COSASE piles pressure on BoU over Shs140 billion Habba guarantee

What the report says

Kampala’s Parliament has put fresh pressure on the Bank of Uganda over a Shs140.487 billion guarantee linked to Habba Group that has remained unresolved since 2017. According to The Independent Uganda, the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) suspended its questioning of central bank officials after finding their explanations incomplete and asking for more documentation.

The committee focused on the exposure listed in the Auditor General’s report for the 2024/25 financial year. Bank of Uganda’s head of legal, Dorothy Masifa Ochola, told MPs that the guarantee followed instructions from the Ministry of Finance and that the central bank had been in discussions with the ministry and external lawyers about possible resolution options. She also acknowledged that no court action has been filed against Habba Group and that the bank had not directly pursued recovery from the company.

MPs challenged the lack of security, the absence of clear information on the company’s current ownership, and what they described as inconsistent accounts over who benefited from the funds. Bank of Uganda Governor Michael Atingi-Ego asked for more time to submit a fuller written response and said earlier committees had already examined the issue. COSASE rejected that approach, saying the current Parliament must establish what happened during the present audit period.

The committee has directed Bank of Uganda to return with details on the guarantee, due diligence, recovery efforts and correspondence with the Ministry of Finance, and plans to summon Habba Group representatives as part of its wider review.