Overview:

IRA says its leadership transition was lawful, with Dr Protazio Sande as Acting CEO, as MPs seek Treasury guidance on who heads the insurance regulator.

Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has suspended its scrutiny of the Auditor General’s report on the Insurance Regulatory Authority (IRA) after two men appeared before it on Monday, each presenting himself as the regulator’s chief executive.

The committee had convened to examine Auditor General Edward Akol’s audit of the authority for the 2024/25 financial year, but was unable to proceed once it became clear that the question of who lawfully heads the IRA is unresolved and before the courts.

Dr Protazio Sande told the committee he was the acting chief executive, a role to which he was appointed with effect from 1 June, a day after the contract of the long-serving chief executive, Dr Ibrahim Kaddunabbi Lubega, expired. Dr Kaddunabbi, who led the authority for about 16 years, maintained that a High Court order preserving the existing position meant he remained the substantive chief executive while his case was heard.

The committee’s chairperson, Muwada Nkunyingi, the National Unity Platform MP for Kyadondo East, said COSASE could not reasonably examine the audit queries while it was unclear who should answer for them. “We want to know who to hold accountable,” he said, directing that the officials return on 25 August with the Permanent Secretary and Secretary to the Treasury to establish who is legally mandated to head the authority. Because the dispute was before court, he added, the parties should also consider resolving it amicably.

The disagreement dates back to 16 February, when the IRA board decided not to recommend Dr Kaddunabbi for another term. The board has said its decision followed governance concerns, including a whistleblower complaint and matters raised in an audit. On 29 May, Justice Joyce Kavuma issued an interim order stopping the board from acting on that decision until the challenge is heard, though the judge also made clear that the order did not itself renew his contract. The Ministry of Finance appointed Dr Sande as acting chief executive for six months from 1 June.

Both sides have set out competing positions in court. The IRA, together with former board chairperson Dr Isaac Nkote Nabeta, has asked for the case to be dismissed, arguing that Dr Kaddunabbi’s contract expired automatically and that events have overtaken the dispute. Dr Kaddunabbi contends that he was denied a fair hearing, points to the growth of the insurance sector during his tenure, and disputes the way term limits have been applied to his case.

At the committee, Dr Nkote said the board had declined to recommend Dr Kaddunabbi for reappointment after evaluating his performance, while the current board chairperson, Keto Nyapendi Kayemba, said that decision had been upheld and that Dr Sande was appointed after the board assessed senior staff. COSASE said it would obtain a copy of the court order to establish the legal position.

Several MPs urged caution. Hoima City Woman MP Asinasi Nyakato asked the acting chief executive to support his account with documentary evidence, noting that the committee works from evidence. Budadiri East MP Julius Nakiyi observed that the matter appeared to be one between Dr Kaddunabbi and the board, while Mpindi Bumali, who represents persons with disabilities, questioned why an acting appointment had been made while the court process was still pending.

COSASE is expected to resume its examination of the audit once the Treasury has clarified the leadership question and the committee has studied the court documents. With Parliament pressing statutory bodies on how they manage public funds, members said establishing who lawfully heads the IRA was essential before the audit could be taken forward. The substantive case remains before the High Court.