Uganda returns Tropical Bank to Libyan control

By Samuel Sanya

Bank of Uganda Tuesday returned management of Tropical Bank to the Libyan Foreign Bank following a United Nation resolution to lift sanctions against the Libyan government and associated entities.

The Central Bank had hitherto appointed an interim board in March last year when the asset freezes were announced during the armed struggle to oust slain leader Col. Muammar Gaddafi.

Gerald Sendaula, the former finance minister has been retained as board chairman by the Libyan national transitional government with Osama Serrag, the former managing director replacing Prince Kassim Nakibinge.

"The interim board and interim senior management team which were appointed by the Bank of Uganda on March 25, 2011 have been relieved of their responsibilities," said Emmanuel Mutebile, the BoU governor in Kampala.

He added that the bank has been returned to Libyan Foreign Bank and that the previous Board of Directors and senior management team have been reinstated.

This will see Idris Elhalafi, Mossadek Elallaghi and Hasheem Alhelmi step back into active management of the bank as part of the Ugandan team takes up executive positions within the financial institution.

The Libyan Foreign Bank holds 99.7% of Tropical Bank with the Ugandan government retaining the remaining 0.3%.

Serrag revealed that the Libyan government is looking to grow the bank’s capitalization beyond the current sh250b balance sheet to show its commitment to doing business in the country.

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Imraan Abubakr | Johannesburg
There is some kind of vision in the whole process though............
Ssempijja francis | kampala
That is good what is going to happen to the current employees does government of uganda have any measures of protection?
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