Parliament summons Basajjabalaba over Shs140bn BoU guarantee

Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has resolved to summon businessman Hassan Basajjabalaba to appear in person after he failed to attend Wednesday’s proceedings on a disputed Shs140 billion Bank of Uganda guarantee.

The decision, reached after a lengthy debate over a request by Basajjabalaba’s lawyers for more time, escalates parliamentary scrutiny of a financial arrangement dating back to 2017.

The committee, chaired by Muwada Nkunyingi, is examining the roles played by Basajjabalaba’s Haba Group, Bank of Uganda and other parties in the transaction, particularly the recovery of the Shs140 billion guaranteed by the central bank.

Basajjabalaba was expected to appear before the committee and answer questions about the guarantee and efforts to recover the money.

Instead, Calvin Ojambo of Magna Advocates, who represents Basajjabalaba, asked the committee to grant his client more time to prepare before appearing.

The request triggered a lengthy debate among committee members, who ultimately resolved that Basajjabalaba should appear in person.

The committee is investigating how the guarantee was issued, the circumstances surrounding the transaction and the efforts made by Bank of Uganda and other responsible parties to recover the money.

The matter dates back to 2017 and has previously attracted scrutiny over the circumstances under which the central bank became involved in the financial arrangement.

COSASE is expected to continue questioning the parties involved as it seeks to establish how the Shs140 billion exposure arose and what steps have been taken to recover the money.

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