KAMPALA — Burahya County Member of Parliament Hon. Joseph Mugenyi has put Bank of Uganda officials on the spot over the controversial HABA Group matter, demanding answers about the Central Bank’s involvement in the loan arrangement and the people who owned and directed the company at the time.
Appearing before the parliamentary committee scrutinising the matter, Mugenyi questioned why Bank of Uganda would issue a letter of offer that enabled an individual or company to obtain financing from a commercial bank, yet the borrower could later fail to repay the loan.
“Now this somebody fails to pay. Do you guarantee people who fail to pay? Where are you vulnerable?” Mugenyi asked.
He then narrowed his interrogation to the HABA Group case, questioning why Bank of Uganda became involved in helping the group access financing through a commercial bank and seeking clarity on the identities of those behind the company.
“I wanted to know, Bank of Uganda, why do you involve yourself in that? Who are the directors? Who are the owners of that company?” Mugenyi asked.
The questions put the spotlight on the governance and ownership of HABA Group, particularly the individuals who were responsible for the company when the transaction in question was undertaken.
In response, Bank of Uganda officials described the matter as a legacy case, explaining that they could not establish the company’s current directors because its ownership or leadership may have changed over time.
The official told the committee that, at the time, the company was believed to have been associated with members of the Barasa Vala Bar family, while cautioning that the current directors could be different.
Mugenyi’s interrogation therefore shifted attention beyond the outstanding financial obligation to a bigger accountability question: who exactly stood behind HABA Group when the controversial transaction took place, and why did Bank of Uganda involve itself in facilitating the financing?
His questions are likely to keep the spotlight on the Central Bank’s role in the HABA Group matter as Parliament continues examining the circumstances surrounding the long-running case.
