The powers of the Bank of Uganda (BoU) Governor are set to be clipped if Parliament passes a private Member’s Bill that seeks to amend the Constitution as a way of streamlining the management of the Central Bank.
Mr Mawanda wants Article 161 of the 1995 Constitution amended by providing that the governor shall not double as the chairperson of the BoU board.
Then chaired by Bugweri County MP Abdu Katuntu, Cosase, after investigating the closure and selling of some commercial banks, including Crane Bank, National Bank of Commerce and Global Trust Bank, found that it was hard for the board to supervise the performance of the Central Bank since the Governor doubled as its chairperson
Now, in his Bill, Mr Mawanda wants the governor to remain a member of the board of seven people from whom a chairperson shall be appointed.
Clause 1 (3) of the Bill states; “the Governor and other members of the Board shall; (a) be appointed by the President with approval of Parliament, (b), hold office for a term of five years and shall be legible for re-appointment”.
Mr Emmanuel Tumusiime-Mutebile has been the BoU Board chairperson by virtue of his appointment as the Central Bank Governor under Article 161 (4) of the Constitution.
