Court orders Bishop Kabushenga to refund Shs 405m in unaccounted donor funds

What the report says

The High Court has ordered Bishop Dr Hamlet Kabushenga Mbabazi to repay more than Shs 405 million in donor money linked to projects under the Child to Family Community Development Organisation (CHIFCOD), after finding that the funds were not properly accounted for. The ruling, delivered by Justice Anna Bitature Mugenyi of the Commercial Division, also requires Kabushenga to pay 10% annual interest from January 12, 2022, until full repayment, together with the costs of the suit.

The Observer reported that the court accepted Honest Wilkins Natukwasa and Eleanor Nyamishana as the legitimate directors of CHIFCOD after Kabushenga resigned in April 2020, while noting that all three remain members of the organisation. Kabushenga, a former MP for Kinkiizi East County and bishop of the Free Methodist Church, founded CHIFCOD in 2016. The organisation is connected to schools and other education ventures, including Great Lakes Regional College Kanungu and several primary and secondary schools in Kanungu district.

The dispute stemmed from complaints by several funders and partners, including Uganda Development Initiative, Kirima Limited, a German church group and CHIFCOD Enterprises Limited, over how money meant for school construction and related obligations was used. According to the article, the plaintiffs said some buildings remained incomplete, taxes were still owed and certain property and loan transactions raised concern. Kabushenga denied the claims and challenged the new directors’ authority.

The case is significant because it touches on accountability for donor-funded education projects and has already affected operations at Great Lakes Regional University, which was previously closed during the leadership dispute.