The governor Bank of Uganda, Mr Emmanuel Tumusiime-Mutebile has rejected an order by the Inspector General of Government, Ms Irene Mulyagonja to halt the senior staff changes he made recently.
On February 7, Mr Mutebile made sweeping changes at Bank of Uganda, with the reshuffle affecting eight executive directors, 13 directors, 24 assistants/deputy directors and four staff members.
Key among the reshuffles that have caused controversy was the sacking of Ms Justine Bagyenda, the then executive director for Commercial banks supervision and replacing her with Dr Tumubweine Twinemanzi.
Ms Bagyenda refused to hand over office saying she had been illegally fired while aggrieved employees petitioned the IGG calling for a broad inquiry into Mr Mutebile’s management style at the bank.
The IGG responded by ordering that the changes be halted until investigations are concluded to determine whether they meet the minimum legal standard.
But in a March 19 letter, Mr Mutebile hit back at Ms Mulyagonja, telling her that the “inspectorate does not have the mandate to give direction to Bank of Uganda.”
He insisted that the staff changes he made will stand and that not even the President or Speaker had ever “so brazenly” directed the IGG.
“We reiterate our previous position in our letter dated March 6, 2018 regarding the validity of the appointments but we must add that the Inspectorate does not have the authority to give direction to Bank of Uganda, “Mr Mutebile writes in his letter.
The letter was also copied to the President, Prime Minister and Speaker.