Bank of Uganda deserves a lot better

The Central Bank is in the news again, for the wrong reasons. The front page headlines of the Saturday Monitor and Saturday Vision of June 15 tell of a gross, unbelievable and indefensible story unfolding at Bank of Uganda (BoU).
According to Saturday Monitor, the Anti-Corruption Unit (ACU) of State House, led by Lt Col Edith Nakalema, raided BoU headquarters on Kampala Road in the morning of Wednesday, June 12, and arrested four unnamed bank officials in connection with a currency printing scandal.

A BoU press release signed by the governor, Mr Emmanuel Tumusiime-Mutebile, published in the Saturday Monitor provides background to the breaking news. According to the brief press statement, on April 27 BoU received a consignment and “during the verification process, BoU staff reported an anomaly in the inventory of the expected consignment” which prompted the governor to request ACU to investigate the matter.
The governor’s statement concludes by reassuring the public that, “we are committed to maintaining the integrity of its operations and are working with the relevant authorities to bring this matter to its logical conclusion.”

I am afraid it’s going to be a difficult and tall order for the governor to convince Ugandans, especially wananchi that after the recent Cosase hearings, chaired by Mr Abdu Katuntu, that the Bank of Uganda has any iota of integrity left to maintain, let alone to write home about. At a personal level, I would give the governor benefit of the doubt, but I am likely to be in a minority.
This is not the first time for a major scandal to hit and rock the Bank of Uganda. Almost 10 years ago, in 2010, the governor lamented and confessed in an interview with a leading British newspaper that he released, under pressure and in violation of the Constitution of Uganda, $740 million (Shs1.7 trillion) to Sabalwanyi allegedly to purchase six Russian made Sukhoi SU-30 jet fighters procured to protect Uganda’s oil. It’s laughable and unacceptable to men and women of goodwill.

A friend, who is a scholar of strategic studies, told me that there is no way six Sukhoi jet fighters would cost so much. In other words, the alleged cost was either inflated or the information provided to BoU is fraudulent. To the best of my knowledge, no documentary evidence has ever been provided by the buyer to Parliament as verification of what appears to be a dubious transaction.
Against this background, many Ugandans believe that information which has so far emerged in the public domain, much of which has been published by the media, including Sunday Monitor of June 16 is only a tip of the iceberg.

As if the situation prevailing at the Central Bank is not bad enough already, New Vision of June 13 reported that Mr Keith Muhakanizi has been tipped to succeed Mr Tumusiime-Mutebile as BoU governor.
According to a story titled, “Museveni renews Muhakanizi’s contract,” the newspaper claims to have “established that President Museveni has approved a three-year extension of the contracts of the Secretary to the Treasury and Permanent Secretary of the Finance ministry, Keith Muhakanizi and his deputy, Patrick Ocailap.”

“Insiders say Ocailap might replace Muhakanizi when their new contracts expire. They said Muhakanizi is likely to replace Prof Emmanuel Tumusiime-Mutebile as governor of the Bank of Uganda.”
With all due respect, Muhakanizi, who has in my considered opinion underperformed as Permanent Secretary, would be the wrong man for the top position at BoU. I hope MPs will not approve such appointment if it comes to pass. Since there is no smoke without fire, Ugandans should prepare for more bad news from the Central Bank.
The Bank of Uganda and, by extension, the people of Uganda deserve a lot better at the helm of the Central Bank. For God and my Country!

Mr Acemah is a political scientist and retired career diplomat.
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