MPs on the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) have summoned businessman Hassan Basajjabalaba over a Shs140.487 billion debt that his company, Haba Group, has failed to clear since 2017.
The MPs raised the matter while questioning the leadership of Bank of Uganda, led by Governor Dr Michael Atingi-Ego.
They said the Auditor General’s report for the 2024/25 financial year showed that the money, owed under a central bank guarantee, had not been recovered and that little had been done to reclaim it.
The guarantee was issued on the instruction of the Ministry of Finance to enable Haba Group to borrow from commercial banks. Bank of Uganda did not lend the money directly, but it remains liable because it guaranteed the loan.
COSASE chairperson Muwada Nkunyingi put Bank of Uganda’s head of legal affairs, Dorothy Masifa Ochola, and the governor on the spot. He wanted to know why the debt had not been pursued more aggressively.
“Since you took up this office, what have you done about this money? Is it your money, or is it money for Ugandans?” Nkunyingi asked.
Ochola told the committee that she had only joined Bank of Uganda in December 2025 and would need to consult earlier records for full details. She said the matter had not been dropped.
“We have held meetings, and the matter has been on our radar with our external lawyers to see that it is settled. Bank of Uganda has considered legal action, but the challenge is that the guarantor of the loan is government,” Ochola said.
MPs pressed further, asking who the shareholders of Haba Group were and whether due diligence had been carried out before the guarantee was issued.
“The shareholders include Basajjabalaba and members of his family,” Ochola told the committee.
Lawmakers also heard that the loan had not been secured with collateral at the time it was taken out. Nkunyingi turned to the governor directly.
“Governor, are you aware of this issue?” he asked.
“I am aware, but we need to provide the full details. We were not prepared for this particular matter today. Give us time, and we will come back with everything,” Atingi-Ego said.
The committee agreed to recall Bank of Uganda to answer the outstanding questions, with detailed documentation on how the guarantee was issued, what due diligence was done, and what recovery efforts have been made so far.
“Even if it takes us a month, we shall take it, because we have the time and we shall investigate this matter, much as you seem to fear some people,” Nkunyingi said.
COSASE also directed its clerk to invite Basajjabalaba and other Haba Group shareholders to appear before the committee this week.
