news 28 August 2026 Daily Monitor (Uganda)
COSASE Demands Evidence for Microfinance Support Centre's Audit Responses
Parliament's Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has rejected the explanations provided by Microfinance Support Centre (MSC) officials regarding audit queries, citing a lack of supporting evidence. The committee is demanding documentary proof for actions taken by the MSC in response to concerns raised by the Auditor General. Source: https://www.monitor.co.ug/uganda/news/national/cosase-rejects-microfinance-support-centre-responses-over-lack-of-evidence-5575028
Officials from the Microfinance Support Centre Limited (MSC) faced scrutiny from the Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) this week, as their responses to queries from the Auditor General’s 2025 report were deemed insufficient. The committee, chaired by Muwada Nkunyingi, rejected the verbal explanations and demanded substantive evidence to back up the claims made by the MSC.
Led by Accounting Officer Edward Sengonzi Damulira and Ministry of Finance Under Secretary John Peter Mujuni, the MSC delegation had previously missed a summons, leading COSASE to issue arrest warrants. They appeared before the committee to address a range of issues, including the write-off of Shs63.57 billion in loans, an expansion of loans totaling Shs48.61 billion, and investment financing receivables of Shs14.96 billion. These transactions reportedly contributed to a loss of Shs22.67 billion for the entity in the year ending June 2025.
Further concerns highlighted by the audit include the delayed processing of 17 loans, valued at Shs7.78 billion, which exceeded the 31-working-day limit stipulated in the MSC’s Credit and Procedure Manual. Some loan applications reportedly took over a year to process, raising risks for both clients and the institution. The committee also questioned the use of outdated collateral valuations for loans amounting to Shs6.52 billion, with some securities valued as far back as nine years ago.
Additionally, the audit pointed out the low utilization of conventional funds meant for on-lending, with only Shs23.42 billion disbursed out of a planned Shs44.7 billion by June 30, 2025.
COSASE has adjourned the meeting and instructed the MSC officials to return with comprehensive, evidence-backed responses to allow for a thorough interrogation of the audit findings. The committee emphasized the need for documentary proof over mere verbal assurances. The source for this article is the Daily Monitor.