To begin with, the Governor of the central bank of Uganda is the chief executive officer and chairman of the board of directors of the Bank of Uganda.
The former governor, Emmanuel Tumusime-Mutebile was the longest-serving central bank governor in Uganda and Africa. Mutebile was a senior economist and banker with vast experience. It’s now 6 months from the time he died. The office of the governor bank of Uganda has since then become vacant.
The current deputy governor Mr Michael Atingi-Ego also now doubles as the central bank’s acting governor per the constitution and Bank act. Uganda has many suitable candidates to fill the office. These include the current deputy governor Mr Michael Atingi-Ego and former deputy governor Mr Louis Kasekende. The list is incomplete without Mrs Allen Kagina, Dr Joseph Muvawala, and Prof waswa Bulunywa, among others. The president is advised to appoint a competent person who will effectively control the current economic extremes the country faces now than follow political orientations.
The tasks of a central bank governor are critical to those of the central bank. Without a substantial bank governor, the central bank is incapacitated in various ways to expedite its functions both constitutionally and financially.
Some of these include supervising and making key decisions in the banking sector. He also presides over the meetings of the bank’s board of directors.
The president according to the constitution is the appointing authority in this equation with approval from parliament. Why is this major appointment to the central bank not executed given the relevance and roles a bank governor plays in the banking industry and economy at large?
It’s therefore incumbent upon the appointing authority to fill this vacancy with the most suitable person. The need to strike a balance between regional, tribal and religious interests while drawing his political cards closer to his chest- as usual, could be one of the reasons for the delay. In addition, the fear and assumption of being victimised for not appointing the current deputy governor stands out tall in case Mr Atingi-Ego is not the favourite choice.
The president recently declared Uganda a middle-income economy while delivering the state of the nation address at Kololo in June. Asserting government data was satisfactory Uganda attained the required economic threshold by the world bank for a country to be declared a middle-income economy.
The world bank quickly cancelled the president’s report thereby placing Uganda under lower-income economies. The president will certainly face hardships in challenging the world bank on such matters more so without a central bank governor in place.
Public positions have always fallen vacant before but suitors are appointed in the shortest time possible with some contracts being renewed on the same day they expire. Recently the secretary to the education service Commission Dr Asuman Lukwago confirmed Dr Kajubiri’s term of office expired on July 5 and was immediately renewed by the president. Dr Kajubiri is a sister to President Museveni.
Mr Museveni also extended contracts for five police directors at the rank of Assistant Inspector General of police recently. The latest on the list is the new appointment of Bri Robert Freeman as army court boss replacing Lt Gen Andrew Gutti in the shortest time possible.
Why is the president not handling the Bank of Uganda Governor issue with the same agency it deserves like those mentioned above and why has it taken him long to fill the vacancy unlike before? Is it more of a political question than an economic one? What’s the time frame for appointing one? The constitution and bank act have been tested to give answers to these questions calling for amendments if they fail.
Uganda is currently the only country in Africa without a central bank governor.
It’s therefore a desperate call for one.
Concerned citizen
jpkamwada@gmail.com
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