East African Business Week

KAMPALA, UGANDA - Bank of Uganda (BoU) has taken over the management of Tropical Africa Bank, one of the companies in Uganda with ties to the Libyan government.
This has come as a result of Uganda's compliance with the relevant UN resolution to freeze the assets of Col. Muammar el Gaddafi.
The Libyan Foreign Bank, which appoints the top management of the Tropical Africa Bank no longer, has powers to appoint top management and the running of the bank. The powers for the BoU to take over Tropical Bank are provided for in the 2004 Financial Institutions Act of Uganda.
"In order to ensure that Tropical bank can continue to operate normally as a commercial bank in Uganda, the Bank of Uganda has taken a series of measures which are designed to ensure that the management of Tropical bank is fully independent of the Libyan Government and associated entities," Mr. Louis Kasekende, the deputy governor Bank of Uganda told the press in Kampala last Friday.
"These measures, which are taken under the powers granted to the Bank of Uganda under the Financial Institutions Act include the removal from office with immediate effect of managers and the board members appointed by the Libyan Foreign bank.
"The Bank of Uganda is appointing a new management team and board in consultation with Government," said Kasekende.
Kasekende assured shareholders and customers that Tropical bank is in a sound financial condition and will continue with its normal business operations.
"The customers and clients should not panic. Everything is going to run normally as only a change in top management is going to be affected," stressed Kasekende.
 The Government of Uganda last week announced its compliance to the UN sanctions when it was confirmed that Uganda's Ambassador to the UN formally asked for guidance on the February 26 resolution of how to implement the asset freeze, and to clarify on a range of points in regard of ownership and affected persons.
The issue was raised on the day after the asset freeze resolution was passed in New York by the UN, but subsequent statements in Kampala, by companies affected by the freeze refused to accept the possibility of any effect.
Uganda's state minister for international cooperation Henry Okello Oryem last week told parliament that Uganda had complied with the UN resolution regarding the freezing of all funds and assets owned or controlled by President Muammar Gadaffi's regime.
He explained to parliament that the government had written to the UN secretary general Ban Ki Moon, over the modalities of complying with the resolution.
Other companies that will be affected by the freeze include Uganda Telecom and National Housing & Construction Company.