BOU yet to recover sh140.487b from Basajjabalaba company
Commenting on the matter, Dorothy Masifa Ochola, BOU’s head of legal, said the case dates back nine years. She added that the central bank, through its external lawyers, MMAKS Advocates, is engaged in talks with HABA Group to resolve the matter.
Businessman Hassan Basajjabalaba
KAMPALA - Bank of Uganda (BOU) is seeking to recover sh140.487b from HABA Group of Companies, which is reportedly owned by businessman Hassan Basajjabalaba.
The revelation surfaced on Monday (September 14) during an engagement between Members of Parliament on the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), chaired by Muwadda Nkunyingi (Kyadondo East, NUP), and BOU officials led by Governor Dr Michael Atingi-Ego.
At the time, the two parties were scrutinising Auditor General (AG) Edward Akol’s report on the entity for the 2024/25 Financial Year (FY).
Julius Nakiyi Muntu (Budadiri East, NRM), who was the committee’s lead counsel at the time, explained that the amount arose after Government, through BOU, guaranteed HABA a loan from a commercial bank.
He added that although the commercial bank subsequently recovered the amount from BOU, Basajjabalaba is yet to fulfil his obligation to the central bank.
“Now Bank of Uganda is supposed to recover from Basajjabalaba, and the amount hasn’t been recovered all these years,” Nakiyi explained.
Commenting on the matter, Dorothy Masifa Ochola, BOU’s head of legal, said the case dates back nine years. She added that the central bank, through its external lawyers, MMAKS Advocates, is engaged in talks with HABA Group to resolve the matter.
Ochola initially referred to HABA Group as “this respective company” before she was placed on oath, after which she loosened a bit.
“The reason we wrote to the Ministry of Finance and why we are engaging with the Ministry of Finance is that the guarantee was provided to the company, on behalf of the Government on instructions from the Ministry of Finance,” Ochola disclosed.
However, when she was asked whether due diligence had been done, she absolved herself on account of having joined the institution much later.
“We will need to provide that information, because it is not within my knowledge….I joined Bank of Uganda on December 1, 2025,” Ochola clarified.
She added that her predecessor, Margret Ann Kasule, was in office at the time the transaction took place in 2017.
MPs react
However, COSASE chairperson Muwadda Nkunyingi (Kyadondo East, NUP) criticised the institution for taking far too long to recover taxpayers’ money.
“You cannot say you are going to hide under that cover. It is now seven years and over sh140 billion is at stake. Is it your money or money for Ugandans?” Nkunyingi fumed.
Background
It is understood that between 2000 and 2011, the Government, through Kampala City Council (KCC), entered into lease and management arrangements with companies associated with Haba Group, including Sheila Investments, Victoria International Trading Company and First Merchant International Trading Company.
The arrangements covered Nakasero, St Balikuddembe (formerly Owino), Shauri Yako and Nakawa markets, among other properties. Court records indicate that the contracts and leases relating to the city markets were later terminated or cancelled following opposition from market vendors and other concerns over their legality and execution.
Following the termination of the contracts and leases, Haba Group and its associated companies sought compensation from the Government.
The compensation was subsequently effected through borrowings by Haba Group, backed by letters of comfort and guarantees issued by the Bank of Uganda to several commercial banks.