Uganda: Museveni, Mutebile clash over jets cash

The Governor of the Central Bank says President Museveni’s erratic policies and the government’s fiscal indiscipline have led to higher inflation and declining foreign reserves, a UK-based newspaper reported. Mr Emmanuel Tumusiime-Mutebile told the Financial Times newspaper that he had disagreed with Mr Museveni over the decision to spend $740 million on jet fighters, which has pushed reserves down from six to four months of import cover. The Ministry of Defence, under President Museveni’s directive, withdrew a reported $400 million (Shs960 billion) from the Central Bank to pay for the fighter jets without parliamentary approval.