Citizen asks court to declare Uganda Shilling notes invalid
Combo: Deputy Governor, Bank of Uganda, Dr Michael Atingi-Ego and The late Bank of Uganda Governor, Prof Emmanuel Mutebile
What you need to know:
- The powers of a deputy governor only arise from the existence of the governor in office and serving as such there are no express statutory or constitutional functions of a deputy governor. Accordingly, a deputy governor can only carry out and execute the powers vested in that office only when the governor is in place exercising his powers, as the deputy governor only and impliedly implements what the governor has resolved upon or delegated unto him,” Mr Brian Kasajja states in the petition.
Hours after a private citizen went to court contesting the legality of Uganda’s currency notes, the Central Bank on Tuesday night said it was waiting to be served with summonses over the most unusual matter that has potentially far-reaching implications.
The bank faces accusations of operating illegally in the absence of its head, the governor, as provided for under the Constitution, with the private citizen demanding that all currency notes in circulation today must be withdrawn because they are in issue unlawfully.
In a terse email response to this newspaper, the director of communications at Bank of Uganda, Mr Kenneth Egesa, said: “We shall review the content of the plaint and the nature of the claim and take the appropriate action when we get served.”
It is alleged in the landmark suit that Uganda Shilling currency bank notes bearing the signature of Deputy Governor, Bank of Uganda (BoU), Dr Michael Atingi-Ego are not valid as required by law.
Speaking to just how sensitive the issue could turn out to be, the Uganda Bankers Association (UBA) on Monday evening refused to be drawn on the matter. Ms Sarah Arapat, the UBA chair, said she could not comment when reached for an opinion.
Mr Brian Kasajja has petitioned the High Court demanding that all the disputed bank notes be withdrawn. He points out that the Governor of BoU is not absent from office but dead, and that there is no statutory, constitutional or contractual legal possibility for the dead governor to be deputised by the living deputy governor.
“An order of mandamus doth issue compelling and ordering the respondent to give a 15 days’ notice in the Uganda Gazette to recall all Uganda Shilling bank currency notes bearing the signature of the Deputy Governor Dr Michael Atingi-Ego, in accordance with Section 23(3) of the Bank of Uganda Act, 1966, Cap.51 (as amended), and all Uganda Shilling bank currency notes bearing the electronic signature of the late Governor Prof Emmanuel Mutebile (RIP) on and upon payment of the face value as they suffer from acute impaired legal status and are legally contagious to the monetary economy,” he pleads.
In January 2022, Mutebile passed away in a Nairobi hospital, leaving the position vacant to-date. Being a constitutional office, President Museveni is supposed to appoint his replacement but he has, for unknown reasons, dilly-dallied over the exercise, leaving BoU leaderless and in limbo.
Mr Kasaija argues that the bank notes bearing the signature of Dr Atingi-Ego are not legal tender because the deputy governor is not authorised to sign them.
“The powers of a deputy governor only arise from the existence of the governor in office and serving as such there are no express statutory or constitutional functions of a deputy governor. Accordingly, a deputy governor can only carry out and execute the powers vested in that office only when the governor is in place exercising his powers, as the deputy governor only and impliedly implements what the governor has resolved upon or delegated unto him,” he states in his petition.
Issue
He alleges that the death of a BoU governor renders the deputy governor devoid of any constitutional or statutory authority to sign on currency notes. The same, he said, applies to the carrying out of any responsibilities as deputy governor since the governor’s office is not fully constituted, which has exposed the country all sorts of economic risk.
“The actions and omissions of the respondent (BoU) are detrimental to the entire country and economy hence posing a grave risk to the monetary system with high propensity to cause loss of public confidence in our currency notes which must be discouraged by court,” the court documents read.
The petitioner asks the court to quash all bank notes bearing the signature of Dr Atingi-Ego and “declare, proclaim and affirm that all actions and omissions of the respondent (BoU) done under Section 10 of the Bank of Uganda Act, 1966, Cap.51 (as amended), devoid of its lawful constitutional authority, ‘the board’ with a governor as its chairperson are ultra-vires, grossly unlawful, illegal and of no legal consequence or colour of resemblance”.
Mr Kasaija equally wants the court to declare that Uganda Shilling currency signed by the late Mr Mutebile is no longer legal tender since his electronic signature embedded in the bank notes is now invalid in law. He argues that there is no survivorship or inheritance attached upon death of the signature holder, and authority to sign must be revoked upon the death of a signee in accordance with provisions Section 69(a) of the Electronic Signatures Act, 2011.
The High Court will hear from the petitioner that the continued action of signing, continued issuance and continued circulation of Uganda Shilling bank notes signed by Dr Atingi-Ego amounts to a direct usurpation of the constitutional authority of the governor and his appointing authority, the President.
