By our reporter

Bank of Uganda (BoU) which is under probe by the Auditor General over its past conduct in the closure of various banks recently ran to government and asked for shs500 billion for recapitalization.

Currently, the Central Bank is faced with deficits and losses worth shs474 billion.

On May 24, the Secretary to Treasury, Keith Muhakanizi wrote to Clerk to Parliament, explaining that BoU had registered a deficit of Shs17 billion and talked of operating losses of Shs457 billion on account of “monetary policy” and “currency costs”.

However, when Speaker Rebecca Kadaga forwarded the government request to the Budget Committee for scrutiny, MPs on the Committee led by Amos Lugoloobi rejected the request and the House agreed with them.

The MPs accused Finance ministry of “stampeding Parliament” and insisted that the losses at BoU were not fully explained, and that the request recapitalization came at the tail end of the budgeting process.

Others MPs demanded details on how the government intends to raise Shs504 billion for BoU recapitalization project.