Bank of Uganda (BOU) is holding Ugx 69Bn that has been dormant for over two years on mobile money accounts. However, over Ugx 300M has been paid out by claimants out of the Ugx 69Bn that has been collected from telecom companies of the dormant accounts.
While speaking to journalists, on August 31, 2023, the BOU Executive Director Finance, Richard Byarugaba said that, it is impossible for BOU to say that this amount is solely for the deceased persons when the record of the dead has not been reported.
He added that, the government treasury still has about Ugx 68.7Bn which in 2027, will be sent to the consolidated fund.
“We shall start sending money to the consolidated fund in 2027. We track the money which we have heard for seven years. Then we take a portion. We don’t take everything, but only that which has been with us for seven years,” Byarugaba said.
Byarugaba said that, after a period of seven years as provided by law, BOU takes the dormant money that has been with them for that period of time.
He added that, if the money is not claimed, it contributes towards construction of government projects and therefore, government may use it to construct social infrastructures like school, hospital or something else for public use.
Byarugaba explained the process of claiming funds left on mobile money accounts for deceased persons, clarifying that, mobile money is sent to the claimant from BOU after the necessary procedures have been taken.
“You don’t need a pin number. Those are people we are looking for. You go to MTN or Airtel then they identify you using a death certificate, letters of admission and National Identity. The claimant does not have to come to Kampala if they are upcountry, since verification is done by the telecom company and then the money is sent from BOU and deposited on their mobile accounts using mobile money,” he stressed.
Section 57 of the National Payment Scheme Act 2020 sets a time line of seven years within which any claimant can claim for the funds from Bank of Uganda before it is transferred to the consolidated fund. After this period, any claim to the funds can be made to Ministry of Finance.
In April 2023, MTN Uganda transferred Ugx 2.7Bn from their dormant mobile money accounts to Bank of Uganda which was for the period ending in December 2022. This money was lying idle and dormant hence transferred back. The procedures are clearly communicated that one cannot be able to lay a claim, and if they don’t, then they will contribute towards the construction of government projects.
