Uganda IRA COSASE Probe Adjourned: Leadership Row Halts Inquiry

• The Uganda IRA COSASE probe was adjourned due to an unresolved leadership dispute concerning the Chief Executive Officer.
• The Auditor General's report highlighted irregular salary increases for the former CEO, Alhaj Ibrahim Kaddunabbi, lacking ministerial recommendation as required.
• Audit findings also included 36.832 million Shillings in irregular leave allowance and 87.179 million Shillings in unapproved leave compensation, inconsistent with the Employment Act.
• Further irregularities involved unapproved per diem payments totaling 57.4 million Shillings and 647.6 million Shillings in salaries for unapproved recruitments.
• The former CEO, Alhaj Ibrahim Kaddunabbi, presented court orders challenging the Board's decision not to renew his contract, leading to the parliamentary inquiry's standstill.

The parliamentary committee, tasked with scrutinizing the IRA's operations and financial management, found itself unable to proceed with substantive audit queries due to an unresolved dispute over the regulator's leadership.

A parliamentary inquiry into the Uganda Insurance Regulatory Authority (IRA) by the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has been abruptly adjourned. The committee, tasked with scrutinizing the IRA's operations and financial management, found itself unable to proceed with substantive audit queries due to an unresolved dispute over the regulator's leadership. This development has cast a shadow over the ongoing COSASE inquiry into the Uganda Insurance Regulatory Authority audit findings.

Prior to the leadership impasse, the Auditor General's report highlighted several concerning financial irregularities within the IRA. Among these was a notable increase in the gross monthly salary of Alhaj Ibrahim Kaddunabbi Lubega, the former CEO. His remuneration rose from 46.344 million Shillings in the 2021/2022 financial year to 57.733 million Shillings in 2024/2025, and further to 60.850 million Shillings in 2025/2026. While these increases were included in IRA budgets approved by the Board, the audit found no evidence that the Board had specifically reviewed and recommended these increments to the Minister, a step required by ministerial guidance.

Further findings detailed irregular payments, including 36.832 million Shillings disbursed as irregular leave allowance and 87.179 million Shillings paid as compensation for untaken leave. The Auditor General determined that this compensation for untaken leave was inconsistent with the Uganda Employment Act and Kaddunabbi's contract, as there was no documentation to suggest his leave had been denied or his employment terminated. The audit also identified a quantified loss of approximately 57.4 million Shillings related to Kaddunabbi's travel as a director of the Africa Reinsurance Corporation. Despite these activities being sponsored, the IRA paid him full per diem, contrary to its Human Capital Manual which stipulated only 30 percent of the normal per diem in such circumstances. Additionally, 39 individuals were recruited against 30 approved positions, with six employees hired without specific Board approval, incurring an estimated 647.6 million Shillings in salaries and benefits.

Beyond the specific financial discrepancies, the Auditor General's report raised broader Uganda insurance sector governance concerns. These included identified weaknesses in the monitoring and control of security deposits held by insurance companies. These deposits are a critical regulatory safeguard mandated by the Insurance Act, which stipulates that insurers must maintain prescribed security deposits and restricts their usage. The audit findings underscore potential lapses in the IRA's oversight of these vital regulatory mechanisms.

The cumulative effect of these findings, from the IRA Uganda irregular salary payments to the unapproved recruitments and governance weaknesses, formed the basis for COSASE's intended interrogation of the IRA's management. The inability of the committee to proceed due to the leadership dispute means these significant issues remain unaddressed in the parliamentary forum, prolonging uncertainty regarding compliance and accountability within the regulatory body.

The central point of contention that stalled the COSASE inquiry was the ongoing IRA Uganda CEO Kaddunabbi dispute. Alhaj Ibrahim Kaddunabbi Lubega's five-year contract concluded on May 31, 2026, after approximately 16 years at the helm of the IRA. The Board subsequently decided not to recommend him for renewal and appointed Dr. Protazio Sande, the former Director of Strategy and Market Development, as acting CEO effective June 1.

However, Kaddunabbi challenged this decision in the High Court and appeared before COSASE asserting that court orders protected his position. He presented a certified administrative order dated May 29, 2026, which restrained the IRA and its Board from implementing the decision not to recommend his renewal, pending the determination of his application. He also produced an interim injunction from July 7, 2026, which halted the process of substantively filling the CEO position until the substantive proceedings were resolved. The interpretation and legal effect of these court orders became a major point of contention during the COSASE inquiry, preventing the committee from moving forward with its planned scrutiny of the Auditor General's findings and the management of the Uganda Insurance Regulatory Authority.

This development signals heightened scrutiny on governance and compliance within Uganda's regulatory bodies. Lawyers advising insurance companies or compliance officers should review internal financial controls, HR policies, and executive compensation structures to ensure strict adherence to the Insurance Act, Employment Act, and ministerial guidance, anticipating increased regulatory oversight. The ongoing leadership dispute at IRA also introduces uncertainty regarding regulatory stability and decision-making.

Source: Original reporting via independent news sources