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OPINION



By Rev Jasper M. Tumuhimbise

In recent years, there has been growing concern among Ugandans of goodwill over large sums of cash being kept in homes or transported in towns, including Kampala.

The recent incident is of an MP who ‘forgot’ sh118m in his car after taking it to the washing bay around Rubaga, Kampala and young men at the washing bay chose to take off with the money.

They were arrested (New Vision, Tuesday, March 20). The Police is normally eager to arrest the offenders that stole (and that is right), but I wonder whether the same zeal is available to find out the source of these monies!

Individuals and groups carrying substantial amounts of money in cash ought to spark serious debate about the potential implications for security, tax collections, money laundering, bribery, financial transparency, terrorism, and the overall health of the economy.

If this trend was reducing, I wouldn’t be worried. But these instances of individuals carrying significant sums of money have become increasingly common, with reports indicating that billions of Ugandan shillings are being transported in the form of cash bundles and banknotes.

These occurrences ought to raise eyebrows and lead to questions about the source, process, destination, and legality of these funds. I read an article recently on terrorism money going to the Middle East through Uganda from UK. What a tragedy!

The surge in cash transportation is a security concern and huge risk for the one carrying it, their family and more so among law enforcement agencies and the general public. This potentially poses four main risks: theft, robbery, tax avoidance and evasion, and illicit activities. Authorities need to heighten vigilance to prevent criminal activities and ensure the safety of all citizens.

The other point about prevalence of cash transactions is the issue of financial transparency and accountability. In 2009, when Damian Akankwatsa, the National Forestry Authority ex-ED cried that the wife had stolen his sh900m stacked under the pillow, while others were cursing the wife, I at that time was among those (if more than one) who called the Inspector General of Police to ensure that he explains the source.

The story changed. Large amounts of cash in this country is being circulated outside of formal banking channels, thus undermining efforts to combat money laundering, tax evasion and corruption. The concern is how to monitor and regulate cash transactions that are liquid to promote greater transparency and accountability in financial dealings. The influx of such cash into circulation has broader economic implications for this nation.

While cash transactions play a vital role in facilitating everyday commerce, excessive reliance on cash can hinder financial inclusion, investigation trail, limit access to banking services, and impede efforts to modernise the economy. In fact, it is the quickest way of cleaning it. That is why land transactions face inflated values and most of them are done with hard cash.

There is a need for policies that promote the adoption of digital payment solutions beyond certain limits and to encourage financial literacy to enhance economic efficiency and resilience.

In response to these developments, government authorities including the Financial Intelligence Authority, URA, Police and the IGG should wake up to do their work using the available regulatory environment — Anti-Money Laundering Act (2013), Anti-Corruption Act (2009), among others. Measures such as increased surveillance, enhanced regulatory oversight, and public awareness campaigns should be considered to mitigate risks and promote responsible financial practices.

How do we end this? All officials who have had their hard cash stolen should explain the source. MP Medard Segona, the COSASE chair, should explain where he drew the money from (sh118m); Ambassador Barbra Nekesa should explain the source and process of sh2.24b stolen from her home. A Chinese who last year was carrying sh200m should explain how much is allowable to be carried in China! among others. As the country grapples with these challenges, it is imperative for all stakeholders, including government agencies, financial institutions and citizens to work together to foster a safer, more transparent, and resilient financial environment for the benefit of all Ugandans.

The writer is GCEO, clergy and statistician working in Church of Uganda