Parliament Halts IRA Audit Probe Amidst Leadership Dispute, Awaiting Solicitor General's Advice

The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has temporarily halted its examination of the Auditor General’s report concerning the Insurance Regulatory Authority (IRA). This decision comes as the committee navigates a complex leadership dispute and related court challenges within the IRA.

COSASE, led by Chairperson Muwada Nkunyingi, voted to suspend proceedings until the Permanent Secretary and Secretary to the Treasury (PSST) receives official guidance from the Solicitor General. The core issue is determining the rightful Accounting Officer for the IRA amidst uncertainty over its leadership.

The probe’s suspension was prompted by revelations that the High Court had issued an injunction blocking the recruitment of a new chief executive. Furthermore, the court order restrained the IRA board from acting on its decision not to renew the contract of former CEO Ibrahim Kaddunabi, who is currently challenging his departure in court.

Lawmakers expressed concerns regarding the legality of the current Acting CEO, Dr. Sande Protazio, assuming the responsibilities of an Accounting Officer without a formal instrument designating him to the role. They emphasized that the Public Finance Management Act requires a designated individual to bear personal and legal liability for an institution’s finances.

Concerns were also raised about internal conflicts at the IRA, which MPs noted created an unstable environment for the committee’s work. An IRA official confirmed that the PSST had indeed sought legal advice from the Solicitor General to clarify the matter. The representative also noted that Kaddunabi had not been separately appointed as Accounting Officer during his tenure, as the substantive chief executive typically assumes this role automatically.

Despite some calls to continue the audit, the committee ultimately decided to await the Solicitor General’s formal interpretation. This suspension means that the scrutiny of significant financial matters, including a Shs33.5 billion construction project facing quality issues and Shs3.9 billion in unutilized software maintenance subscriptions, is on hold.

The committee is expected to resume its investigation into the IRA once the Solicitor General’s guidance on the designation of the Accounting Officer is received. This clarification is crucial for the committee to proceed with its oversight responsibilities effectively.

Source: Nile Post