MPs defy Museveni ideas on financial institutions
Oct 24, 2003
MEMBERS of the parliamentary committee on finance yesterday rejected President Yoweri Museveni’s appeal to reconsider the Financial Institutions Bill passed by the house early this year
By Milton Olupot
MEMBERS of the parliamentary committee on finance yesterday rejected President Yoweri Museveni’s appeal to reconsider the Financial Institutions Bill passed by the house early this year.
The committee, chaired by Maj. Bright Rwamirama (Isingiro), met to reconsider the Bill after President Museveni refused to assent to it.
Museveni recently returned the Bill to the Speaker of Parliament who forwarded it to the committee for reconsideration of two provisions.
Museveni is opposed to a provision that allows an individual or relatives to own up to 49% shareholding in a local financial institution. He suggested that they should hold a maximum of 20% shares.
Museveni is also opposed to the provision that would require Parliament to approve revision of the minimum capital requirement of commercial banks. He wants this power to be invested in the Governor of the Central Bank.
Members of the committee said denying people to own shares of their interest in business was in contravention of the constitutional provisions that provide that anybody is free to own property or interests individually or in association with others.
Nandala Mafabi (Budadiri West) said, “The Company Act allows two persons, or groups of people to own shares in any business up to 100% and if we have to change this Bill, then we have to amend the Company Act first.â€
The Act also gives the partners liberty to determine their minimum share capital.
He said if the Central Bank were given the powers to determine the minimum capital requirement, the law would be subject to abuse.
James Mwandha (PWD Eastern) said, “I don’t agree that subjecting the minimum capital to parliamentary approval would be beaurocratic. Parliament takes government business as priority and there is no way there can be delays.â€
MEMBERS of the parliamentary committee on finance yesterday rejected President Yoweri Museveni’s appeal to reconsider the Financial Institutions Bill passed by the house early this year.
The committee, chaired by Maj. Bright Rwamirama (Isingiro), met to reconsider the Bill after President Museveni refused to assent to it.
Museveni recently returned the Bill to the Speaker of Parliament who forwarded it to the committee for reconsideration of two provisions.
Museveni is opposed to a provision that allows an individual or relatives to own up to 49% shareholding in a local financial institution. He suggested that they should hold a maximum of 20% shares.
Museveni is also opposed to the provision that would require Parliament to approve revision of the minimum capital requirement of commercial banks. He wants this power to be invested in the Governor of the Central Bank.
Members of the committee said denying people to own shares of their interest in business was in contravention of the constitutional provisions that provide that anybody is free to own property or interests individually or in association with others.
Nandala Mafabi (Budadiri West) said, “The Company Act allows two persons, or groups of people to own shares in any business up to 100% and if we have to change this Bill, then we have to amend the Company Act first.â€
The Act also gives the partners liberty to determine their minimum share capital.
He said if the Central Bank were given the powers to determine the minimum capital requirement, the law would be subject to abuse.
James Mwandha (PWD Eastern) said, “I don’t agree that subjecting the minimum capital to parliamentary approval would be beaurocratic. Parliament takes government business as priority and there is no way there can be delays.â€