Musasizi Seeks More Time to Explain Shs140bn HABA Group Letter of Comfort

What the report says

Finance Minister Henry Musasizi has asked Parliament’s Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) for more time to respond to questions about a 2017 instruction to the Bank of Uganda linked to HABA Group and a Shs140 billion letter of comfort. According to Nile Post, the request came in a letter dated October 6, 2026, after Musasizi missed a committee meeting scheduled for October 1.

In his explanation, Musasizi said the ministry needs time to trace older records and consult officials familiar with the transaction. He said the issues under review go back many years and that some of the people with institutional memory have since left their posts. He added that technical officers have been assigned to compile the relevant information for the committee.

COSASE is examining the Auditor General’s report on the Bank of Uganda for the year ended December 31, 2025, including the circumstances under which the central bank was instructed to issue the comfort letter. The committee is seeking to establish who approved the arrangement and whether it created any obligation or exposure for the government or the central bank.

A letter of comfort is generally understood as an assurance that may support a transaction, though its legal effect depends on the wording and context. The committee is expected to set a new date for the ministry’s appearance. The matter is significant because it touches on public accountability, central bank processes and possible fiscal risk.