{UAH} Geraldine Ssali, former deputy MD, NSSF makes a good case here, I agree with her
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7:58 AM |
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Geraldine Ssali, former deputy MD, NSSF makes a good case here, I agree with her
I have been forced to come out of the Kamooli on the issue of Jamwa being given a 12-year sentence. I should also mention that I have never got a chance to meet him or even talk to him.
However, as a Finance professional, I have never really understood his crime on this very transaction of liquidating a bond earlier than Maturity. Bonds carry risk (Now in hindsight these bonds were Crane Bank Bonds which Bank is now no more).
This means they are also speculative in nature and also carry risk so a manager can make a decision exit early if they feel the opportunity cost foregone on the remaining interest is not better than the next best alternative use for that money!
This is the reason Managers and Officers liability insurance exists - To cover any losses incurred in the process of doing legitimate business as anticipated.
Otherwise, anybody who cried "Bail out" in 2015 should be punished when their businesses made losses including economic losses.
The judges with all due respect to them may have looked only at the "liquidity" position of NSSF and ignored all the other factors like interest rates, exchange rates, cost to income ratio and all the other staff they consider "boring". They have set the wrong precedent/ message.
The indirect implications of this ruling are that the judgment has killed a percentage of the secondary and primary bond market. Financial and Fund Managers may not be willing to participate in these bond markets unless they can demonstrate beyond reasonable doubt, the dire need for liquidity.
More unnecessary red tape and bureaucracy. This is virtually impossible in the world of finance where quick decisions are expected inorder to benefit from these trades and make money. I would challenge those Honorary judges. I suspect a political melancholy than a genuine cause of financial loss.
On the strong message needed on managers "not playing with worker's money", they could have got him on all the other stuff like Temangalo along with his board and the rest of the lot that was involved but not on this one.
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-- I have been forced to come out of the Kamooli on the issue of Jamwa being given a 12-year sentence. I should also mention that I have never got a chance to meet him or even talk to him.
However, as a Finance professional, I have never really understood his crime on this very transaction of liquidating a bond earlier than Maturity. Bonds carry risk (Now in hindsight these bonds were Crane Bank Bonds which Bank is now no more).
This means they are also speculative in nature and also carry risk so a manager can make a decision exit early if they feel the opportunity cost foregone on the remaining interest is not better than the next best alternative use for that money!
This is the reason Managers and Officers liability insurance exists - To cover any losses incurred in the process of doing legitimate business as anticipated.
Otherwise, anybody who cried "Bail out" in 2015 should be punished when their businesses made losses including economic losses.
The judges with all due respect to them may have looked only at the "liquidity" position of NSSF and ignored all the other factors like interest rates, exchange rates, cost to income ratio and all the other staff they consider "boring". They have set the wrong precedent/ message.
The indirect implications of this ruling are that the judgment has killed a percentage of the secondary and primary bond market. Financial and Fund Managers may not be willing to participate in these bond markets unless they can demonstrate beyond reasonable doubt, the dire need for liquidity.
More unnecessary red tape and bureaucracy. This is virtually impossible in the world of finance where quick decisions are expected inorder to benefit from these trades and make money. I would challenge those Honorary judges. I suspect a political melancholy than a genuine cause of financial loss.
On the strong message needed on managers "not playing with worker's money", they could have got him on all the other stuff like Temangalo along with his board and the rest of the lot that was involved but not on this one.
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Allaah gives the best to those who leave the choice to Him."And if Allah touches you with harm, none can remove it but He, and if He touches you with good, then He is Able to do all things." (6:17)
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