Welcome to the Rwenzori Lounge! This will be the off topic section for the Ugandan subforum. Talk about anything you like to as long as it complies with SSC rules.
The Libyan government has lost control of Tropical Bank in Uganda following the Central Bank’s decision to enforce a United Nations Security Council Resolution announced last month calling nations to freeze assets of the Libyan government and its associated entities in foreign countries.
However, Bank of Uganda maintains that Tropical Bank will continue operating normally despite the sanction on the Libyan government stating that Tropical Bank is in a sound financial condition and will continue with normal operations.
The United Nations Security Council Resolutions 1970 and 1973 imposed an asset freeze on the Government of Libya and associated entities, including the Libyan Foreign Bank, the major shareholder of Tropical Bank Limited. The sanctions on Libya were imposed to halt attacks by Libyan leader Muammar Gaddafi’s regime on protesters. Uganda’s government has frozen $375 million worth of Libyan-owned assets to comply with the UN action, as reported yesterday in our paper.
Tropical Bank is among the 24 commercial banks licensed by the Bank of Uganda. The Libyan Foreign Bank has 99.83 per cent shareholding in Tropical Bank and has been responsible for appointing top managers of the bank.
In a statement read for him by the Deputy Governor, Dr Louis Kasekende, in a news conference held at the bank’s premises yesterday, Prof. Emmanuel Tumusiime Mutebile, the Bank of Uganda governor, said: “In order to ensure that Tropical Bank continues operating normally as a commercial bank in Uganda, the Bank of Uganda has taken a series of measures which are designed to ensure that its management is fully independent of the Libyan government and its associated entities and that it transacts no business with the Libyan Government and Associated entities.”
Prof. Mutebile explained that these measures, which are taken under the Financial Institution Act, include the removal from office with immediate effect of mangers and board members appointed by the Libyan Foreign Bank.
To this effect, the central bank has appointed Prince Kassim Kakungulu replacing Mr Mohamed Ali Wahra who has been the managing director of the bank.
Speaking on the status of the remaining posts to be filled by the Bank of Uganda, Prof. Mutebile said the Bank of Uganda is appointing a new management team and board in consultation with government. Without mentioning names, the Executive Director Supervision, Bank of Uganda, Ms Justine Bagyenda, said five board members and senior managers of Tropical Bank has been removed.
Libyan government has several investments in Uganda. However, the central bank did not mention any other asset freezing apart from the one in Tropical Bank.
Lately, Libya has become one of the leading foreign investors in Uganda in various sectors of the economy. When Saturday Monitor called Tropical Bank, the former Director Communications BoU, Mr Jume Walusimbi, who said he was just helping to respond to the numerous telephone calls, declined to divulge details on the financial strength of the bank and instead said Tropical Bank would organise a press conference later in the date to clarify on the situation.
it'll pick up eventuallySadly, this general chat installment isnt quite as successful as the Ghanaian one.