News
Ugandan MPs want to ‘fence off’ bourse
Trading at the Uganda stockmarket. Uganda has taken a strong stance in reducing space for foreign participation in its stockmarket. Photo/FILE
Posted Sunday, September 28 2008 at 09:31
Mr Kato believes that if there had been close monitoring of the Safaricom trading, Ugandans would have faced minimal losses.
“Safaricom was a unique issue. Shares were offered to all East Africans. We appreciate there was a problem. Some of the issues involved in the Safaricom deal were outside our control. For instance, the mode of payment was dictated by Kenya,” Kato said
But Simon Rutega, the Uganda Security Exchange boss, says the current legal framework does not restrict movement of capital. “The legitimate concerns were delay of refunds. The others were investment risks,” he said.
On July 16, the Parliamentary Finance Committee wrote to Dyer and Blair, expressing its concern over the way the broker handled the Safaricom IPO.
“Many people have not been able to get their refunds as per the set date — June 9 — and some of the funds are loans. You have also introduced several new charges when making refunds. In addition, those who paid for new shares have not received any information,” the letter, signed by the Charles Oleny Ojok, the committee vice chairman, stated.
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