EXCLUSIVE: Gen. Museveni directs Kasaija, board to shuffle officials at Housing Finance Bank over dismal performance

Gen Museveni has asked Minister Kasaija to deal with poor performance of Housing Finance Bank

KAMPALA —President Yoweri Museveni has directed Finance Minister Matia Kasaija to shuffle officials at Housing Finance Bank, UG Standard has leant.

The Housing Finance Bank is owned by the Uganda National Social Security Fund (50.0 percent) and The government of Uganda, through the Uganda Ministry of Finance, Planning and Economic Development who own upto 49.18 percent of the shares.

Highly placed sources at Finance Ministry who could only speak on condition of anonymity because of the sensitivity of the matter said the President made the directive after multiple intelligence briefings and another report sent to him by the economic monitoring directorate of the finance ministry.

Another source at the high table of the matter said the President believes that Housing Finance Bank hasn’t served the purpose, a development also contained the economic monitoring briefings to the president and cabinet.

A source said that Gen. Museveni in a letter asked Minister Kasaija to work with the Board of Housing Finance Bank to identify individuals of impeccable character, creative and strong finance management pedigree to match.

Whereas it’s not immediately clear whether Minister Kasaija has officially communicated the same to Housing Finance Bank, this website has learnt that the news has sent shock waves to top lieutenants at HFB, whom the president has described as weak.

Insiders say, Museveni was very specific in his directive and that he asked Minister Kasaija and the board to look for someone who can restore the bank whose reputation has over the last few years suffered due to multiple scandals.

Sources at the high table of the development in the ministry of finance told the website that President Museveni believes that Housing Finance Bank has failed to innovate a better way of providing cheap mortgages for Ugandans.

The President has publicly aimed a major dig at the bank’s top leadership for sleeping while other agencies such as National Social Security Fund (NSSF) and National Housing Company are innovating.

“Our people like living a good life but at a cheaper cost. This is what Housing Finance Bank should have done. Instead they are interested in grabbing people’s properties,” Museveni is quoted to have said.

Housing Finance Bank Managing Director Michael Mugabi (PHOTO/Courtesy)

While launching the NSSF Lubowa housing project, President Museveni called out Housing Finance Bank Managing Director Michael Mugabi who stammered in his response.

Museveni asked Mr Mugabi why he had failed to implement a similar investment and wondered whether the bank is bankrupt.

“Why have you failed to provide cheap mortgages?” Museveni compelled Mugabi to respond to the cause.

Speaking recently, Dr. Joseph Muvawala, one of the leading economists and the Executive Director, National Planning Authority (NPA) said Housing Finance Bank and Post Bank were not serving their primary roles.

Muwala who advises President Museveni is said to be behind the move to have Housing Finance Bank leadership overhauled.

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