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 had 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 in a position to totally execute its mandate.
“Whereas the authority managed to licence a number of cash lenders and tier 4 micro finance establishments below their mandate, it has not been adequately resourced for the eight years it has been in operation,” Kankunda stated.
He added that newer monetary providers like Parish Development Model SACCOS and comparable pursuits throughout the nation require elevated and strong sector regulation.
FDC, Budadiri County West, Hon. Nandala Mafabi reignited a proposal to deal with the administration of Tier 4 establishments together with SACCOS, below Bank of Uganda.
“In 2016, the Finance Committee agreed that this operate 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 stated.
Otuke County Representative, Hon. Paul Omara nevertheless, counter-argued that Bank of Uganda would require a brand new construction to handle these establishments.
“If you say that you simply take that operate to Bank of Uganda, they won’t settle for except you have interaction them they usually have a particular division that can deal with it,” stated Omara.
The Attorney General, Hon. Kiryowa Kiwanuka suggested that the proposal be needs 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 will probably be created within the Ministry of Finance, to take up all of the capabilities of UMRA as offered for below 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 capabilities 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 growth banks for proceeds from divested corporations.
Meanwhile, following a vote to cross 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 circumstances, 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 stated.
