By Ben Musanje
The Inspectorate of Government (IG) has ordered the immediate interdiction of Uganda National Mining Company (UNMC) Chief Executive Officer Dr. Gerald Banaga-Baingi and Chief Corporate and Legal Affairs Officer Ms. Leila K. Bwambale to facilitate investigations into allegations of maladministration, financial mismanagement and abuse of office.
In a directive issued on Thursday, October 22, 2026, the Inspectorate instructed the chairperson of the UNMC Board of Directors to immediately interdict the two senior officials and institute interim administrative arrangements to ensure the uninterrupted discharge of their functions during the period of interdiction.
The move places the leadership of the state-owned mining company under heightened scrutiny as investigators examine allegations involving two of its senior officers. However, the Inspectorate has not publicly disclosed the specific acts of alleged misconduct or indicated how long the investigations are expected to take.
The IG said the interdictions were necessary to safeguard the integrity of the investigations and prevent possible interference with the process by officials whose conduct is under investigation.
“Public interest demands that while investigations against an officer are going, he or she should be suspended from exercising the powers and function of the office to avoid interference with the investigations,” the Inspectorate stated.
The directive is grounded in Article 230(2) of the 1995 Constitution of the Republic of Uganda and Section 13(6) of the Inspectorate of Government Act, Cap 32, which empower the Inspector General of Government to issue orders and directions considered necessary and appropriate in the course of executing the office’s duties.
The constitutional provision and the law state that the Inspector General of Government may, during the course of his or her duties or as a consequence of the findings, make such orders and give such directions as are necessary and appropriate in the circumstances.
The interdiction of Dr. Banaga-Baingi and Ms. Bwambale means they are to be suspended from exercising their respective official powers and functions while the investigations proceed. The directive does not, in itself, establish that either official is guilty of the allegations under investigation.
Dr. Banaga-Baingi assumed the position of UNMC chief executive officer effective May 1, 2025. His interdiction comes at a time when the company is facing broader questions concerning governance, funding and the administration of its strategic responsibilities in Uganda’s mining industry.
Governance Questions Mount at State-Owned Mining Company
The Inspectorate’s intervention comes against the backdrop of reported governance challenges at UNMC, including disagreements at board level over budget approvals, concerns about inadequate capitalisation and a governance audit ordered by the Ministry of Finance.
The company has also experienced changes in board leadership. Former board chairperson James Mukasa Ssebugenyi resigned, while his deputy, James Byagaba, left the position. Former Finance Minister Maria Kiwanuka subsequently took over as acting board chairperson.
The changes in leadership have added to the scrutiny surrounding the institution responsible for managing the government’s commercial interests in the mining sector.
UNMC has also recently 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 dispute was subsequently attributed to an error, the episode forms part of the wider administrative context in which the company is operating as the Inspectorate pursues the allegations against its senior officials.
The latest directive places responsibility on the board chairperson to establish interim administrative arrangements that will allow the company to continue operating without disruption while the investigations are conducted.
The Inspectorate has not provided further details of the allegations against the CEO and the chief corporate and legal affairs officer, and no findings of guilt have been announced in connection with the directive.
UNMC’s Strategic Role in Uganda’s Mineral Wealth
Established in April 2024 under the Mining and Minerals Act, 2022, Uganda National Mining Company is a state-owned company mandated to manage the government’s commercial interests in the mining industry and maximise the country’s participation in mineral development.
Under Uganda’s mining framework, the company manages government interests in qualifying mining projects, including the statutory 15 per cent free-carried interest in medium- and large-scale mining licences. The government also has the option of acquiring additional equity through paid participation.
Beyond managing government stakes, UNMC is mandated to participate directly in commercial mining through joint ventures, mineral production-sharing agreements and other investments locally and internationally.
The company is also expected to support value addition by developing infrastructure across the mineral value chain, including mineral trading, beneficiation and buying centres aimed at encouraging local processing of Uganda’s priority minerals.
Its portfolio includes government participation in several strategic projects, among them Kilembe Mines, known for its 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.
Given this mandate, the company’s governance and administrative stability are central to the management of the government’s commercial interests in the mining industry.
The interdiction of its chief executive and chief corporate and legal affairs officer therefore presents an immediate leadership challenge, with the board expected to maintain continuity of operations as the investigations proceed.
The central question now is what the Inspectorate’s investigations will establish regarding the allegations of maladministration, financial mismanagement and abuse of office, and whether any further administrative or legal action will follow.
For now, the Inspectorate has directed the immediate interdiction of the two officials, leaving the company to operate under interim administrative arrangements while the investigation process continues. The latest events vindicate Sr Counsel James Sebugenyi who until recently was board chair who, upon acrimonious departure, was replaced by former Minister Maria Kiwanuka who now has to implement the IGG directive against the company CEO/MD. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
