Senior officials from Bank of Uganda appeared before the Parliament’s Committee on Statutory Authorities and State Enterprises to respond to audit queries raised in the Auditor General Report for 2015/2016 and 2016/2017. One of the concerns was the sharp rise in the legal fees the central bank incurred on external lawyers. The Committee learned that despite having a fully-fledged legal department of nine members, Bank of Uganda had continued to depend on external lawyers even on small issues like renewing expired land leases. “Our lawyers have actually provided us with support. They are not just clerical that it’s a processing department, they do give us opinions.” Said, Louis Kasekende – Deputy Governor, Bank of Uganda. “From what we have that’s the impression we get. Because if you are telling us that your lawyer can’t even register a mortgage. Can’t even do a search.” “Well, the search is different but the opinions, that’s how we would judge them and the workload.”

Bank of Uganda was also faulted for paying Max Advocates a law firm a sum of 1.6 billion for legal services before entering into an agreement with the company. “Payment was being done before the contract is entered in and that’s we are asking, how could they do that? It is a new practice in the bank?” Said, Anita Amongi – Woman MP, Bukedea District. “We are wondering why they do not stick to the amounts they appropriate for particular activities. They end up making a quite number of requirements and we wonder where their priorities are drawn from during the expenditure period?” Said, Michael Tusiime – Mbarara Municipality MP. After almost three hours of back and forth, Committee Chairperson and Bugeri County MP Abdu Katuntu directed the Deputy Bank of Uganda Governor Louis Kasekende and his team to provide the total sum of the central bank’s legal expenditure on external lawyers from 2013 to date. This would also include the money so far spent on lawyers in the case involving Bank of Uganda and the defunct Crane bank. “From 2013 to date, how much money has Bank of Uganda paid in legal fees and don’t edit any payment so far including the payment on Crane bank.” Said, Abdu Katuntu – Chairperson, COSASE.