The chief executive of the Uganda National Mining Company (UNMC), Dr Gerald Banaga-Baingi, is facing allegations of defying an order by the Inspectorate of Government to step aside while investigations are conducted into alleged maladministration, financial mismanagement and abuse of office at the state-owned company.
The Inspectorate on October 22 ordered Banaga-Baingi and the company’s chief corporate and legal affairs officer and company secretary, Lelia K. Bwambale, to be interdicted to allow investigators to examine the allegations against them.
The directive also required the board chairperson to make interim arrangements to ensure the company continues operating during the investigations. Officials under investigation were expected to stop exercising their powers to protect the integrity of the process.
However, sources at UNMC allege that Banaga-Baingi continued reporting to work and issuing instructions to staff despite the directive. He reportedly returned to the company’s offices on the evening of October 22 and again on October 23.
His continued presence has raised concerns among individuals familiar with the dispute, who allege that he could interfere with company records or attempt to delete or conceal information relevant to the investigations.
The allegations have also raised questions about whether the Inspectorate’s directive is being enforced and whether procurement, recruitment and financial records are adequately protected.
Journalist Andrew Mwenda has publicly questioned why the chief executive was reportedly still at work after the Inspectorate issued its order.
In a post on X, Mwenda described the alleged defiance as an attempt to obstruct the investigation.
“His continued presence in office is obvious defiance of the IGG. It must therefore be aimed at covering up evidence,” Mwenda wrote.
Mwenda, who also speaks for the Patriotic League of Uganda (PLU), said he had discussed the matter with the group’s chairman, Gen Muhoozi Kainerugaba, the Chief of Defence Forces, who he said supported the Inspectorate’s decision.
“Mr Banaga-Baingi’s defiance of the IGG cannot be tolerated. He is advised to leave office immediately or face the full force of the state to evict him forcefully by police or UPDF,” Mwenda added.
His comments have intensified scrutiny of the company’s leadership and the implementation of the interdiction order.
Eng Irene Pauline Bateebe, the Permanent Secretary at the Ministry of Energy and Mineral Development, was contacted for comment on the allegations and the ministry’s response.
The ministry’s position on enforcing the directive, the status of a governance audit ordered at UNMC and the measures being taken to safeguard company records remain important questions as the investigations proceed.
[Add Eng Bateebe’s response if received, alongside responses from Banaga-Baingi and Bwambale. If they do not respond, state that they could not be reached for comment.]
Recruitment allegations put UNMC management under scrutiny
The investigation follows months of complaints about recruitment irregularities, alleged nepotism, financial mismanagement and obstruction of oversight at UNMC.
The concerns have emerged amid wider scrutiny of recruitment practices in public institutions, following Parliament’s validation exercise to establish whether its employees were recruited through proper procedures and possess the required qualifications.
At UNMC, complaints allege that some employees were recruited without the necessary qualifications, while personal connections, favouritism and tribal considerations were prioritised over professional competence and merit.
One of the concerns is an allegation that children of at least two board directors were placed on the company’s payroll before the positions they occupy were formally advertised. The claims have raised questions about possible nepotism and conflicts of interest in the recruitment process.
The dispute has also exposed tensions between the board and executive management over access to recruitment, procurement and other corporate records.
Banaga-Baingi is accused of resisting the board’s requests for information about staffing decisions and procurement transactions. Bwambale is, in turn, accused of supporting his refusal instead of advising him to comply with the board’s oversight requirements.
Access to such records is essential for the board to scrutinise executive decisions, expenditure and compliance with corporate governance procedures.
The standoff reportedly prompted Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, to order a governance or forensic audit of the company’s operations.
Questions subsequently arose over Banaga-Baingi’s decision to assign Bwambale responsibility for the audit’s logistics, planning and coordination, despite the company having a senior administration officer and a chief financial officer.
The appointment attracted scrutiny because Bwambale was among the officials accused of withholding information requested by the board in connection with the dispute.
Auditor General’s findings raise procurement concerns
Beyond the recruitment dispute, Banaga-Baingi faces allegations concerning procurement practices, financial controls and the management of the company.
Findings attributed to the Auditor General indicate that UNMC spent Shs76.2 million on air tickets, catering and other goods and services without the required procurement files. Other concerns relate to expenditure allegedly incurred without sufficient documentation or the necessary board approval.
The company also reportedly fell short of its procurement targets, completing procurement worth Shs921 million, representing 32.2% of its planned procurement by value, against a target of Shs2.86 billion.
Additional concerns relate to contracts allegedly awarded without formally appointed contract managers or contract management plans, raising questions about the adequacy of procurement oversight.
Banaga-Baingi is also accused of favouring companies linked to friends and preferred associates when awarding contracts. These allegations raise questions about whether procurement decisions complied with the principles of the Public Procurement and Disposal of Public Assets Act.
The allegations have not, by themselves, established that any particular contract was unlawfully awarded.
Employee’s expanded responsibilities raise questions
Another area of concern involves a female employee whose appointment to a senior position and responsibilities beyond her formal job description have reportedly attracted scrutiny.
The employee is said to have a personal relationship with the chief executive, although this claim requires independent verification. Her reported responsibilities span procurement, engineering, budget allocation, investments and administration.
She is also accused of influencing contracts committee decisions in favour of bidders preferred by Banaga-Baingi.
These claims raise questions about potential conflicts of interest, the separation of responsibilities and the concentration of decision-making authority within the company. They remain allegations requiring investigation.
What is at stake for Uganda’s mining company?
UNMC manages the government’s commercial interests in Uganda’s mining sector, making accountability, proper financial management and transparent procurement central to its operations.
The Inspectorate’s investigation now places the company’s leadership, recruitment procedures, procurement decisions and internal oversight under renewed scrutiny.
The outcome will depend on the evidence gathered by investigators and the responses of the officials concerned. It will also test the effectiveness of the board’s oversight role and the government’s ability to protect public resources while ensuring that the company continues operating during the investigation.
