Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has suspended its proceedings into a disputed Shs140.4 billion Bank of Uganda liability after Finance Minister Henry Musasizi failed to appear before the committee.
COSASE Chairperson Muwada Nkunyingi directed officers from the Criminal Investigations Directorate (CID) to locate Musasizi after the minister did not attend the hearing, despite reportedly requesting the date and committing in writing to appear.
Nkunyingi temporarily paused the proceedings for about 20 minutes, saying Musasizi had neither appeared nor provided an explanation for his absence.
When the CID officers returned, Detective Inspector of Police Chemonges Frederick, who is attached to COSASE, told the committee that officials from the Ministry of Finance had indicated that Musasizi was engaged outside Kampala.
Chemonges further reported that the ministry’s Undersecretary had told the officers that all the ministry’s ministers were out of town.
The explanation came after the committee had already taken steps to locate the minister, raising further questions over his failure to attend the scheduled hearing.
Nkunyingi later warned that officials who fear being questioned by Parliament should consider leaving office rather than avoiding accountability.
“If they fear to be cross-checked or they fear accountability, they have a room to resign and allow able people who are willing to appear before Parliament to be those officers,” Nkunyingi said.
Musasizi was expected to help COSASE clarify the role of the Ministry of Finance in a financial arrangement involving businessman Hassan Basajjabalaba and HABA Group, which resulted in a Shs140.487 billion exposure involving Bank of Uganda.
The matter dates back to 2017, when Bank of Uganda provided a guarantee linked to financing for HABA Group. Parliament is now examining how the liability arose and why it remains unresolved.
Bank of Uganda officials previously told COSASE that the guarantee was issued following instructions from the Ministry of Finance. The committee has consequently sought answers from the ministry on its involvement in the transaction.
Basajjabalaba appeared before COSASE on September 23 and disputed the figures contained in the Auditor General’s report. He said HABA Group had not received the full amount described as the Shs140.487 billion liability and instead put his outstanding compensation claim at Shs168.8 billion.
The conflicting accounts have left COSASE seeking clarification on the amount involved, how the funds were disbursed and the parties responsible for the outstanding exposure.
Following Musasizi’s non-appearance, the committee suspended the proceedings and resolved to continue with the matter at a later date.
The committee also resolved to notify the Speaker of Parliament and communicate with the appointing authority regarding the minister’s failure to attend.
The latest development adds another twist to the ongoing investigation, which has already seen COSASE question Bank of Uganda officials and summon Basajjabalaba over the disputed financial arrangement.
The committee is now expected to seek further explanations from the Finance Ministry as it attempts to reconcile the Auditor General’s records, Bank of Uganda’s position and Basajjabalaba’s testimony.
At the centre of the inquiry is a simple but significant question: what happened to the Shs140.4 billion, and why does the liability remain unresolved nearly a decade after the guarantee was issued?
