s not my place to judge.”
Buzaaya County MP Martin Muzaale echoed Sseggona’s frustrations, faulting the BoU Board and management for failing to prioritize the matter. “The public is concerned that the Governor’s seat has been vacant for three years. As leaders, you should have taken this up with the President a long time ago,” Muzaale asserted.
Nakaseke Central MP Allan Mayanja pressed Atingi-Ego on whether he would accept dual responsibilities should his term, which expires in April 2025, be renewed. “Are you ready to occupy both offices without a substantive Governor in place?” he asked.
In response, Atingi-Ego declined to comment on the delay, stating, “I am the Deputy Governor, and these are Constitutional matters beyond my competence.”
BoU Board member Didas Nkurunziza cited Article 161(1) of the Constitution, which allows a Board to function despite vacancies.
However, Sseggona pushed back, arguing that such provisions apply only to fully constituted Boards. “The Constitution empowers the appointing authority to fill the vacancy. So, why hasn’t the Chairperson of the Board been appointed yet?” the Busiro legislator retorted.
BoU Denies Hacking Claims, Details UGX 60Bn Fraud
The MPs also demanded answers over the UGX 60 billion fraud, involving erroneous international debt payments. Atingi-Ego denied allegations that the Bank of Uganda’s systems had been hacked, clarifying that investigations found no evidence of a breach.
“We conducted a thorough review, and there is no proof that our systems were hacked,” Atingi-Ego stated. He explained that the fraudulent transfers involved two transactions: US$6.134 million intended for the World Bank, which was mistakenly sent to Road Way Company Limited in Japan on September 12, 2024, and US$8.596 million meant for the African Development Fund, also transferred to Japan on September 20, 2024.
The Deputy Governor said the anomalies were flagged following an inquiry by the Ministry of Finance. “We convened a meeting with the Ministry, engaged our Chief Internal Auditor, hired an independent forensic audit firm, and reported the matter to the Police for further investigation.”
However, MPs were dissatisfied with Atingi-Ego’s refusal to disclose full details, with Kyadondo East MP Muwada Nkunyingi accusing him of hiding behind ongoing investigations.
“You were invited to answer questions. Is it proper to defer to other investigative bodies when this Committee has powers equivalent to the High Court?” Nkunyingi asked.
In response, Atingi-Ego revealed that the Bank had managed to recover a substantial portion of the funds but lost approximately US$391,000 in transaction fees. “Of the US$8.596 million, we successfully recovered US$8.205 million with assistance from a UK-based bank. The recovered funds have since been credited back to the Consolidated Fund,” he explained.
He acknowledged the seriousness of the incident, noting that it had triggered international scrutiny. “Some of our correspondent banks raised concerns about the integrity of our systems, and we had to assure them that the Bank of Uganda’s operations remain secure,” he said.
MPs Call for Urgent Reforms
The session exposed governance gaps at the Bank of Uganda and underscored the need for heightened oversight to prevent similar financial anomalies. MPs demanded swift measures to appoint a substantive Governor and ensure transparency in ongoing fraud investigations.
“The delay in filling the Governor’s position compromises the Bank’s governance and stability,” Sseggona concluded. “It is our responsibility to demand accountability and safeguard public funds.”
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