By Kagenyi Lukka
Professor Emmanuel Tumusiime Mutebile, 69 is the 9th governor of the bank of Uganda.
He was appointed for a five year term on 11th January 2001. His tenure was subsequently renewed in 2006, 2011 and 2016 respectively.
Prior to his appointment as governor, Mutebile served as the secretary to the treasury/permanent secretary in the Ministry of Finance, Planning and Economic Development between 1992 and 2000.
Prior to this, he held several top government positions such as deputy principal secretary to the president 1979-1980, Acting under secretary in ministry of finance 1981, Chief government planning economist in 1982 and permanent secretary in the prime minister’s office in 1985, among other positions.
Worth noting is that he has been on the board of the bank of Uganda since 1992. This makes him largely accountable for whatever mess that has been at the institution.
On the other hand, His deputy and nemesis Dr Louis Kasekende served as the deputy governor between 1999 and 2002. He would later quit for greener pastures and only returned to the same position in 2010 which he holds until now.
It should be noted that Emmanuel Tumusiime Mutebile is the chairman of the rubberstamp board of the bank of Uganda, and is the bank’s top manager with Kasekende deputizing him in the two roles.
It is thus; wise to aver that the duo can’t be separated from the ineffectiveness of both management and the board. They make management decisions, present them to the board they chair and deputize accordingly and disguise to implement them.
The recently released auditor general’s report about defunct commercial banks is just sufficient ground for the two to be retired, or to choose to resign (retire themselves because their preponderance on the banking sector seems to have yielded appalling consequences including the folding of seven commercial banks.
The seven banks in question include Teefe Bank, International Credit Bank Limited (ICBL), Greenland Bank, The Cooperative Bank, National Bank of Commerce (NBC), Global Trust Bank (GTB) and Crane Bank Limited (CBL).
Of these seven, crane bank could have been saved of the two actors had not acted followed guidelines, rules and regulations especially the Financial Institutions Act of 2004,sections 90(4) and 89(5).
Bank of Uganda didn’t have a detailed plan detailing efforts to return the bank to compliance with prudential standards.
The absence of such a plan by the two actors is noncompliance with the law is abuse of office by the two actors.
The two managers were also found to be inefficient and incompetent by the auditor general’s findings. For instance, there was unreasonable delay in disposing assets of some closed banks (ICB, GBL and Cooperative bank).
It took the central bank almost 10 years to sell(on discount) the assets of these banks causing loss to the banks, creditors and shareholders. “Further, it was noted that there was a delay in disposing the assets as the assets were sold in 2007 despite the banks closing in 1998 and 1999.”
Throughout the whole exercise of closing banks, the two had no guidelines to for determining the buyer; there is less or no accountability for funds injected in banks (e.g. 3.5bn to pay depositors of ICB, Co-op and GBL) and there is no valuation of assets and liabilities especially for cbl.
The conduct of the two leaves a lot to be desired. The two are either tired or incompetent and can only add so much to the banking sector that needs yesteryear’s attention.
The appointing authority should retire two to save the sector from the much undesired shock.
Kagenyi Lukka is a current affairs analyst and the next MP, Ikiiki.