Uganda's National Mining Company is embroiled in a governance crisis involving accusations of irregular recruitment, nepotism, financial mismanagement and obstruction of board oversight. Parliament is currently validating whether employees at public institutions were hired through proper procedures and hold required qualifications, bringing renewed attention to recruitment practices across the sector. At UNMC, complaints centre on appointments of unqualified staff and the influence of personal connections and tribal considerations over merit. Most significantly, children of at least two board directors were placed on the company payroll before relevant positions were formally advertised, raising questions about nepotism and conflicts of interest.
The dispute has pitted the company's board against Chief Executive Officer Dr Gerald Banaga-Baingi over access to recruitment and procurement records. The CEO is accused of resisting board requests for information on staffing decisions and procurement transactions, while company secretary Lelia K. Bwambale is accused of supporting this refusal rather than advising compliance with board oversight requirements. The Finance Ministry's Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, ordered a governance or forensic audit into the company's operations. However, Banaga-Baingi assigned the company secretary to oversee the audit's planning and coordination, despite UNMC having a senior administration officer and chief financial officer, attracting scrutiny given the secretary's involvement in withholding information.
On October 22, the Inspectorate of Government ordered the interdiction of both Banaga-Baingi and Bwambale to facilitate investigations into maladministration, financial mismanagement and abuse of office. The Inspectorate directed the board chairperson to make interim arrangements for operational continuity. Despite this directive, reports indicate Banaga-Baingi continued reporting to the office on October 22 and 23, issuing instructions to staff and raising concerns about enforcement of the interdiction and security of company records. Journalist Andrew Mwenda raised similar concerns publicly, stating that Banaga-Baingi's continued presence represented defiance and was aimed at covering up evidence.
Beyond recruitment, the CEO faces additional accusations relating to procurement and financial controls. Findings attributed to the Auditor General indicate UNMC made payments totalling Shs76.2 million for air tickets, catering and services without requisite supporting procurement files. The company executed only 32.2 percent of its planned procurement by value, with completed contracts worth Shs921 million against planned spending of Shs2.86 billion. Contracts were awarded without formally appointed contract managers or management plans, exposing procurement oversight weaknesses. Further accusations allege the CEO favoured companies associated with friends when awarding contracts, and that a female employee with a personal relationship to the CEO was appointed to a senior position with responsibilities spanning procurement, engineering, budget allocation and administration, influencing contracts committee decisions.
The governance crisis at UNMC, which manages Uganda's commercial interests in the mining sector, raises questions about accountability, protection of public resources and effective board oversight at a critical time for the sector's development.