HABARI DAILY I Kampala, Uganda I Corruption allegations have reared their ugly head at the Uganda National Mining Company (UNMC), prompting the Inspectorate of Government (IGG) to order the immediate interdiction of its Chief Executive Officer, Dr Gerald Banaga-Baingi, and Chief Corporate and Legal Affairs Officer, Lelia K. Bwambale, to allow investigations into alleged corruption, maladministration, financial mismanagement and abuse of office.
In a directive issued on Thursday, October 22, 2026, the Inspectorate said the suspension of the two senior officials from exercising their powers and functions was necessary to protect the integrity of the investigations and prevent possible interference.
The IGG also instructed the company’s board chairperson to establish temporary management arrangements to ensure that the responsibilities of the two officials continue to be performed without interruption as investigators examine the allegations.
Although the Inspectorate has not disclosed the specific transactions or actions under investigation, the directive signals increased scrutiny of the state-owned mining company’s management at a time when it is facing wider governance challenges.
The Inspectorate said the action was intended to ensure that investigations proceed without obstruction while safeguarding public interest.
“Public interest demands that while investigations against an officer are ongoing, he or she should be suspended from exercising the powers and functions of the office to avoid interference with the investigations,” the statement reads.
The Inspectorate did not indicate how long the investigations would take or whether further officials could be implicated.
IGG invokes constitutional powers
The Inspectorate based its directive on Article 230(2) of the 1995 Constitution and Section 13(6) of the Inspectorate of Government Act, Cap 32.
The provisions empower the Inspector General of Government to issue orders and directions considered necessary in the execution of the office’s duties.
“The Inspector General of Government may, during the course of his or her duties or as a consequence of his or her findings, make such orders and give such directions as are necessary and appropriate in the circumstances,” the statement reads.
The interdiction is an administrative measure intended to facilitate the investigations and does not, in itself, establish that either official committed wrongdoing.
The board chairperson is expected to put interim arrangements in place to maintain the company’s operations while the inquiry proceeds.
The directive comes amid broader concerns about governance at UNMC, including disagreements at board level over budget approvals, questions about inadequate capitalisation and a governance audit ordered by the Ministry of Finance.
Leadership changes add to scrutiny
UNMC has also experienced changes in its board leadership in recent months.
Chairperson James Mukasa Ssebugenyi resigned, while his deputy, James Byagaba, also left the position. Former Finance Minister Maria Kiwanuka subsequently took over as acting board chairperson.
The leadership changes, coupled with the governance concerns and the latest interdictions, place the company’s management under increased scrutiny as the government seeks to strengthen accountability in the mining sector.
UNMC has also disputed its inclusion on a list of defaulters over Shs46.5 million in mineral rent. The Ministry of Energy and Mineral Development later acknowledged that the listing was erroneous.
Although the mineral-rent matter is separate from the allegations being investigated by the Inspectorate, it illustrates some of the administrative challenges that have confronted the company.
The IGG has not established publicly whether the current investigations are connected to the board-level disagreements, the capitalisation concerns or any other specific administrative matter.
Mining company holds strategic national interests
Established in April 2024 under the Mining and Minerals Act, 2022, UNMC was created to manage the government’s commercial interests in the mining industry and ensure that the country benefits from its mineral resources.
The company manages the government’s participation in qualifying mining projects, including a statutory 15 per cent free-carried interest in medium- and large-scale mining licences. The government can also acquire additional equity through paid participation.
Beyond managing government stakes, UNMC is mandated to engage directly in commercial mining through joint ventures, mineral production-sharing agreements and other local and international investments.
Its portfolio includes government participation in Kilembe Mines, which contains copper and cobalt deposits; the Wagagai Gold Project; the Makuutu Rare Earth Project; the Sukulu Phosphate and Steel Project; and the Moroto clinker and cement production project.
The company is also expected to support value addition through infrastructure across the mineral value chain, including mineral trading, beneficiation and buying centres to encourage local processing of Uganda’s priority minerals.
These responsibilities make effective governance at UNMC important to the management of public commercial interests and the government’s ambitions to increase revenue from mining.
Investigations expected to determine next steps
The immediate interdiction of Banaga-Baingi and Bwambale is intended to ensure that investigators can examine the allegations without possible interference from the officials under scrutiny.
The Inspectorate has not provided further details about the alleged misconduct or announced a timetable for completing the investigations.
The board must meanwhile ensure that the company’s operations continue as the inquiry proceeds.
The outcome could have implications for UNMC’s leadership and governance arrangements, but any conclusions about the officials’ conduct will depend on the findings of the investigations.
For now, the Inspectorate says its priority is to protect the integrity of the process, safeguard public interest and ensure that the state-owned company continues performing its statutory functions while the allegations are examined.
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