Igara County MP Michael Mawanda has been formally arrested by the Criminal Investigations Department (CID) in connection with the alleged mismanagement of war loss compensation funds, marking a significant development in the ongoing financial misconduct investigation.
Igara County MP Michael Mawanda found himself under formal arrest on Wednesday evening after a day-long interrogation by CID detectives at their Kibuli headquarters.
Mawanda’s arrest follows allegations of his involvement in the financial mismanagement of compensation funds meant for cooperatives affected by Uganda’s past civil wars.
Mawanda, alongside his Elgon County counterpart Nyasio Mudimi Wamakuyu, had been summoned for questioning regarding the controversial handling of funds intended for the West Mengo Growers Cooperative Society.
The cooperative had engaged JM Musisi and Co. Advocates to claim over Shs 14 billion from the Ministry of Trade.
However, Mawanda, who was not a shareholder, advised the cooperative to instead utilize the services of M/S Justin Mungoma and Co. Advocates, through which Shs 2 billion was subsequently released.
The unfolding scandal took a dramatic turn at around 6:30 PM when Mawanda, in handcuffs and escorted by heavily-armed counter-terrorism personnel, was transported in a police van to Nateete Police Station, where he is expected to spend the night.
This high-profile arrest underscores the gravity of the allegations against him.Muusa Bagala, the accountant for the West Mengo Growers Cooperative Society, provided crucial testimony to a parliamentary committee chaired by Mwine Mpaka.
Bagala detailed how, upon learning of the Shs 2 billion disbursement, he approached Mawanda at his parliamentary office.
“When we asked Hon Mawanda about the compensation of Shs 2 billion, he suggested a Shs 50 million token to the SACCO’s leaders,” Bagala recounted,
Adding that this token amount was received from the lawyers of M/S Justin Mungoma and Co. Advocates at KCB Bank in Kampala.Interestingly, while the Ministry of Trade released Shs 2 billion, only Shs 50 million reached the intended beneficiaries, raising serious concerns about the handling of the remaining funds.
This discrepancy has led to heightened scrutiny and demands for accountability.Speaking on the matter, CID spokesperson Charles Twine confirmed Mawanda’s arrest, stating,
“This arrest is part of our broader investigation into the mismanagement of compensation funds. We are committed to ensuring that justice is served and that all those involved are held accountable.”
Mawanda’s legal team has yet to release a statement, but the case has already sparked significant public and political interest.
Political analyst Dr. Sarah Kizito commented,
“This arrest is a pivotal moment in the fight against corruption within Uganda’s political and financial systems. It sends a clear message that no one is above the law.”
The investigation continues as authorities seek to unravel the complexities of the financial mismanagement case and ensure that the rightful beneficiaries receive their due compensation. Mawanda's arrest marks a significant step in the quest for justice and transparency in Uganda’s compensation schemes.
