IRA leadership dispute halts parliamentary probe into finances

Uganda's Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has halted its examination of the Insurance Regulatory Authority (IRA) following a leadership dispute that prevented MPs from delving into substantive audit queries. The committee had summoned IRA officials to address findings from the Auditor General's report for the 2024/2025 financial year and issues surrounding the authority's management after the contract of its long-serving Chief Executive Officer, Alhaj Ibrahim Kaddunabbi Lubega, expired.

The Auditor General's report highlighted a substantial increase in Kaddunabbi's gross monthly salary, rising from 46.344 million Shillings in 2021/2022 to 57.733 million Shillings in 2024/2025 and projected to reach 60.850 million Shillings in 2025/2026. While the salary hikes were reportedly included in IRA budgets approved by the Board, the report noted a lack of evidence that the Board specifically considered and recommended these increments to the Minister, as required by ministerial guidance.

Further irregularities included 36.832 million Shillings paid as an irregular leave allowance and 87.179 million Shillings as compensation for untaken leave. The Auditor General found this compensation inconsistent with the Employment Act and Kaddunabbi's contract, as there was no proof his leave was denied or his employment terminated. Additionally, IRA allegedly paid Kaddunabbi full per diem for several Africa Reinsurance Corporation engagements, even when these activities were sponsored. Under IRA's Human Capital Manual, he should have received only 30 percent of the normal per diem in such cases, resulting in an estimated loss of 57.4 million Shillings.

Broader governance concerns also emerged, including the recruitment of 39 individuals against 30 approved positions, with six hires lacking documented Board approval, incurring estimated salary and benefit costs of 647.6 million Shillings. Weaknesses in monitoring and controlling security deposits held by insurance companies, which serve as a regulatory safeguard, were also noted. The hearing was ultimately dominated by the unresolved dispute over who lawfully leads the IRA and is accountable to Parliament, overshadowing the audit findings.