{"id":66714,"date":"2023-06-27T15:27:48","date_gmt":"2023-06-27T12:27:48","guid":{"rendered":"https:\/\/www.kfm.co.ug\/?p=66714"},"modified":"2023-06-27T15:33:57","modified_gmt":"2023-06-27T12:33:57","slug":"mps-bou-clash-over-islamic-banking","status":"publish","type":"post","link":"https:\/\/www.kfm.dembefm.ug\/staging_h\/mps-bou-clash-over-islamic-banking\/","title":{"rendered":"MPs, BoU clash over Islamic banking\u00a0"},"content":{"rendered":"

A section of Members of Parliament on Tuesday protested the proposal by Bank of Uganda to reverse the requirement of establishing the Shari\u2019ah Advisory Council to operationalise Islamic banking in Uganda after Central Bank officials said there are no Muslims in the country with experience and knowledge to sit on the advisory council.<\/span><\/p>\n

Addressing MPs on Tuesday, Tumubweine Twinemanzi, the executive director, banking supervision at Bank of Uganda revealed that the country has no PhD holders in Islamic financing.\u00a0<\/span><\/p>\n

\u201cIf you are going to advise an existing supervisor, your standards or level of experience must be above that which the supervisor already has. We went and had discussions with various groups within the Muslim community trying to find these people internally,\u201d\u00a0 Twinemanzi noted.\u00a0<\/span><\/p>\n

\u201cWhat we have noticed is that we have very many people with knowledge and experience in Shariah law, actually, we do have PhDs in Islamic Financing in this country, and some have been teaching Islamic financing for close to a decade, but when you ask them if they have experience in financial services in this country, the answer is no,” Twinemanzi added.\u00a0<\/span><\/p>\n

Commenting on government\u2019s position, Butambala County Member of Parliament, Muwanga Kivumbi tasked Bank of Uganda to furnish parliament with evidence showing that there are no Ugandans experienced to sit on the advisory council.\u00a0<\/span><\/p>\n

\u201cIn all honesty, that is a very weak reason. The regulations you cite, are set by you, they aren\u2019t statutory. When we give you an act to implement, you have a duty to frame a regulation that implements the act as is, but not to fail it. I don\u2019t think you have looked around carefully and ascertained that there are no Muslim scholars that qualify, have you advertised and therefore flouted it around,\u201d Muwanga said.\u00a0<\/span><\/p>\n

Muwanga also rejected the claim made by Bank of Uganda officials that naming some Muslims to the board would anger others due to the various sects in Islam, citing division in Christianity.\u00a0<\/span><\/p>\n

Parliament was on Tuesday expected to pass amendments to the Tax Amendment Bill, 2023 to pave the way for the introduction of Islamic Banking in Uganda.<\/span><\/p>\n

Islamic banking is guided by Shari\u2019ah principles as laid down in Islamic commercial law. While Shari\u2019ah is a legal framework within which the affairs of a Muslim\u2019s life are governed, Islamic banking applies only a portion of Shari\u2019ah which relates to commercial transactions.<\/span><\/p>\n

Like other religions, Islam prohibits Usury\/interest which is a backbone of conventional banking system. In addition to interest, Islam prohibits other unethical business conducts such as; excessive uncertainty, gambling, speculation and materialism.<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

A section of Members of Parliament on Tuesday protested the proposal by Bank of Uganda to reverse the requirement of establishing the Shari\u2019ah Advisory Council to operationalise Islamic banking in Uganda after Central Bank officials said there are no Muslims in the country with experience and knowledge to sit on the advisory council. Addressing MPs on Tuesday, Tumubweine Twinemanzi, the executive director, banking supervision at Bank of Uganda revealed that the country has no PhD holders in Islamic financing.\u00a0 \u201cIf you are going to advise an existing supervisor, your standards or level of experience must be above that which the supervisor already has. We went and had discussions with various groups within the Muslim community trying to find these people […]<\/p>\n","protected":false},"author":36,"featured_media":66715,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"episode_type":"","audio_file":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","date_recorded":"","explicit":"","block":"","filesize_raw":"","jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"","parallax":"1","fullscreen":"0","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-normal","show_share_counter":"0","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"F j, Y g:i a","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"0","show_popup_post":"1","number_popup_post":"3","show_author_box":"1","show_post_related":"1","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_social_meta":{"fb_title":"","fb_description":"","fb_image":"","twitter_title":"","twitter_description":"","twitter_image":""},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[7],"tags":[1862,235],"class_list":["post-66714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-islamic-banking","tag-mps"],"_links":{"self":[{"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/posts\/66714"}],"collection":[{"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/comments?post=66714"}],"version-history":[{"count":0,"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/posts\/66714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/media\/66715"}],"wp:attachment":[{"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/media?parent=66714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/categories?post=66714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kfm.dembefm.ug\/staging_h\/wp-json\/wp\/v2\/tags?post=66714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}