The Bank of Uganda (BoU) has issued tough security measures to its staff in as far as access to Counting/Machine Rooms at the Currency Branches across the country is concerned.
This follows reports that BoU staff were allegedly caught on camera stealing large sums of money at Mbale currency centre.
It is alleged that the stolen money is part of the old banknotes which is out of circulation and kept at the branch strong room waiting to be destroyed.
Consequently, the Office of the Director Currency on September 2, 2019 issued an internal security alert to all their currency centres across the country in order “to mitigate risks and strengthen internal controls in our currency operations.”
The memo signed by Acting Director Board Affairs at BoU, Bazinzi Natamba says that no examiner should access a Counting/Machine room of another Currency Branch without the required authorization.
“No staff other than Note Examiners should participate in the Counting/Machine Room activities such as sorting, punching and strapping of stocks,” Natamba’s letter reads, adding that CCTV recordings should always be reviewed daily.
“Immediately stop staff from carrying into the counting rooms any items such as tea, water, eats, juices, among others for personal use,” the letter further reads.
It adds that waste baskets or boxes in the counting rooms must urgently be removed.
It emerged that staff have been using trashcans in the counting rooms to load old banknotes and sneak them out of the Bank.
Currently, the Central Bank has 8 other branches in the districts of Jinja, Mbale, Gulu, Mbarara, Masaka, Arua, Fort Portal and Kabale.
The main functions of the branches are to accept bulk deposits, effect withdrawals and process banknotes deposited, to ensure that adequate banknotes of acceptable quality are available for re-circulation. The law gives Bank of Uganda powers to destroy banknotes which do not meet the required quality standard.
Efforts to get a comment from BoU were futile by the time this story was posted.
BoU has been under fire in recent months in as far as management of currency centres is concerned.
In July this year, BoU was forced to speak out on the reported suspicious movement of currency from Kampala to upcountry branches.
In a statement dated July1, 2019, BoU said “Bank of Uganda (BoU) undertakes movement of currency across its nine branches (including Kampala) as part of its constitutional mandate of “regulating the currency system in the interest of the economic progress of Uganda.”
“In line with the constitutional obligation, it adds, the BoU undertakes necessary logistical arrangements to deliver sufficient quantities of currency to ensure that Uganda’s cash based economy runs seamlessly.
“In June 2019, there were standard stock movements between Kampala and the upcountry branches including Masaka that have rather unfortunately become a subject of speculation,” BoU said in the statement.
It added: “BoU as part of its currency processing cycle moves currency stock within the Branch network to optimize vault space in its currency stations and meet the currency demand across the country. Therefore, the movement of stock between Kampala and the upcountry Branches in June 2019 was part of BoU’s normal currency operations.”
It adds that following the handover of the new building on Katwe road, Masaka where the new BoU branch is located, all centre’s operations were shifted from the Old Branch Office on Kampala Road, Masaka.
It
is worth noting that three Bank of Uganda employees charged in the
anti-corruption court over a procurement scandal took leave from office in line
with the Public service rules that require a public servant to step aside, in
the face of an investigation.
The three officials are Francis Kakeeto, the Assistant Currency Director Bank
of Uganda Mbale Branch, Fred Vito Wanyama, the Verification Officer and the
Currency Director, Charles Malinga Akol.
They were charged in the response to the currency that BoU was bringing into
the country in April from Paris.
