July 29, 2013

IGG Orders Arrest of UDB Officials for Victimizing Whistle-blower

Three top officials of Uganda Development bank have been arrested on the orders of Irene Mulyagonja, the Inspector General of Government for allegedly victimizing a whistle-blower.  

They are Patricia Ojangole, the chief executive Officer Uganda Development Bank, Andrew Mulubya and Daniel Kaggwa, both directors.

IGG Irene Mulyagonja ordered the arrest of the officials
IGG Irene Mulyagonja ordered the arrest of the officials

The officials were picked up on Monday and taken to Kampala Central police station waiting to appear before Buganda Road Court. They are accused of victimizing Charlotte Mucunguzi after she raised a red flag on the improper handling of a 28 billion shillings loan request from to Savannah Commodities Limited.

In a statement issued on Monday,  the IGG notes that the three, convened an extra-ordinary executive committee meeting on 24th January this year from where they resolved to dismiss Mucunguzi for reveling the flawed manner, the loan application was being handled.

Harassing of whistleblowers is a criminal offence contrary to sections 16 and 9 of the whistleblowers act of Uganda. Earlier this year, police halted the handing out of the loan to Savannah Commodities saying it exceeds the maximum amount of 6 billion shillings the bank can loan out.

Savannah commodities was taking out the loan to complete a grain processing plant project at a yet to be known location. Uganda Development Bank is a government owned bank that was established in 1972 and has until recently been financing projects under the national development plan.

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