Activists back IGG on Mutebile saga

PIC: Bank of Uganda governor, Prof. Emmanuel Tumussime-Mutebile. Photo/File

The Anti-Corruption  Coalition Uganda (ACCU) has backed the Inspector General of Government, Justice Irene Mulyagonja's probe into the operations of the Bank of Uganda Governor, saying the actions of the IGG are in sync with the doctrine of checks and balance.

Kagaba argues that: "it is within her mandate especially considering that she is not attempting to delve into day to day policy actions of the bank."

She added that by probing the allegations, the IGG is not interfering with the independence of the bank.

Kagaba has weighed in into the stormy friction between the IGG and Bank of Uganda, after a recent standoff between Mulyagonja and Bank of Uganda governor, Prof. Emmanuel  Tumussime-Mutebile over disputed senior staff changes at the financial institution.

Mutebile reshuffled Bank of Uganda senior staff on February 7, but some staff, including Justine Bagyenda, the executive director for commercial banks supervision allegedly refused to hand over to newly appointed Dr. Tumubwine Twinemanzi.

The Mutebile changes, which affected 13 directors, 24 assistants directors and four lower level staff, were also contested by staff, who petitioned the IGG, urging her to cast a torch on the procedural mechanisms that shaped the Governor's decision.

The aggrieved staff at the Bank of Uganda also called for a wider investigation into Mutebile's management style, describing the recent changes as "illegal" and thin on the known Bank of Uganda recruitment procedure.

The IGG responded to the petition by ordering Mutebile to halt the staff changes until investigations are concluded.

This caused a stir within the Central Bank with Mutebile stating in his March 19 letter to the IGG that her "investigation is redundant."

"Your presumption of bad faith as a basis to take over the Board's role presupposes you have already formed an opinion which makes an investigation redundant. But more importantly, this presumption of bad faith undermines the Bank of Uganda's reputational integrity," Mutebile said.

But the IGG responded in her March 12 letter stating that the: "Constitutional independence of the Bank with regard to the execution of its functions as laid out under Article 162 is only guaranteed where the Bank is deemed to be acting in good faith and in accordance with the law, relevant regulations and policies and the principles of natural justice."