Mutebile Vs Kasekende

In another case, the bank governor suspended a scheme led by Kasekende’s team, which officially was aimed at showering up the bank’s foreign exchange reserves but which had been undermined by senior officials who were leaking information to international private banks. The net effect was that the private banks were making billions of shillings at the expense of the taxpayer and the central bank was failing to control the depreciation of the shilling.

All these revelations are contained in several memos, letters and reports that The Independent has relied on for this investigation.

Then mid-last year some unhappy staff raised concerns about several Kasekende appointments and petitioned Mutebile and the board of directors. While the board, which had participated in interviewing these appointees, ignored the complaints, Mutebile paid attention, ordered an investigation, and on the basis of its conclusions, cancelled some appointments.

Mutebile appears to have scuttled plans by transferring officials Kasekende had placed in key positions.

Mutebile resisted

But unlike Kasekende who always ensured he worked hand in glove with the bank board to effect his changes, Mutebile appears to prefer the lone ranger approach. And it appears to be costing him.

The Independent has learnt that Mutebile appears to have first faced resistance when on July 28 last year, he wrote to the Executive Director Administration (EDA), Oketcho, asking him to propose a rotation and transfer schedule for all staff from the rank of Assistant Director to Executive Directors by August 4, 2017.

Pointedly Mutebile wrote: “Please note that in future, the transfer and rotation of staff in the category mentioned above shall be approved by me.” He copied in Kasekende.

Insiders say by this directive, the governor had cut off Kasekende who had been overseeing the rotations while working with the EDA.

However, by August 04 – the deadline Mutebile had set – the EDA had not replied or acted. He replied on September 06, 2017. In his reply, Oketcho proposed rotation and transfer of staff for Assistant Director and Director only. He attached a list of only 22 staff. But even amongst these, Oketcho proposed that many are not transferrable because either they had been in the position for “below five years” or there was “no one to swap with”. He also noted the “on-going Crane Bank issues” and “newly transferred” officers.

On the top most rung – of executive directors; the EDA wrote: “It is proposed that the transfer of Executive Directors be stayed because of the on-going Crane Bank legal issues; transfers affecting this category might be misinterpreted.”

In effect, insiders say, Oketcho proposed no changes at all. Some insiders saw this as a move intended to keep people in certain jobs.

A similar incident happened in November last year.

This time Mutebile declined to ratify the appointment of assistant directors and instead directed that the Internal Audit investigate the entire process.

The Chief Internal Auditor, Deborah Kabahweza; now Executive Director Finance, concluded that the process had issues and called for its termination.

But the EDA Oketcho insisted that Mutebile ignores Kabahweza’s recommendations and approves the appointments. Mutebile refused.

“We have to respect internal audit and cancel,” Mutebile insisted.

When board members were engaged, some suggested that since their term was about to expire, the Kasekende appointments should be passed for now.

But Mutebile stuck to his guns.

“Yes, you are going,” the governor, who chairs the board said, “there will be another board after you.”

Secretary to the Treasury, Keith Muhakanizi, is said to be the only board member who agreed with Mutebile that if there were issues with appointments, the process needed to be investigated.

Shortly after this Mutebile’s health deteriorated and he travelled abroad on sick leave.

When he returned, he found a tonne of complaints about several appointments. The board had been petitioned but had ignored the complaints. Mutebile was concerned that he had not been consulted.