BoU Appoints National Bank of Commerce Advisor


purchase erectile geneva; font-size: small; line-height: 115%;”>In a statement issued Thursday as Uganda celebrates World Water Day, sildenafil Mutagamba says:

Header advertisement

“While national figures for access to clean water show considerable improvement; there are a number of districts and sub-counties, especially within the dry belt/cattle corridor, which still face a challenge of in accessing clean water.”

“For example, available data shows that 38 districts out of the then 79 (June 2011) still have access to safe water (in the rural areas) below the national average of 65%,” notes Mutagamba.

“The ministry recently prepared an updated Water Supply Atlas 2010 for Uganda which also reveals that there is inequity in service provision within the districts which needs to be addressed. Therefore, the Water Atlas is going to serve as a vital reference document to the district leaders during process of resource allocation for new investments.”

She says the Ministry is in the process of constructing valley tanks and earth dams to provide 3,000 million cubic meters of water in the cattle corridor.

“So far, 52 valley tanks have been constructed under the Strategic Interventions Program for Export Promotion under the Agriculture Sector,” says Mutagamba.

These are of capacities ranging from 6000 m3 to 10,000 m3 at parish level in the districts of Luwero, Nakasongola, Mbarara, Kyenjojo, Rakai, Masindi and Sembabule District.

Mutagamba assures the nation that these facilities have greatly water for livestock storage in those areas.


She also announces a tremendous achievement so far gained in the struggle to give Ugandans clean and safe water.

“In the urban areas, access to clean, safe water has improved from 56% in 2006 to 66% by June 2011. In the rural areas, access to clean safe water has improved from 63% in 2006 to 67% by June 2011,” says Mutagamba.

The technologies for water supply in Uganda include protected springs, shallow wells, rain water harvesting tanks, piped gravity flow systems, boreholes, pumped-piped ground water abstraction systems (with limited treatment), and conventional pumped-piped surface water abstraction systems with treatment plants.

Mutagamba says major physical achievements in the rural areas during the period 2006-2011 include:- 3,766 shallow wells constructed; 1975 protected springs; 3722 deep bore holes; 518 gravity flow systems (gfs) with 3,240 tap stands; 92 piped water systems in rural growth centres; rehabilitated 2,319 boreholes; and 3,892 rainwater harvesting tanks were constructed; and 429,227 household latrines.

For rural water supplies, emphasis on technology selection for a given location is put on the cheapest feasible option which is within the capacity of the beneficiary community to operate and maintain, according to the minister.

“The more expensive options (such as pumped-piped water abstraction systems with/without treatment) are usually the preferred options for rural growth centres/towns. It should however be noted that the potential for the cheapest options (like springs and shallow wells) has almost been fully exploited in most districts, and therefore the more expensive options (piped water schemes with borehole sources) are being developed,” she affirms.


The National Household sanitation coverage has increased from 59% in 2006 to 70% as of June 2011 (according to MoH data).

Mutagamba says the biggest challenge faced by communities are the poor soil conditions (Collapsing, water logged, rocky) and inadequate knowledge of appropriate technological options.

“However, most of the districts have tried to improve latrine coverage through enactment and enforcement of sanitation bye-laws and application of the Publi8c Health Act (PHA), although it should be noted that almost half of the districts still have no ordinances, while others have not been approved by the solicitor general, a process which takes a long time.”

The ministry, in collaboration with the MoH has printed copies of the Public Health for distribution and sensitization of districts on the process of enactment and enforcement of the sanitation bye-laws.

About 80% of the districts (June 2011) carried out home improvement campaigns aimed at increasing and improving the sanitation coverage.

A National Hand-washing campaign was launched in October 2010 and has been rolled out in 30 districts.

Expand services of NWSC to cover all municipalities & major urban areas

The National Water and Sewerage Corporation services (NWSC) have now been expanded from 19 towns/municipalities in 2006, to now cover 23 municipalities and towns such as Kampala-Mukono, Jinja and Entebbe-Kajansi among others inclusive of 30 other satellite towns which are supplied by the 23 NWSC systems.

this web geneva;”>medical sans-serif;”>Deputy Governor Bank of Uganda Dr. Louis Kasekende revealed: remedy sans-serif;”>“The move is intended to protect the depositors of that Bank whose shareholders are in the process of resolving an ownership dispute.”

Kasekende further stated: “The general public is hereby informed that NBC will continue to operate normally under the new management.”

He also clarified that the Central Bank had appointed an adviser from its power under section 82 of the Financial Institutions Act, 2004.

The move comes at time when the bank is facing an internal power struggle.

The Observer on Wednesday noted the bank was facing a crisis following the teaming up of International Investment House (IHH) and the bank’s minority shareholders to push for a court injunction stopping any further operations of the bank until court pronounces itself on the cases before it.

IHH, a consortium of Arab investors led by Ahmed Dagher Darwish, has instructed another law firm Kwesigabo, Bamwine and Walubiri Company Advocates to work with Godfrey Lule and Company Advocates, the lawyers for the 324 minority shareholders, to convince court to place an injunction that will stop the bank’s majority from engaging in any transactions until the cases before court are resolved.

There are two cases against the bank before the Kampala High Court Commercial Division.

On Thursday last week, IHH through their lawyers, Shonubi, Musoke, & Co Advocates filed a case against the bankís three majority shareholders, Prime Minister Amama Mbabazi, ICT minister Ruhakana Rugunda, and prominent businessman Amos Nzei seeking to recover $9.97 million invested in the bank or relinquish 76 percent majority shares of the bank.

This comes as the same court continues with another case filed by the minority shareholders challenging the legality of the bank.

National Bank of Commerce, formerly known as Kigezi Bank of Commerce was started in 1991 as a public bank based in Kabale to provide banking services and inexpensive loans to the people in the south-western sub-region of Kigezi.

It is reported to have been registered by 15 people after a paper presented by Dr Ezra Suruma urging the sub-region to have its own bank. According to Justice George W. Kanyeihamba, one of the 324 minority shareholders, the majority shareholders at the time were Mukwano Industries which invested Shs 100 million in the bank and an Indian businessman known as Kumar who invested $40,000.

The minority shareholders question how Mbabazi, Nzei and Rugunda acquired majority shares in the bank and where they got the powers to register a public bank as a private bank with only two signatories.

The trio is reported to have taken over control of the bank and secretly registered it as a private bank limited by guarantee – changing its name to National Bank of Commerce (U) Ltd.

According to Lule, this action is unlawful and disrespectful to the minority shareholders. He says his clients now believe the National Bank of Commerce, which has its headquarters on Parliament Avenue in Kampala, is poorly incorporated under the law because the change of name was not undertaken with their consent.

The group is also challenging the fact that since their running to court, the bank’s majority shareholders have consistently continued to trade the bank’s shares.

“Once a bank has been taken to court over disputes of shares, any further share deals are curtailed. But they [Mbabazi, Rugunda and Nzei] continued to sell shares,” Kanyeihamba says.

The bank’s cost to income ratio (the money it spends to make money) was 220% as at December 2011, far higher than the industry average of about 65%. This high ratio is brought about by the bank’s worsening losses.

NBC’s loan portfolio – an area where banks make money – declined by 18% to Shs 6.9bn in the year ending December 2011 while customer deposits dropped by 16% (to Shs 9.7bn) during the same period.


Header advertisement
To Top