Three authorities companies, the Uganda Microfinance Regulatory Authority (UMRA), the Privatisation Unit and the Non-Performing Assets Recovery Trust have been despatched again to the Ministry of Finance, Planning and Economic Development.
The three rationalization modification payments have been thought-about and accepted by Parliament sitting on Wednesday, 06 November 2024.
While reporting on the Tier 4 Microfinance Institutions and Money Lenders (Amendment) Bill, 2024, the Finance Committee Chairperson, Hon. Amos Kankunda, noticed that UMRA has not been capable of absolutely execute its mandate.
“Whereas the authority managed to licence a number of cash lenders and tier 4 micro finance establishments beneath their mandate, it has not been adequately resourced for the eight years it has been in operation,” Kankunda mentioned.
He added that newer monetary companies like Parish Development Model SACCOS and related pursuits throughout the nation require elevated and sturdy sector regulation.
FDC, Budadiri County West, Hon. Nandala Mafabi reignited a proposal to deal with the administration of Tier 4 establishments together with SACCOS, beneath Bank of Uganda.
“In 2016, the Finance Committee agreed that this perform ought to to go to Bank of Uganda, however authorities proposed that we create a regulation to deal with Tier 4 establishments. Even whether it is small, the individual accountable for cash is Bank of Uganda,” Nandala-Mafabi mentioned.
Otuke County Representative, Hon. Paul Omara nonetheless, counter-argued that Bank of Uganda would require a brand new construction to handle these establishments.
“If you say that you simply take that perform to Bank of Uganda, they won’t settle for until you interact them they usually have a selected division that can deal with it,” mentioned Omara.
The Attorney General, Hon. Kiryowa Kiwanuka suggested that the proposal be ought to be studied because the House capitalises on the rationalisation course of.
According to the Ministry of Public Service, a brand new division known as the Microfinance Tier 4 Management Department shall be created within the Ministry of Finance, to take up all of the features of UMRA as offered for beneath the Act.
Relatedly, following the dissolution of the Privatisation Unit, the Public Enterprises Reform and Divestiture (Amendment) Bill, 2024, will allow the mainstreaming of the features of the Divestiture Reform Implementation Committee to the Ministry of Finance, in a bid to eradicate duplication of roles.
The committee additionally tasked the Minister for Finance to current a complete report back to Parliament, on divestiture proceeds together with amongst others, particulars on accounts held in industrial banks and improvement banks for proceeds from divested firms.
Meanwhile, following a vote to move the Non-Performing Assets Recovery Trust Act (Repeal) Bill, 2024, the Finance Committee known as for a particular audit of the Trust since its inception.
“The committee additional recommends that the Non-Performing Assets Recovery Trust Tribunal be dissolved with quick impact and all pending instances, if any, be transferred to the Office of the Attorney General to additional reduce administratrative prices in keeping with the rationalization coverage of presidency,” Hon. Moses Aleper, the Deputy Chairperson of the Finance Committee mentioned.
