KICKBACK SCANDAL! Old Mutual, Uganda Airlines Bosses Cited in Secret Shs107bn Unit Trust Investment Deal

A Shs107bn investment transaction involving Uganda Airlines and Old Mutual Investments Uganda has come under scrutiny following allegations that a $100,000 (about Shs370m) kickback was sought to facilitate the deal, Red Pepper has exclusively learnt.

The allegations have placed two executives—Z. K & J.G—of Old Mutual Investments Uganda under the spotlight over their alleged roles in the events surrounding the transfer.

The controversy centres on claims that A.J.K, an official at Uganda Airlines, allegedly demanded a payment from Old Mutual Investments Uganda in connection with the movement of the airline’s funds into an Old Mutual unit trust account.

The claims were reportedly brought to the attention of police by Jane Nalukenge, an Independent Financial Adviser who had been handling the airline’s account at Old Mutual.

According to information contained in her statement to police, Nalukenge recorded conversations in which the alleged kickback request was discussed and advised against any improper payment.

The matter was reportedly investigated by the Criminal Investigations Directorate (CID), although the outcome of that inquiry has not been established.

HOW THE DEAL UNFOLDED

Red Pepper has learnt that the events reportedly began on March 4, 2026, when Old Mutual Investments Uganda executive J.G called Nalukenge to discuss plans to move additional funds from Uganda Airlines into its investment account at Old Mutual.

Nalukenge says J.G informed her that he had been engaging A.J.K, an official at Uganda Airlines over the proposed transaction and that a $100,000 commission had allegedly been demanded as a condition for facilitating it.

As the adviser responsible for the account, Nalukenge says she was concerned about the implications of the request and urged JG to reject any arrangement that involved an improper payment.

In her statement, she said she advised him to use the airline’s established management channels and, if necessary, raise the matter with Girma Wake, who had recently taken over as Uganda Airlines chief executive.

Old Mutual Investments Uganda executive J.G reportedly acknowledged the advice and said he would consider it before responding.

The conversation lasted about 10 minutes and was recorded, according to Nalukenge.

She followed up the next morning, March 5, calling JG again to stress the need to handle the matter through proper leadership structures.

Her concerns were heightened by the fact that Uganda Airlines was already facing scrutiny over allegations of mismanagement, including inquiries involving the State House Anti-Corruption Unit.

SHS107BN TRANSFER TRIGGERS QUESTIONS

On March 6, 2026, Nalukenge says she noticed that approximately Shs107bn had been transferred from Uganda Airlines into its Old Mutual unit trust account.

But the development was followed by another surprise.

According to her account, she later logged into the agent portal and discovered that the airline’s two accounts had been removed from her agency code.

When she contacted Old Mutual Investments Uganda executive J.G for an explanation, he reportedly told her the decision had been made as a business arrangement between himself and A.J.K, an official at Uganda Airlines.

Nalukenge questioned the timing, arguing that the removal of the accounts came after she had raised concerns about the alleged kickback request.

She also warned that such a decision could undermine the position of independent financial advisers who bring clients to investment firms but refuse to participate in questionable dealings.

The account transfer and the subsequent change in account management have therefore become central to questions about how the transaction was handled and whether the appropriate procedures were followed.

FORMER AIRLINES CFO WARNED AGAINST PAYOUT

The controversy also reportedly involved S.M, the predecessor of A.J.K at Uganda Airlines.

According to the account provided, A.J.K sought S. M’s advice about the alleged demand.

An audio recording of their conversation reportedly captures S.M warning against paying a kickback, saying such an arrangement would be contrary to accepted business practice.

The recording, if authenticated and considered alongside other evidence, could help investigators establish what was discussed before the transaction was executed.

QUESTIONS OVER AIRLINE AUTHORISATION

Information from within Uganda Airlines reportedly suggests that Wake, who was only about two weeks into his tenure at the time, was unaware of the proposed transaction before it was executed.

AJK, an official at Uganda Airlines is alleged to have enlisted P.E, a member of Panel A, to sign the transfer forms.

The circumstances under which the forms were prepared, approved and processed are among the issues that would need to be established to determine whether the transaction complied with the airline’s internal controls.

After learning of the matter, Wake reportedly directed Ronald Otukol, the airline’s head of Internal Audit, to investigate and prepare a report.

Sources cited in the account claim that attempts by Otukol to interview Old Mutual Investments Uganda executive J.G initially failed because the Old Mutual executive said he was abroad on holiday.

Old Mutual Investments Uganda executive J.G later reportedly appeared at the airline, where he met Wake following arrangements involving Shakila Lamar, Uganda Airlines’ public relations manager.

It remains unclear what conclusions, if any, were reached by the airline’s internal inquiry and whether its findings were submitted to the relevant authorities.

BIG QUESTIONS REMAIN

The case raises questions about the handling of a major public-enterprise investment, the authorisation of the transfer, the alleged commission demand and the decision to remove the airline’s accounts from Nalukenge’s agency code.

It also puts the spotlight on the safeguards that should govern transactions involving public funds and investment managers.

The key issues include whether the alleged $100,000 demand can be independently substantiated, who authorised the transfer, whether all required approvals were obtained and what action was taken after the concerns were reported.

The status of the CID investigation and the outcome of the internal audit at Uganda Airlines also remain important outstanding questions.