By Sekaggya Seka Moses
The government has refused to provide a list of individuals who have benefited from loans from the Uganda Development Bank (UDB), citing confidentiality agreements with its clients.
This decision was made despite the bank seeking parliamentary approval to borrow $175 million from the Arab Bank for Economic Development in Africa (BADEA) for its capitalization and to guarantee a $100 million loan for its activities.
Minister of State for Finance Henry Musasizi explained that while the information is available in their records, the bank’s client relationships require confidentiality.
“This question isn’t new, it has arisen before, and when it arose, we preferred to share information with the Speaker, but not with the public,” Musasizi said.
Godfrey Onzima, MP for Aringa North, raised concerns that the bank seems to be centralized in Kampala, with limited presence in other regions.
“It doesn’t portray any national characteristics, and even if one goes there to access money, there are hurdles you jump until you give up,” Onzima said.
Yusuf Nsibambi, MP for Mawokota South, questioned how the government can guarantee a $100 million loan for UDB while struggling to capitalize the bank itself.
“The borrowing presupposes that the country isn’t doing well, and we have to recapitalize the bank. At the same time, we are considering a guarantee. A guarantee presupposes that the guarantor is a surety who is doing well, which is which?” Nsibambi asked.
The Uganda Development Bank is a national development finance institution mandated to accelerate socio-economic development in Uganda through sustainable financial interventions.
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