The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has suspended its inquiry into a disputed Shs140.487 billion Bank of Uganda financing arrangement involving Haba Group after Finance Minister Henry Musasizi failed to appear before the committee.
The committee, chaired by Kyadondo East MP Muwada Nkunyingi, had summoned Musasizi alongside Bank of Uganda Governor Dr Michael Atingi-Ego and officials from Haba Group to clarify the government’s role in the 2017 arrangement.
The committee adjourned the proceedings until Tuesday next week after members failed to establish why Musasizi, who had requested to appear on Thursday, did not turn up.
Nkunyingi said the minister’s presence was important because BoU had previously told the committee that the guarantee or comfort arrangement extended to Haba Group was issued on instructions from the Ministry of Finance.
Auditor General’s records indicate that Shs140.487 billion remains unsettled by Haba Group to BoU.
The committee initially suspended the hearing for 30 minutes and sent CID officers attached to Parliament to the Ministry of Finance to establish the minister’s whereabouts.
Detective Fredrick Chemonges later told the committee that the officers found Undersecretary Edward Sengonzi Damulira, who said Musasizi had arrived at the ministry earlier but had engagements outside Kampala. Chemonges also said other ministers at the ministry were away from their offices.
Nkunyingi said the committee could not continue hearing only one side of the matter when a key participant had repeatedly failed to appear.
“We cannot invite witnesses whom we intend to interact with as a team several times, and the one particular witness chooses not to appear and doesn’t offer us communication,” Nkunyingi said.
The dispute under investigation dates back to 2017, when BoU says it provided a guarantee to Haba Group following instructions from the Ministry of Finance.
According to the central bank’s previous testimony before COSASE, the commercial bank involved later recovered the money from BoU, leaving the central bank seeking to recover the funds from Haba Group.
However, Haba Group chairman Hassan Basajjabalaba gave the committee a different account when he appeared before it recently.
Basajjabalaba disputed the Shs140.487 billion liability, saying Haba did not receive the full amount. He instead put the group’s broader claim at Shs168.8 billion.
The conflicting figures have prompted COSASE to seek documentary evidence from Haba Group, BoU and the Ministry of Finance before determining the actual financial position.
Following Musasizi’s absence, Busia Municipality MP Ismail Sowedi Mulemya proposed that the committee consider initiating a censure process against the minister, describing his failure to appear as disobedience of the committee.
Some MPs, however, urged caution.
Rubanda West MP Bruce Kabaasa noted that Musasizi had himself requested to appear on Thursday and said the committee should first establish the circumstances surrounding his absence.
Mbarara City North MP Christopher Bakashaba and Butaleja District MP Sarah Annet Logose also supported seeking an explanation from the minister before taking further action.
Bukoto South MP Hakim Kizza Sawula backed consideration of censure, arguing that the Finance Minister has a responsibility to account for public finances and should explain the circumstances surrounding the disputed Shs140 billion arrangement.
Nkunyingi said Parliament’s rules provide a procedure for censuring a minister and that COSASE would consider the matter when it resumes.
The chairperson consequently suspended the committee’s sittings, including a planned engagement with the National Social Security Fund (NSSF) on Monday.
The committee will resume on Tuesday to consider Musasizi’s conduct and whether the circumstances warrant further action, including a possible censure process.
Nkunyingi also directed the Clerk to write to the appointing authority and the Speaker of Parliament, notifying them of the minister’s non-appearance and the committee’s inability to proceed with the inquiry.
The development comes weeks after Speaker of Parliament Jacob Markson Oboth cautioned accounting officers against ignoring summonses from parliamentary committees.
Speaking on August 19, as Parliament prepared for a three-week recess, Oboth said appearing before parliamentary committees is a constitutional obligation and not a matter of courtesy.
“I would like to remind all accounting officers that it is their constitutional obligation to be accountable to the citizens of this country through Parliament, where they are represented. I therefore beseech them to appear whenever summoned,” Oboth said.
The Speaker also warned that Parliament would not shield officials who interfere with committee chairpersons carrying out their oversight responsibilities.
The COSASE inquiry is expected to resume on Tuesday, when the committee will consider the minister’s absence and continue examining the conflicting accounts surrounding the Shs140.487 billion BoU-Haba Group arrangement.
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