MPs want Mutebile to resign

MPs have demanded the resignation of Central Bank Governor Emmanuel Tumusiime-Mutebile following revelations that he authorised the withdrawal of money from the country’s foreign reserves to buy fighter jets.

The lawmakers on the committees of Public Accounts, Finance and National Economy said Mr Mutebile should be pushed for committing what they have described as “economic crimes”.

They accused the Governor of complicity and for raiding the country’s foreign reserves.

“Taking money from state coffers without the knowledge of Parliament is a serious offence and more so criminal. Mr Mutebile should be arrested just like any public officer who abuses public funds,” Ms Cerinah Nebanda (NRM, Butalejja Woman) said.

Eroding independence
Mr Mutebile earlier told MPs that he dipped into the country’s foreign reserves upon agreement with President Museveni that tax receipts from oil exploration would be used to replenish the key holding.
MPs who talked to Daily Monitor yesterday also accused President Museveni of eroding the independence of public institutions.

They said the President’s involvement in allegedly raiding the Consolidated Fund, lays ground for an inquiry into whether he overstepped his authority.

“It was very wrong for the President to direct Bank of Uganda on fighter jets. Such expenditures must be authorised by Parliament not President Museveni,” Mr Vincent Kyamadidi (NRM – Rwampara).

Leader of Opposition Nandala Mafabi said President Museveni and Mr Mutebile committed an economic crime and that they will have to face the law for their actions.

“Bank of Uganda is supposed to have only two customers: The Treasury and commercial banks. But these days, President Museveni has become a daily customer of this bank, he picks money to pay jets, business people and as a result our economy is suffering. He does not care about Parliament anymore and this is unfortunate.”

MP Maxwell Akora (UPC, Maruzi County) warned of further economic slump if the financial indiscipline at the Bank continues.

“The President and Governor should be held responsible for this mess. Unless they print more money, if the construction of Karuma projects kicks off, we are going to face a crisis. There will be no foreign exchange to ease the pressure on the depreciation of Shilling.”

Meanwhile, MPs Mbagadi Nkayi (NRM, Kagoma) and Benson Obua Ogwal called for prudent management of public finances.

Mr Obua said the Governor should explain why he authorised illegal expenditures, contrary to Article 162 (2) of the Constitution which states that the Bank, in its operation, shall not be subject to the direction or control of any person or authority.

Chairperson of the Local Government Accounts Committee Jack Sabiiti said: “The President, who directed the Governor, shall also be liable to the proceedings in courts of law when he leaves office.”
Asked whether Mr Mutebile’s action tantamount to an economic crime, former Shadow Finance Minister Oduman Okello, who spent most of his time in the Parliament highlighting financial indiscipline at Bank of Uganda, said: “It’s actually economic terrorism, and the culprits should be interdicted internationally.”

Economic crimes refers to illegal actions undertaken by perpetrators to make money for themselves or illegal actions undertaken principally by individuals to further the aims of their company or other organisations and individuals.

Mr Oduman added: “Mutebile and Museveni are the two top conspirators. Why is Mutebile more than willing to appear in Parliament for the first time ever, after resisting summons in the 8th Parliament when these issues were noticed? His knees have now been weakened ...”

“As for Museveni, because he is President, there is only option; the public should notice who is responsible for what we have become- paupers because of financial indiscipline and the blatant abuse of public funds kept in Bank of Uganda.”

Bank of Uganda Communications Director Elliot Mwebya yesterday said whether the Governor committed economic crimes or not, that is the opinion of MPs.

In April, Opposition MPs walked out of Parliament protesting Speaker Edward Ssekandi’s refusal to allow a motion seeking to block a supplementary expenditure of Shs1.7 trillion for the purchase of fighter jets and other military hardware.

What the law says
The supplementary was declared illegal because it was far beyond the required three per cent threshold provided under the Budget Act 2001.

Article 154 (3) of the 1995 Constitution says, No monies shall be withdrawn from the Consolidated Fund unless the withdrawal has been approved by the Auditor General and in the manner prescribed by Parliament. Section 4(2) of the Public Finance and Accountability Act, 2003 the right to authorise public expenditures vests solely in Parliament through the enactment of Appropriation Acts.
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