Parliament on Thursday held the first reading of the constitution amendment 2020 to reduce powers of the Governor and deputy governor of Bank of Uganda (BoU).
Under the current law, Governor Emmanuel Tumusiime-Mutebile has been the BoU Board Chairperson automatically by his appointment as provided for under Article 161 (4).
Dubbed ‘The Constitutional Amendment Bill, 2020’ the Bill wants the Governor and Deputy Governor to cease heading the Board of Directors as chairperson and Vice Chairperson, respectively.
Instead Mr Mawanda proposes the Governor to remain a member of the BoU board. He suggests that President should appoint the Chairperson of the Board from among the members.
While handing over the report to the Speaker of Parliament Rebecca Kadaga in 2019, the then chairperson of Commissions, Statutory Authorities and State Enterprises (COSASE) Abdu Katuntu proposed a motion to reduce powers from the two most powerful leaders of the Central Bank in order to avoid other blunders which may arise in future and affect the economy.
Katuntu also said the constitution didn’t stipulate the specific functions of both the governor and his deputy which may also be a problem if not solved.
To solve the gaps that were highlighted by Cosase report, on 28th February 2019, Parliament passed a resolution in favour of some of the proposals that were made in the report such as amending article 161 of the constitution.
While tabling the bill on Thursday, Igara East MP Michael Mawanda told the House that the objective of the bill is to provide for a Chairperson of the Board of Directors of the Central Bank, not being the Governor as well as provide for the governor as the Chief Executive Officer of the Central Bank, to come up with the functions of the governor, the appointment and functions of the deputy governor and other related matter.
The Bill proposes that the functions of the Governor are being responsible for monetary policy; incurring expenditures for the Bank within approved budget by board and Parliament; organising and managing the bank; causing proper accounts to be kept of all transactions entered into by the bank; ensuring safe custody of all the assets of the bank and any valuables entrusted to the bank; and, ensuring proper discharge of duties of the staff and other employees of the bank.
Hon. Igara added that the current article 161 under chapter nine of the constitution about Finance only narrates the circumstance under which the governor can be removed from the position.
Its clause 4, also gives other power to them where it says that the office of the governor and deputy governor each shall be a public office and the governor and the deputy governor shall respectively be chairperson and deputy chairperson of the board.
According to Mawanda, the new amendment Bill 2020 has also other three insertions under article 161 which include;161A, 161B, 161C that explain in details about the roles of the governor and the deputy governor.
“There shall be a governor appointed under article 161 who shall be the Chief Executive of the Bank of Uganda. The office of the governor shall be a public office,” states the Bill.
The Bill was referred to the Committee on Legal and Parliamentary Affairs for further scrutiny before it is presented in the House for debate within 45 days.
