High Court asked to invalidate all Uganda Shilling notes in circulation

A Ugandan citizen has petitioned the High Court seeking a declaration to abolish all the Uganda Shilling notes and coins in circulation.

In a petition before the Civil Division of the High Court in Mukono,  Mr Brian Kasajja says that the Governor of Bank of Uganda is not absent from office but dead, and that there is no statutory, constitutional or contractual legal possibility for the dead governor to be deputised by the living deputy governor.

 Kasajja is seeking a declaration that the continued circulation of bank notes signed by the Deputy Governor Bank of Uganda, Dr. Michael Atingi-Ego unlawful, irrational, and a nullity in  law.

“An order of mandamus doth issue compelling and ordering the respondent to give a (15) fifteen days’ notice in the Uganda Gazette to re-call all Uganda Shilling bank currency notes bearing the signature of the Deputy Governor Dr Michael Atingi-Ego, in accordance with Section 23(3) of the Bank of Uganda Act, 1966, Cap.51 (as amended), and all Uganda Shilling bank currency notes bearing the electronic signature of the late Governor Prof. Emmanuel Mutebile (R.I.P) on and upon payment of the face value as they suffer from acute impaired legal status and are legally contagious to the monetary economy,” he pleads.

In January 2022, former BoU Governor Emmanuel Tumusiime Mutebile passed away in a Nairobi hospital, leaving the position vacant to-date. Being a constitutional office, President Museveni is supposed to appoint his replacement but he has, for unknown reasons, dilly-dallied over the exercise this function, leaving BoU leaderless and in limbo.

Mr Kasaija argues that the bank notes bearing the signature of Dr Atingi-Ego, are not legal tender because the deputy governor is not authorised to sign them.

“The powers of a deputy governor only arise from the existence of the governor in office and serving as such there are no express statutory or constitutional functions of a deputy governor. Accordingly, a deputy governor can only carry out and execute the powers vested in that office only when the governor is in place exercising his powers, as the deputy governor only and impliedly implements what the governor has resolved upon or delegated unto him,” he states in his petition.

He alleges that the death of a BoU governor renders the deputy governor devoid of any constitutional or statutory authority to sign on currency notes. The same, he said, applies to the carrying out of any responsibilities as deputy governor since the governor’s office is not fully constituted, which has exposed the country all sorts of economic risk.

“The actions and omissions of the respondent (BoU) are detrimental to the entire country and economy hence posing a grave risk to the monetary system with high propensity to cause loss of public confidence in our currency notes which must be discouraged by court,” the court documents read.

The petitioner asks the court to quash all bank notes bearing the signature of Dr Atingi-Ego and “declare, proclaim and affirm that all actions and omissions of the respondent (BoU) done under Section 10 of the Bank of Uganda Act, 1966, Cap.51 (as amended), devoid of its lawful constitutional authority, ‘the board’ with a governor as its chairperson are ultra-vires, grossly unlawful, illegal and of no legal consequence or colour of resemblance”.

Mr Kasaija equally wants the court to declare that Uganda Shilling currency signed by the late Mr Mutebile is no longer legal tender since his electronic signature embedded in the bank notes is now invalid in law. He argues that there is no survivorship or inheritance attached upon death of the signature holder, and authority to sign must be revoked upon the death of a signee in accordance with provisions Section 69(a) of the Electronic Signatures Act, 2011

The High Court will hear from the petitioner that the continued action of signing, continued issuance and continued circulation of Uganda Shilling bank notes signed by Dr Atingi-Ego amounts to a direct usurpation of the constitutional authority of the governor and his appointing authority, the President.