MPs fault Bank of Uganda over failure to recover Shs 140bn from Haba Group

What the report says

Members of Uganda’s parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) have pressed the Bank of Uganda (BoU) to explain why it has not recovered Shs 140.487 billion tied to a loan guarantee involving Haba Group Ltd, nearly nine years after the arrangement was issued. The matter came to the committee’s attention through the Auditor General’s report for the 2024/25 financial year, according to The Observer.

The article says the exposure is connected to the wider compensation saga involving businessman Hassan Bassajjabalaba and companies linked to cancelled market and Constitutional Square leases in Kampala. Parliament questioned why BoU had not directly pursued Haba, whether any security was taken before the guarantee was granted, and who should ultimately bear responsibility for repayment. BoU legal head Dorothy Masifa Ochola said the guarantee followed instructions from the Ministry of Finance and that the bank had been engaging the ministry and external lawyers, but she acknowledged no court case had been filed and no direct recovery action had been taken against Haba.

BoU Governor Michael Atingi-Ego told MPs the central bank would provide a written response and said the Ministry of Finance had instructed BoU to issue letters of comfort to support lending to Haba. However, Cosase members were dissatisfied and postponed the session, directing BoU to return with records on the guarantee, due diligence, recovery efforts, and correspondence with the ministry.

The committee also said it would summon Haba Group representatives, including Bassajjabalaba, to clarify the company’s ownership and current status.