First, the BOU did not take Shs 478 billion from an undisclosed account. The BOU provided a loan to Crane Bank and this money came from the BOUs own resources. The BOU is a Central Bank and like any other Central Bank it can create financial assets and liabilities. In this case the BOU created a financial asset the loan to Crane Bank which was matched by an equivalent liability an increase in the money supply.
Prof Nawangwe argues that the suspension that runs until further notice is meant to ensure safety and security of members of the university community and property as well provide serene environment for peaceful activities of the university.
