COSASE piles pressure on BoU over Shs140 billion Habba guarantee

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Kampala, Uganda | URN | The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has postponed its engagement with Bank of Uganda after the central bank failed to provide satisfactory explanations over a Shs140.487 billion guarantee issued to Habba Group that has remained outstanding since 2017.

The committee on Monday questioned Bank of Uganda officials over the nine-year-old financial exposure highlighted in the Auditor General’s report for the 2024/25 financial year, demanding to know why the money has not been recovered. The amount is recorded under Note 36 of Bank of Uganda’s financial statements and relates to letters of comfort issued to Habba Group to enable it to obtain financing from commercial banks.