Category «Business»

Economic experts are warning of a possible reversal of the inflation trend following news of government raiding the national treasury to refund stolen aid money. Uganda’s development partners including Norway, Sweden, the Republic of Ireland and Denmark last October took the decision to freeze aid transfers after a forensic audit by the Auditor General unearthed evidence of financial scam at the OPM. At least 60bn shillings meant for recovery and development activities in northern Uganda and Karamoja was reportedly swindled, prompting the angry donors to demand for a refund of their stolen cash. Now government is reported to have returned 21 billion shillings to the Swedish government that was swindled from the Office of the Prime Minister, without the approval …

Read more

The Bank of Uganda has recalled all the 1987 currency notes. Addressing the media this morning, the Deputy Governor, Louis Kasekende said the notes include the 1000, 5000, 10,000 and 20,000 shilling notes printed before 2010 including the 10,000 Chogm notes. Kasekende says commercial banks are required to cease issuing of the said notes with immediate effect. He says the withdrawal process is expected to continue until March 30th 2013, after which the affected currency notes will no longer be acceptable as legal tender. He explains that between March 30th and May 30th 2013 commercial banks will exchange the old currency notes at full face value. He adds though, that beyond that date, the notes will be exchanged at a …

Read more

The Governor of Bank of Uganda Emmanuel Tumusime Mutebile has warned of a possible reduction in the country’s economic growth rate as a result of the aid cuts by different donors. According to Mutebile, the aid cuts will reduce the potential growth rate of the economy by about 0.7%. The European Union, the World Bank, the UK, Ireland, Austria and other countries have suspended up $300 million, earlier promised in budget support. Announcing the Central Bank Rate for the month of December, Mutebile asked government to cut down on its expenditure in a bid to mitigate the problem; Mutebile said it’s too early to tell what will happen, but adds that government will have to choose areas where expenditure will …

Read more

The Uganda National Roads Authority has finalized plans to begin construction of the Entebbe Express Highway. The Authority Spokesman Dan Alinange says work is to start tomorrow with a ground breaking ceremony to be witnessed by President Museveni. Alinange says that they do not expect to meet any challenges after compensating over 250 people to be affected by the construction works. He says Shs 10billion have so far been used in compensating people who are required to vacate the area 3 months after payments. The whole project is budgeted to consume $477million with the Chinese Export and Import Bank injecting in $350million. The road that is to pass through areas of Busega, Kajjansi and Kabojja among others is to have …

Read more

City business man Justus Kashoma has been acquitted of attempting to defraud Stanbic Bank. Kashoma was charged together with five people including Bank officials who were acquitted last year for lack of sufficient evidence. He was arrested at Stanbic Bank’s Garden City Branch in Kampala for allegedly trying to withdraw $ 500,000 in cash. The total amount that had been wired into Kashoma’s accounts was $3.8m. Delivering judgment today, Buganda Road Court Chief Magistrate Eleanor Mary Khainza said the evidence adduced does not show that Kashoma could rob a bank alone after the acquittal of the five. The five acquitted earlier include Private David Muhumuza, a driver of Rujumbura MP Jim Muhwezi, Capt. Muzamiru Wakulira and three Stanbic Bank employees …

Read more