Court Orders Bishop Kabushenga to Refund Shs 405 Million in Unaccounted Donor Funds

The High Court’s Commercial Division has ordered Bishop Dr. Hamlet Kabushenga Mbabazi to refund more than Shs 405 million in donor funds. The money was meant for projects under the Child to Family Community Development Organisation (CHIFCOD) but was left unaccounted for.

Presiding over the case, Justice Anna Bitature Mugenyi also ordered the bishop to pay a 10 per cent interest rate per annum starting from January 12, 2022, until the full amount is settled. Kabushenga was additionally directed to cover the legal costs of the lawsuit.

In her ruling, Justice Bitature confirmed Honest Wilkins Natukwasa and Eleanor Nyamishana as the rightful directors of CHIFCOD, noting that Kabushenga had resigned from his position back in April 2020. However, the court ruled that all three individuals remain members of the organisation.

Kabushenga, who formerly served as a Member of Parliament for Kinkiizi East and as a bishop in the Free Methodist Church, established CHIFCOD in 2016. The organisation oversees several educational institutions, including Great Lakes Regional College Kanungu, Great Lakes High School, and various primary schools.

The legal battle began following complaints from international and local funders, such as the Protestant Church of Eppingen in Germany, Kirima Limited, and the Uganda Development Initiative. Donors reported that construction projects, including school halls and laboratories, were left incomplete despite funds being disbursed.

Further accusations detailed that Kabushenga mortgaged university property to secure a loan for personal projects in Kampala and Wakiso. Legal representation for the plaintiffs, MMAKS Advocates, successfully argued for the refund and the protection of organisational assets.

Kabushenga’s legal team, led by Patrick Alunga Alvarez, had contested the claims, arguing that donors lacked the legal standing to demand accountability and accused the current directors of forging documents. Despite these defenses, the court ruled in favor of transparency and accountability for community development funds.

For more details on this ruling, read the full report on The Observer.