Govt clarifies on 'IGG, Mutebile meeting with Museveni'

Minister Frank Tumwebaze says the reported meeting is, for now, rumour. (File photo)

ECONOMY

KAMPALA - Media reports that President Yoweri Museveni has summoned the Bank of Uganda Governor, Prof. Emmanuel Tumusiime-Mutebile, and the Inspector General of Government, Justice Irene Mulyagonja-Kakooza, for a mediation meeting, have been described by Government as hearsay.

According to the Minister of ICT and National Guidance, Frank Tumwebaze, the social media reports of the intended meeting are just "wolokoso" (rumour).

"That is just wolokoso. There is no proposal for such a meeting unless State House confirms the meeting," he told New Vision on phone Monday.

Meanwhile, senior presidential press secretary Don Wanyama also refuted claims of the proposed meeting.

"I am not aware of the proposed meeting, but if it happens, State House, will let the public know," he told New Vision.

Following a recent standoff between the IGG and Bank of Uganda over disputed senior staff changes at the financial institution, media reports claimed that the President had summoned Mutebile and Mulyagonja to establish the genesis of the public uproar pitying the two public servants.

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 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 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 Bank of Uganda's reputational integrity," Mutebile said.

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."