The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has issued an arrest warrant for directors of Microfinance Support Centre Limited (MFSC) after the institution failed to appear before the committee for the second time.

COSASE Chairperson Muwada Nkunyingi said the MFSC officials had been summoned to respond to audit queries arising from the Auditor General’s report for the financial year ended 2024/25.

The report raised several financial concerns, including the write-off of loans worth Shs66 billion, Shs13 billion in undisbursed funds intended for Emyooga beneficiaries, and Shs6.6 billion in loans reportedly issued without security, among other anomalies.

Nkunyingi also accused MFSC officials of relying on a ruling of the 11th Parliament as justification for refusing to appear before the committee.

Following the repeated failure to attend, COSASE has summoned the MFSC directors, led by Managing Director John Kasule, to appear before the committee on Friday, August 28, 2026, at 2:00 p.m.

The directors are expected to respond to the audit queries and account for the financial irregularities highlighted in the Auditor General’s report.

The committee says failure to honour the latest summons could trigger further action against the officials.

By Francis Lubega