Trouble In Paradise As BoU Makes Shs855Bn Losses

Trouble In Paradise As BoU Makes Shs855Bn Losses

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By Andrew Irumba

Officials at Bank of Uganda are in deep trouble after it emerged that they registered losses of up to Shs855Bn in the Financial Year 2018/2019, which is almost a billion shillings.

Spy Uganda has learnt that the December 2019 Auditor General’s report has named Bank of Uganda as the most loss-making government venture in Uganda.

The report authored by Auditor General, John Muwanga, highlighted that in comparison to the previous year 2018, 13 government enterprises posted improved (increased profits or reduced loss) performance, with Uganda Electricity Generation Company, Uganda Property Holding and Civil Aviation Authority registering over 300% percentage increase.

However,  Uganda Development Corporation, Uganda Air Cargo Corporation and Bank of Uganda posted losses for the year from profit positions in the previous year with a reduction in performance of over 300%.

According to the breakdown of the AG’s report, Bank of Uganda made losses totaling to Shs855,582,000,000 up from the Shs424,113,000,000 in profits the company recorded in 2018.

The report also revealed that Uganda Development Corporation made losses of Shs17,571,299,000 from the Shs383,820,000 profits the company made last year, while Kilembe Mines Limited maintained extended its loss-making streak in 2019 with Shs2,321,001,684 losses recorded an increment from Shs1,624,302,143 losses in 2018.

The other companies that recorded losses were Capital markets Authority Shs43,833,000, although this was a reduction from Shs1,330,205,000 the company made in 2018 and the other loss-making company was NEC Tractor Project whose losses soared to Shs389,305,722 up from Shs70,636,203 recorded in 2018.

However, economic experts contend that if this trend continues in the financial year 2020/2021, then the country’s economy is doomed!

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