COSASE Orders Arrest of Microfinance Support Centre Officials for Second Summons Failure

Lawmakers on the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) have issued arrest warrants for the directors and accounting officer of the Microfinance Support Centre (MSC). This decisive action follows the entity’s repeated failure to honour parliamentary summons, marking the second instance of absence.

The committee’s frustration stems from critical findings by the Auditor General concerning MSC’s financial stewardship. These findings include a reported Shs67 billion loss in Phase 2 of its operations and a staggering Shs63.57 billion in written-off, unrecovered loans. Adding to the concerns, auditors identified Shs6.5 billion in loans backed by security guarantees that had expired, some as far back as nine years ago.

The persistent absence of MSC officials has ignited anger among parliamentarians, who are questioning the entity’s overall financial management and governance. Specific areas of concern include the appointment of Executive Director John Peter Mujuni and the circumstances surrounding the authorization of multi-billion-shilling loan write-offs.

Citing their special powers under parliamentary rules, COSASE members declared the MSC leadership’s failure to attend as a direct defiance of Parliament. One member moved a motion to issue arrest warrants, emphasizing that the committee possesses powers akin to the High Court, including the authority to order the arrest and production of individuals.

Legislators confirmed that MSC was formally served with invitations on August 20, 2026, with acknowledgements received. They accused the leadership of attempting to evade scrutiny through administrative confusion. The committee stressed the mandatory nature of summons, referencing guidance from the late Speaker Jacob Oulanyah, and warned that non-compliance could be considered contempt of Parliament.

In addition to the arrest warrants, COSASE has summoned the government ministers who hold shares in MSC on behalf of the state. These include the Minister of Finance, Planning and Economic Development, the Minister for General Duties in the Office of the Prime Minister, and the Minister of State for Microfinance, who are expected to address the financial and operational issues plaguing the entity.

Source: Nile Post