Kadaga talks tough over AG skipping plenary

KAMPALA - Speaker of Parliament, Rebecca Kadaga, has taken exception to the repeated absence from the House by Attorney General, William Byaruhanga (pictured) and his deputy, Mwesigwa Rukutana during legislation, saying it's making the House's work hard.

"The issue of the Attorney General and his deputy absenting themselves from parliament is a serious matter.

"The chairperson has been struggling to define some legal terms in the Bill. We could have benefitted from the Attorney General's input," Kadaga said this week during a debate on the Insurance Bill, 2016.

The chairperson of parliament's finance committee, Henry Musasizi, who is an accountant by profession, had earlier had his hands full defining some legal terms in the Insurance Bill.

Kadaga said the House had a clogged legislative agenda, revealing that three pieces of legislation - Insurance Bill 2016, and amendments to the Anti-terrorism Act and Anti-money laundering (Amendment) Bill, 2015 had to be enacted before the end of the week.

However, both Byaruhanga and Rukutana missed the morning session, forcing MP Joseph Ssewungu to raise concern about their absence.

During the poorly attended session on Tuesday, only Kadaga and MPs Veronica Bichetero and Mathias Mpuuga were lawyers - making the services of the Attorney General badly needed.

According to the constitution, the Attorney General is government's legal adviser with a mandate to represent government ministries, agencies and departments during litigation where they are parties.

The Insurance Bill, 2016 which is expected to be passed by the House this morning is a piece of legislation repealing the entire Insurance Act as Uganda seeks to embrace the latest dynamics in the insurance business.

One of the most fundamental aspects of the Insurance Bill, 2016 is a clause that seeks to exponentially increase the minimum paid up capital required of an insurer before getting a license to operate in Uganda in the case of life or  non-life insurance from sh200m to sh4b.

For reinsurance business, insurers seeking licenses will have to raise paid up capital of sh10b, up from the current threshold of sh500m.

With a near galloping inflationary spiral since the Insurance Act was amended in 2013, the spike in paid up capital seems to be informed by the need to match the current financial realities.

Unlike under the current insurance Act, the new legal regime in insurance business also introduces a "fit and proper person test" criteria for individuals deemed deserving of managing, controlling, substantially shareholding, being directors or senior managers of any insurance company.

The test for a fit and proper person which is similar to the one in the banking sector as enunciated by the Financial Institutions Act bars an individual adjudged bankrupt, a former convict of crimes touching on moral turpitude like corruption and embezzlement from holding senior managerial position in an insurance company.

The Insurance Bill also seeks to reduce the time within which the Insurance Regulatory Authority can make a decision on an application for an insurance license from four months to 60 days.

The decision to reduce the time within which an insurance license can be granted is in sync with government's policy of reducing unwieldy bureaucracy which makes the cost of doing business in Uganda - especially for foreign investors, more expensive than surrounding countries. Ends.