More than Shs400 billion originating from Uganda is being held in Swiss banks, a breakdown by the Bank For International Settlement claims.
Based on the geographical locations of countries with accounts in Swiss banks, the breakdown does not include the particulars of the individuals or organisations running those accounts.
It does not also take into consideration money that individuals and organisations based in Uganda might have deposited in nominee accounts (accounts held in third-party names) or accounts in foreign branches of Swiss banks.
Bank of Uganda yesterday declined to provide any information about the likely owners of the money, saying it needed more time to look at the information.
Information minister Mary Karooro Okurut also declined to comment on the matter while top Finance ministry officials were unavailable for comment.
According to the breakdown, Uganda features prominently among the African countries with huge stashes of money, amounting to $162 million (about 402billion) in the several banks in Switzerland.
The report shows that most of the money held in Swiss banks originates from Europe and America, followed by Middle East and Asian states including India and China.
Swiss banks have a reputation of secrecy and are popular among people who do not wish to disclose the origins of their money. There is no evidence to suggest that the money from Uganda was acquired through legitimate or illegitimate means.
Swiss banks have long been a favourite of African officials seeking a safe place for money they acquire while in power.
Although the Swiss bank’s policy of secrecy and customer protection allows for such money to be paid in, Switzerland has adopted what is arguably the world’s toughest law for repatriating the ill-gotten gains of corrupt politicians to the people of those countries, allowing the country to return potentially corrupt assets more easily to where it belongs.
Money recovery
Discussions are currently underway to try and recover money believed to have been stashed in Swiss accounts by deposed Egyptian president Hosni Mubarak.
Former Nigerian dictator Sani Abacha also stashed a large sum of money in Swiss banks. After a lengthy legal tussle about $1.2 billion was repatriated to the Federal Republic of Nigeria (including from Switzerland, Luxembourg, Jersey, Liechtenstein, Belgium and the UK).
In addition to freezing about $640 million, the Swiss judicial authorities that handled the case also indicted Mohammed Abacha and Atiku Bagudu, both close people to the late Nigerian President, under Swiss legislation regarding money-laundering, fraud and taking part in a criminal organisation.
Switzerland’s Restitution of Illicit Assets Act provides a roadmap for nations who seek Swiss government help in recovering funds that their corrupt leaders stored in Swiss banks.
iladu@ug.nationmedia.com