Magoola loses bid to block independent audit into Dei Biopharma bank loans

What the report says

The High Court has rejected a fresh attempt by Dei Biopharma proprietor Dr Mathias Magoola to stop an independent audit of loan facilities tied to Equity Bank Uganda and Equity Bank Kenya. The dispute centres on bank accounts linked to Dei Biopharma Ltd and DEI Industries International Ltd, the pharmaceutical business that has also received major government support to develop medicines.

According to The Observer, Magoola first went to court in 2024 asking for an account and reconciliation of his loan and current accounts, including a review of loan changes, consolidations and restructurings, and he sought repayment of sums he believed had been wrongly deducted. The court initially ordered KPMG to conduct a comprehensive audit. After that report was filed, the appointment was reviewed and the Institute of Certified Public Accountants of Uganda was directed to nominate a new independent firm.

ICPAU later appointed Clayton & Company, but Magoola returned to court through his lawyer, Fred Muwema, arguing that the institute had been compromised and should have consulted both sides before making the selection. Justice Suzan Abinyo dismissed the application, saying it was an abuse of process and that no evidence had been produced to support claims of bias or collusion. The ruling means the court-backed audit process can continue. More broadly, the case highlights ongoing scrutiny around the financing of Dei Biopharma and the handling of its banking arrangements.