Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has ordered the arrest of the top management of the Microfinance Support Centre Limited (MSC) after they failed to appear before the committee for the second time.
COSASE Chairperson Muwada Nkunyingi issued the directive on Tuesday, ordering the arrest of MSC Executive Director and Chief Executive Officer John Peter Mujuni and other directors.
The officials had been summoned to answer questions arising from the Auditor General’s report on the institution’s financial management, loan recovery and overall performance.
Nkunyingi said the committee had invited MSC management on two occasions, but the institution’s top executives failed to honour the summons.
He said COSASE would now invoke Parliament’s powers to compel the officials to appear and account for public resources under their management.
The confrontation comes against the backdrop of serious concerns raised by the Auditor General about MSC’s financial position and management of government-funded programmes.
According to the Auditor General’s report for the financial year 2024/2025, MSC recorded a loss of Shs22.67 billion, while loans amounting to more than Shs63 billion were written off.
The audit also identified weaknesses in loan recovery, monitoring of borrowers, performance of restructured loans and the collection of outstanding debts.
Auditors further found that some collateral used to secure loans had not been updated for periods of up to nine years, potentially exposing public funds to significant financial risks.
Management of funds under the Emyooga programme also came under scrutiny, with the committee informed that Shs13.21 billion remained unutilised and was returned at the end of the financial year.
The Auditor General also raised concerns over procurement, including failure to fully implement planned procurements, inadequate systems for monitoring performance and weaknesses in the management of non-current assets.
Jinja South MP Timothy Batuwa questioned the circumstances under which loans were disbursed to beneficiaries, particularly in light of the more than Shs63 billion that was subsequently written off.
Batuwa called for the Ministry of Finance to suspend further disbursements to MSC until the institution accounts for funds already committed. He also called for the removal of the chief executive.
Nkunyingi said COSASE would not allow government agencies, companies and state enterprises to decide for themselves whether to respond to parliamentary summons.
He accused MSC management of previously seeking intervention from the Speaker of Parliament following an earlier invitation by the committee, but said the current Parliament had made it clear that accounting officers must personally appear before committees and account for public resources.
“We shall not inherit any syndicate,” Nkunyingi said, stressing that every Auditor General’s report referred to COSASE would be subjected to scrutiny.
He maintained that MSC could not avoid parliamentary oversight simply because it operates as a company, arguing that the Government of Uganda has an interest and shareholding in the institution.
Nkunyingi said the committee would also investigate why MSC management had repeatedly failed to attend the hearings and whether any individuals or institutions had attempted to shield the entity from parliamentary scrutiny.
The directive comes as the new COSASE leadership steps up efforts to enforce Parliament’s oversight role over government agencies, public corporations and statutory bodies.
Last week, Speaker of Parliament Jacob Marksons Oboth-Oboth warned accounting officers against avoiding appearances before parliamentary committees.
MSC is the second government-linked entity in two days to face pressure from COSASE over failure to attend a scheduled interface.
On Monday, the committee summoned Uganda Airlines Chief Executive Officer Girma Wake and members of the airline’s senior management after they failed to appear for a scheduled hearing.
However, Uganda Airlines subsequently communicated with COSASE and explained its absence.
In a letter to the committee on Tuesday morning, Girma confirmed that the airline’s management team would appear before COSASE on Thursday as scheduled.
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