Announced as a revolving, low-interest loan fund, the money was intended to help music promoters recover from years of financial strain, revive event production, and stimulate an industry that provides jobs to thousands of Ugandans, particularly young people.
At the time, the pledge sparked optimism across the entertainment sector. Stakeholders viewed it as part of the President’s broader wealth-creation agenda, aimed at cushioning creative workers still reeling from post-pandemic disruptions. Sources close to the presidency described the initiative as an effort to “empower youth and revitalise the entertainment economy.”
But within weeks, that optimism gave way to scrutiny. On February 6, 2026, the Criminal Investigations Directorate (CID), working jointly with the State House Anti-Corruption Unit (SHACU), summoned five senior officials of the SACCO over allegations of mismanagement and diversion of funds.
The move followed complaints from members, including Tonny Ssempijja, who alleged that money meant for transparent lending to promoters had either disappeared or been diverted for personal benefit.
Another aggrieved member, Norbert Twezire, known as Nobat Events, called for the immediate exit of Abbey Musinguzi, popularly known as Abitex, accusing him of hijacking billions in government bailout funds deposited in the SACCO under his control.
Those summoned include Paul Katongole, Godfrey Mayanja, Yasin Kawesi, Abbey Musinguzi (Abitex), and Zaidi Kafeero.
They were ordered to appear at the anti-corruption unit’s offices at Parliament on February 9, 2026, to record statements and assist investigators probing how the funds were received, managed, and disbursed.
CID spokesperson Tom Magambo confirmed the joint investigation to Uganda Radio Network (URN), stating that detectives are verifying accountability and utilisation of the funds.
Officials from the anti-corruption unit, led by Lt. Col. Edith Nakalema, reiterated their mandate to pursue suspected misuse of public resources, regardless of sector.
In an interview with our reporter, Abitex denied wrongdoing, describing the allegations as “baseless.” He insisted the funds were being managed transparently and urged patience as investigations continue, though he declined to provide detailed disbursement records, citing the ongoing probe.
The investigation unfolds against a backdrop of long-standing divisions among Uganda’s music promoters. Many insiders say these rivalries have intensified in recent years and are now intertwined with the SACCO dispute.
Much of the tension has played out within the Uganda National Promoters Association (UNPA), formed to unify and regulate legally operating promoters but increasingly marked by internal power struggles.
Key figures in these disputes include Balaam Barugahara, a prominent promoter appointed State Minister for Youth and Children Affairs in 2024; Andrew Mukasa, popularly known as Bajjo; and Abitex himself. Conflicts have centred on event organisation, access to funding, political affiliations, and control of industry structures.
Once allies, Abitex and Bajjo jointly sued the Inspector General of Police in 2019 over blocked shows and later opposed a proposed 18 per cent tax on events.
Their relationship later fractured amid accusations of financial impropriety and disputes over control of industry funds. In 2023, UNPA reportedly ousted Abitex from leadership following disagreements linked to high-profile concerts, deepening divisions within the sector.
Critics argue that the UGX 1.5 billion donation, rather than uniting promoters, has deepened mistrust, transforming a recovery initiative into a flashpoint for rivalry and suspicion. Legally, the case raises significant accountability concerns. Under the Cooperative Societies Act (Cap. 112), savings and credit cooperatives are required to maintain strict financial controls, conduct regular audits, and ensure member participation in governance.
The Registrar of Cooperatives has the authority to intervene in cases of suspected fraud, with sanctions ranging from the removal of leaders to dissolution. Investigators are also relying on the Anti-Corruption Act, 2009, which criminalises embezzlement, abuse of office, and diversion of public funds. Convictions can attract penalties of up to 14 years’ imprisonment, asset forfeiture, and recovery of misappropriated funds.
The UMPS probe is not an isolated case. Uganda has witnessed several SACCO-related scandals in recent years, including the 2025 Teachers’ SACCO fraud, in which more than UGX 815 million was allegedly stolen. Parliamentary oversight reports have repeatedly flagged cooperatives as vulnerable to abuse when governance structures are weak.
Racheal Magoola, Woman Member of Parliament for Bugweri District and Chairperson of the Uganda Parliamentary Forum for Creative Industries, warned of the high stakes in a sector that employs an estimated 12,000 to 14,000 people but remains largely informal.
Citing a 2025 study estimating the industry’s contribution to gross domestic product at just 0.2 per cent, Magoola noted that many artists earn less than UGX 1 million annually, while others earn nothing at all.
Against this backdrop, any mismanagement of recovery funds represents not only financial loss but a missed opportunity to support youth employment, cultural growth, and economic inclusion.
As investigations continue, the outcome is likely to shape public confidence in presidential donations and government-backed cooperatives.
For Uganda’s fragile and deeply divided creative sector, the probe may prove a defining moment. For now, the music continues. But behind the scenes, promoters wait anxiously for answers.
-URN
