M7 AND NRM HAVE MESSED UP THE BANKING SYSTEM TOO


All banks you see in Uganda whether Teefe, whether Cooperative Bank, whether what, all worked through UCB and UCB dealt straight with Bank of Uganda, that Is why UCB was of a great value for it was setting the policies in the country that were of great value to the country. For a very unknown reason, Uganda closed UCB and handed its power to Kenya Commercial Bank. So all banks you see in Uganda deal with Bank of Uganda through Kenya Commercial Bank, and all moneys to and from Uganda go through the control of Kenya Commercial Bank. When you look in most of the banks in Uganda, many of the decision makers in the banking sector are actually Kenyans sitting in Kampala. And it is not only banking but so is insurance sector. Let me go back to Uganda observer and post a piece that was written on 04 May 2009 that many of you simply did not care about.

There are two major sectors in banking of any country, the national bank or central Bank, and the Commercial Bank. In Canada, the Commercial Bank of the country is The Royal Bank, this is the bank that connects us with Bank of Canada and it connects us with the international banking sectors. Every money you wire out or into this country goes out and comes in through The Royal Bank of Canada, and then to and from the National Bank. It does not matter if you wire it through Canada Post, Western Union your Papa corner store wiring system or any other Canadian bank, the get way for it to get out and into this country is The Royal Bank. That is our Commercial Bank. It is a very powerful position to hold for you set a whole lot of policies in banking sector.

Of the 21 commercial banks registered in Uganda, only 4 can be called Ugandan.
Take a stroll on the streets of Kampala and glance at the billboards, you either confront a message luring you into a foreign bank for a loan or an international telecom company announcing unbelievable discounts. Scan through the list of the biggest taxpayers and hardly a local company features in the first ten. Shuffle the business cards of the top managers of the top taxpayers; the names will read non-Ugandan.Since the 1990s when the privatisation wave reached fever pitch, Uganda’s investment policy has been haphazard with virtually no controls.

Unlike other countries in East Africa, for instance Kenya, where foreign investment is restricted to specific sectors, and joint ventures with locals a must, in Uganda it is a la carte; investors can own almost 100% of their businesses, employ 100% foreign workers, and repatriate their profits 100%.’

It is a systematic M7-government policy to allow foreign investment of weird investors to the exclusion of native Ugandan investment. The reason being that whatever amount of wealth the foreign investors may accumulate, they will never pose a political threat to the powers that be. You saw how the cooperative unions were strangled, Tteefe Bank, Kiggundu and company investors, UCB(and someone the other day was telling me that they have a Kenya Commercial Bank in Masaka). Can you imagine!!!

Ugandans are capable of planning well for their country, something just went wrong here and we all know who is responsible – Putting political interests above the national interest. That is so unpatriotic.

EDWARD MULINDWA
TORONTO

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