IRA leadership dispute overshadows COSASE probe

Kampala, Uganda | URN | The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has adjourned its scrutiny of the Insurance Regulatory Authority (IRA) after a dispute over the regulator’s leadership prevented MPs from proceeding with substantive audit queries.

COSASE had summoned IRA officials to respond to findings contained in the Auditor General’s report for the financial year 2024/2025, as well as questions surrounding the management of the authority following the expiry of the contract of its long-serving Chief Executive Officer, Alhaj Ibrahim Kaddunabbi Lubega.

Among the issues flagged by the Auditor General was the increase in Kaddunabbi’s gross monthly salary from 46.344 million Shillings in the 2021/2022 financial year to 57.733 million Shillings in 2024/2025 and 60.850 million Shillings in 2025/2026.

The Auditor General found that although the salary increases were provided for in IRA budgets approved by the Board, there was no evidence that the Board had specifically considered and recommended the increments to the Minister, as required by ministerial guidance. The special investigation also identified 36.832 million Shillings paid as irregular leave allowance and 87.179 million Shillings paid as compensation for untaken leave.

According to the Auditor General, the compensation for untaken leave was inconsistent with the Employment Act and Kaddunabbi’s contract because there was no evidence that his leave had been denied or that his employment had been terminated.

Another finding concerned Kaddunabbi’s travel in his capacity as a director of the Africa Reinsurance Corporation. The investigation found that IRA paid him full per diem for several Africa Re engagements despite the activities being sponsored. Under IRA’s Human Capital Manual, he was entitled to only 30 per cent of the normal per diem in such circumstances, resulting in a quantified loss of about 57.4 million Shillings.

The investigation further established that 39 people were recruited against 30 approved positions, with six additional employees recruited without documented specific approval from the Board. The resulting salaries and benefits were estimated at 647.6 million Shillings.

The Auditor General also raised broader governance concerns, including weaknesses in the monitoring and control of security deposits held by insurance companies. The deposits are a regulatory safeguard under the Insurance Act, which requires insurers to maintain prescribed security deposits and restricts how the funds may be used.

These audit and governance concerns formed the basis of COSASE’s planned interrogation of IRA management. However, Tuesday’s hearing was instead dominated by an unresolved dispute over who has the lawful authority to lead the authority and account for its affairs before Parliament. Kaddunabbi’s five-year contract expired on May 31, 2026, after about 16 years at the helm of IRA.

The Board declined to recommend him for renewal and appointed Dr Protazio Sande, the former Director of Strategy and Market Development, as acting CEO with effect from June 1. But Kaddunabbi challenged the decision in the High Court and subsequently appeared before COSASE, insisting that court orders protected his position.

During the hearing, he presented a certified copy of an administrative order issued on May 29, 2026, restraining IRA and its Board from implementing the decision not to recommend him for renewal pending determination of his application.

He also presented a subsequent interim injunction dated July 7, 2026, which halted the process of substantively filling the CEO position pending determination of the substantive proceedings. The interpretation and effect of the court orders became a major point of contention before the committee.

IRA Director of Legal Affairs Francesca Nakaggwa Kakooza initially relied on provisions governing ex-parte interim orders, arguing that the first order could not remain in force beyond three days.

However, following questioning by MPs, she conceded that the provision she had cited specifically applied to ex-parte orders and did not apply to the order under discussion. COSASE Chairperson Muwada Nkunyingi questioned whether Sande’s appointment, which took effect on June 1, complied with the May 29 court order.

Sande, however, maintains that he was lawfully appointed as acting CEO following the expiry of Kaddunabbi’s contract.   The leadership dispute has also created uncertainty over financial accountability at the authority. Nkunyingi observed that while Kaddunabbi appeared to retain possession of IRA assets, Sande occupied the CEO’s office but lacked clear authority as the accounting officer.

The committee had expected the Secretary to the Treasury, Ramathan Ggoobi, to clarify the authority of the acting CEO and the process for appointing an accounting officer. However, Ggoobi did not appear before the committee and instead sent Bob Munene and Musa Lukwago to represent him.

The officials told MPs that Ggoobi had sought guidance from the Solicitor General on how to proceed with the appointment of a CEO as accounting officer, as well as the substantive appointment of a CEO, given that the matter is before court.

Ggoobi’s absence left the committee without the Treasury’s definitive position on who should account for IRA before Parliament. As a result, MPs were unable to proceed with the substantive audit queries for which IRA had been summoned. After deliberations, a majority of committee members voted to adjourn the hearing until the legal position surrounding IRA’s leadership and accounting authority is clarified.

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