Musasizi Seeks Extension for Shs140bn HABA Group Letter of Comfort Explanation

Finance Minister Henry Musasizi has formally requested an extension from the Parliament’s Committee on Public Accounts (COSASE) to provide a comprehensive explanation about a Shs140 billion letter of comfort issued to HABA Group. The directive to the Bank of Uganda for this letter dates back to 2017.

In a letter addressed to the committee, Musasizi apologized for his inability to attend a previously scheduled meeting on October 1, 2026. He noted that ministerial appearances before accountability committees are typically reserved for matters directly concerning them personally.

The meeting was intended to review the Auditor General’s report concerning the Bank of Uganda for the financial year ending December 31, 2025, with a specific focus on the HABA Group transaction.

Musasizi explained that the issues under scrutiny stem from events originating as far back as June 2010. He emphasized the considerable time and effort required to locate, retrieve, and compile the necessary historical documents to address the queries adequately.

Furthermore, the minister highlighted that many key individuals with direct institutional knowledge of these past transactions have since left their respective positions. This necessitates extensive consultation with various offices and former officials to reconstruct the events accurately.

To facilitate a thorough response, Musasizi has assigned technical officers within the Ministry of Finance to gather all pertinent information. He has requested COSASE to reschedule the meeting to allow for this detailed preparation and consultation, ensuring that the committee receives a well-informed account of what transpired.

A letter of comfort, while not a direct guarantee, serves as an assurance to provide financial or institutional support. COSASE’s current inquiry aims to understand the rationale behind the Bank of Uganda’s instruction to issue the Shs140 billion letter, the authorization process, and any potential financial obligations incurred by the government or the central bank. The committee is expected to set a new date for discussions with the Ministry of Finance’s technical team.

Source: Nile Post