The Anti-Corruption Court in Kampala has granted bail to Matthew Bagonza, the Head of the Secretariat of the Presidential Advisory Committee on Export and Industrial Development (PACEID), who is facing charges of abuse of office and money laundering.
Lady Justice Jane Okuo Kajuga granted Bagonza, 39, cash bail of Shs20 million and ordered each of his five sureties to execute a non-cash bond of Shs30 million. The sureties include three Members of Parliament, a government minister and Bagonza’s mother, Najjuma Victor Bagonza.
In his bail application filed last week, Bagonza, through his lawyers, John Isabirye and James Muhwezi, argued that he had a fixed place of abode, substantial sureties and no history of absconding.
The defence further submitted that he was not a flight risk, would not interfere with prosecution witnesses and had no known criminal record. His lawyers also told the court that he was the sole breadwinner of his family.
However, the prosecution, represented by Paul Kato on behalf of the Director of Public Prosecutions (DPP), opposed the application, arguing that the seriousness of the offences could tempt Bagonza to flee the country.
Relying on an affidavit by investigator Agrey Mpamizo, the prosecution also questioned the suitability of the proposed sureties, arguing that their demanding public responsibilities could make it difficult for them to ensure Bagonza’s attendance in court whenever required.
Justice Kajuga, however, rejected the argument that the sureties’ public duties rendered them unsuitable. She noted that the prosecution had neither challenged their places of abode nor disputed their ability to meet the financial obligations attached to the bail application.
The judge found all five sureties substantial and suitable to stand for the accused. She added that the responsibilities of ministers and MPs did not constitute full-time engagements that would prevent them from ensuring Bagonza’s attendance in court.
In granting bail, Kajuga ordered Bagonza to deposit his passport with the court registry and barred him from travelling outside the court’s jurisdiction without permission.
He was also directed to deposit certificates of title for land in Hoima belonging to him and property belonging to his sister, registered in the name of Elizabeth Namutebi, as additional security. The court further ordered him to attend proceedings on the same dates he is required to report to the Magistrates Court of the Anti-Corruption Division.
In assessing Bagonza’s personal circumstances, the court noted that he had a fixed residence in Mpala Cell, Katabi, and owned land in Hoima City. Kajuga also observed that there was no evidence that Bagonza had previously been granted bail and subsequently breached its conditions or absconded.
The court further found no evidence of other criminal charges pending against him. Although the judge acknowledged the seriousness of the charges, she held that the nature of the allegations alone did not require Bagonza to demonstrate exceptional circumstances to qualify for bail.
The money laundering offence carries a maximum sentence of 15 years’ imprisonment upon conviction, while abuse of office attracts a possible sentence of up to seven years’ imprisonment and a fine.
The court also considered that Bagonza had not yet been committed to the High Court for trial, investigations were still ongoing and no trial date had been set.
Bagonza was first arraigned before Grade One Magistrate Christopher Opit on September 17, 2026, and charged with abuse of office and money laundering.
According to the prosecution, Bagonza allegedly abused his authority in January 2024, while serving as Head of the PACEID Secretariat under the Office of the President, by irregularly registering and incorporating the Presidential Initiative on Export and Industrial Development as a private limited liability company.
The prosecution alleges that the company had objectives similar to those of his employer and that its incorporation was prejudicial to the interests of the Government of Uganda.
On the money laundering charge, the prosecution alleges that Bagonza and other individuals who are still at large transferred Shs171.7 million between September 1, 2023, and August 30, 2026, from an account held in the name of the Office of the President-Presidential Initiative on Export and Industrial Development to a personal account in Bagonza’s name at Housing Finance Bank’s Kololo branch.
The state further alleges that the transfers were intended to conceal or disguise the illicit origin of the funds, which Bagonza allegedly knew or had reason to believe were proceeds of crime.
The case comes amid controversy over the mandate and operations of PACEID, an initiative associated with businessman Odrek Rwabwogo. In August 2026, Chief of Defence Forces General Muhoozi Kainerugaba questioned the initiative’s legality in statements published on his X account, alleging that it was illegally obtaining government funds.
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