MPs task Central bank to explain need for extra UGX 480 Billion for - National | NTV

MPs task Central bank to explain need for extra UGX 480 Billion for capitalization

By JACKSON ONYANGO

Thursday January 9, 2020

MoFPED, BOU officials facing a parliamentary committee 

Ministry of finance, planning and economic development and officials from the Bank of Uganda are before the line committee of parliament to explain why Bank Of Uganda needs a further 480 billion shillings for capitalization.

The Bank was, in the running financial year, provided with UGX 200 billion for capitalization. The proposal for the provision of the additional funds for the capitalization is attracting concerns among the Members of Parliament sitting on the finance, planning and economic development committee.

While making the presentation for the Budget Framework Paper for the financial year 2020/21 on Wednesday, the head of the delegation David Bahati  indicated that UGX 400 billion of the domestic borrowings was unjustified. This was according to the independent audit conducted by Ernst and Young out of the 2.1 trillion shillings.

The committee has taken a 10 minute break to enable the Permanent Secretary and Secretary to Treasury Keith Muhakanizi to appear in person.