Uganda: We Are Not Party to Government Cash Bonanza, Says Central Bank

31 October 2010

Kampala — Bank of Uganda says it's not to be blamed for increased drawing of cash by government departments in excess of the Shs20million set by the Finance Ministry. "We pay money only where there is written authority by the competent authority in Ministry of Finance. What they use money for is not our obligation," said Mr Juma Walusimbi, BOU's director of communications.

Sunday Monitor last week broke a story of how several government departments had failed the electronic money transfer system which was meant to minimize fraud. Instead of adhering to the cash limit of Shs20million, several ministries now cash out more than Shs20million from Bank of Uganda in one withdrawal a day. But the central bank says "there is no illegality and there is no connivance whatsoever on the part of Bank of Uganda." Responding to our earlier story, Mr Walusimbi said every money they paid out was properly documented.

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