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Insurance Regulatory Authority Resists Merger With BoU

The Executive Director of the Insurance Regulatory Authority (IRA) Ibrahim Lubega Kaddunabbi has sternly opposed the Authority’s impending merger with Bank of Uganda, as directed recently by President Yoweri Museveni and his cabinet.

Kadunabi says the merger was not properly thought through and that there was no sufficient consultation and research about it.

While the idea of merging in itself isn’t bad, he says, the proposed method of doing it is problematic.

“The process is flawed because cabinet has made an over whelming decision without engaging us the people they are merging and also they did not look at the impacts of the merger” he said.

Under the president’s directive to get rid of various government authorities and agencies, the Insurance Regulatory Authority is meant to become small unit under the Central Bank which regulates financial institutions.

Speaking at a public debate on rationalization of government agencies at Makerere University Business School, Kaddunabbi revealed that IRA is one of the best performing agencies in the country and does not drain government resources.

“IRA should not be among the agencies to be merged, because we are one of the most profitable agencies in the country,” he said.

Kaddunabbi is not the only Chief Executive of an agency that has openly called out government on the issue.

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Earlier, Allen Kagina the head of Uganda National Roads Authority sounded a similar warning about the merging process.

Government put out the lists of agencies to be merged in September 2018 with an aim go prevent duplication of roles and wastage of public resources.

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