Uganda National Mining Company Faces Deepening Crisis as Interdicted CEO Defies Orders

A profound governance crisis is unfolding at the Uganda National Mining Company (UNMC) as investigators dig into allegations of procurement irregularities, disputed recruitment processes, and administrative mismanagement. The state-owned mining enterprise has found itself under intense public scrutiny following revelations concerning executive conduct and oversight failures.

The trouble at UNMC escalated after reports emerged that Chief Executive Officer Dr. Gerald Banaga-Baingi and the company secretary, Lelia K. Bwambale, allegedly resisted board requests to review recruitment and procurement records. Concerns regarding nepotism surfaced when it was discovered that the children of at least two board directors were placed on the payroll before jobs were formally advertised. Furthermore, an audit revealed that UNMC made payments totaling Shs76.2 million for various services without requisite supporting procurement files.

In response to the mounting governance issues, the Inspectorate of Government ordered the immediate interdiction of Dr. Banaga-Baingi and Bwambale to pave the way for independent investigations. However, the situation took a dramatic turn when the interdicted CEO reportedly defied the directive by continuing to report to his office and issuing instructions to staff, sparking fears that sensitive corporate records might be compromised.

Public figures, including journalist and Patriotic League of Uganda voice Andrew Mwenda, condemned the apparent defiance, warning that a failure to vacate office could force state intervention. As the Ministry of Energy and Mineral Development and the Ministry of Finance grapple with the fallout, the scandal highlights severe vulnerabilities in the oversight of Uganda’s commercial mining interests. Read more details in the Nile Post report.