MPs find UDB violating parliamentary guidelines in lending Covid-19 stimulus funds

By Francis Lubega

20^th April 2021

The Parliamentary Finance Committee has noted disappointments by the Uganda Development Bank (UDB) Executive Director Patricia Ojangole for violating the set parliamentary guidelines of lending the Covid-19 stimulus package.

UDB has for the last couple of months been criticized for putting unnecessary conditions that cannot be fulfilled by most Small and Media Enterprises (SMEs) to access cheap capital.

Government, through the Ministry of Finance, had in June last year indicated it would recapitalize UDB with Shs1 trillion to support recovery of the economy, which continues to struggle due to Covid-19.

This was later towards the end of 2020 implemented when parliament passed over 455 billion shillings together with guiding procedures for lending the money to businesses that were affected by Covid-19 pandemic.

Appearing before the Finance Parliamentary Committee on Tuesday, Ojangole said that whoever accessed the money followed the normal bank processes and the bank has so far disbursed over 200billion shillings to beneficiaries.

MPs also further asked Ojangole to present to the committee the list of beneficiaries at the later date.

The money approved was to support a number of enterprises, especially in agribusiness, value addition, manufacturing, tourism, hotel and accommodation.