The ministry for finance and Bank of Uganda are currently involved in a row over repayment of city tycoon Basajjabalaba’s shs142 billion compensation funds to the central bank coffers for losing city markets.

Bank of Uganda  Governor Tumusiime Mutebile told the public accounts committee that much as the then finance Syda Bbumba assured him that his money would be paid back, the matter continues to a subject of fists between the central bank and finance ministry.

He says the bank is now in losses on its account because the two entities have not finalized on who will pay, adding that the new minister for finance (Maria Kiwanuka) has however asked him to wait  to allow negotiations.

Mutebile says that the central bank has already paid out shs120 billion (USD26m) to various city banks to which he gave letters of comfort (guarantees) to give Basajjabala loans; on understanding that the ministry of finance was going to pay this money and that talks are ongoing between Bank of Uganda  and these banks regarding the balance of US$20m.

He explained that he gave the guarantees to those banks including Tropical bank, UBA, Orient and bank of Baroda after then finance minister Syda Bbumba assured him that Basajjabalaba was owed by the government 142 billion shillings and that this money was to be paid back after parliamentary approval.

He said they sought his assistance to help Basajjabalaba to secure loans which he offered.
By isaac Senabulya