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MPs Oppose UCB Sale

By Vision Reporter

Added 23rd July 2001 03:00 AM

SOME Members of Parliament have drawn a motion seeking to stop the re-sale of Uganda Commercial Bank majority shares (51%) to the private investor.

By Felix Osike SOME Members of Parliament have drawn a motion seeking to stop the re-sale of Uganda Commercial Bank majority shares (51%) to the private investor. The Samia Bugwe North MP Mr. Aggrey Awori, is set to move the motion this week, urging the Government to, "reserve at least 51 percent shares for the general public to be floated on the local stock exchange." UCB is currently under statutory management of the Bank of Uganda following its aborted sale to a Malaysian company, Westmont Land Bhd (Asia) in 1997. Awori's motion is signed by 10 MPs, Charles Bakkabulindi (workers), Steven Bamwanga (Ndorwa west), Otto Odonga (Aruu), Kibale Wambi (Budadiri East), Rex Achilla (Jie), Sammy Ogwel (Moroto Municipality), Zziwa Margaret (Kampala), Jacob Oulanyah (Omoro), Norbert Mao (Gulu Municipality and Alex Onzima (Maracha). The Finance Minister, Gerald Ssendaula announced in his budget speech last month that UCB would be re-privatised to a strategic investor with reputable banking credentials. The Government envisages that a minority stake (49%) will be made available to the Ugandan public through the stock exchange, subsequent to re-privatisation. "Government has lost nearly US$10m of public funds in various futile attempts to sell UCB privately notwithstanding protests from Parliament and the general public replete with cases of corruption at the highest level in government circles," the motion reads. The motion also says UCB woes have been due to mismanagement rather than ownership and that the Government had ignored pleas by MPs. Ends

MPs Oppose UCB Sale

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