Sources familiar with the matter say the President’s decision follows a tense State House meeting held in September 2025, where top airline managers and board members were summoned to explain a series of unresolved audit queries and revenue leakages.
During the closed-door meeting, Museveni is said to have openly expressed frustration with the airline’s leadership, accusing management of failing to protect a company heavily funded by taxpayers.
Multiple sources indicate that the President abruptly asked Bamuturaki to leave the meeting, signaling a serious loss of confidence in her leadership.
Although no immediate public action followed, insiders say that meeting effectively marked the beginning of the end of her tenure.
Board Signals Exit
The clearest sign yet came this week when Bamuturaki circulated an internal email to staff, informing them that the airline’s board would soon advertise the CEO position.
“The Board will advertise the position of Chief Executive Officer shortly, and eligible staff are encouraged to apply,” she wrote.
To many employees, the message confirmed what had long been rumored — that the CEO’s contract would not be renewed.
Police and State House Step In
At the same time, Uganda Police’s Criminal Investigations Directorate (CID), working together with the State House Anti-Corruption Unit, has launched formal investigations into the airline’s financial operations.
In a letter dated January 7, 2026, CID demanded detailed records related to procurement, ticket sales, banking, and revenue management. Investigators are probing allegations of abuse of office, embezzlement, and false accounting involving senior airline officials.
Among the documents requested are aircraft purchase approvals, fuel supply contracts, ticketing agreements, and financial records related to the launch of the London route.
Millions in Question
One of the most troubling findings discussed at State House was a special audit that revealed more than $9.2 million (about Shs35 billion) in passenger service fees continued to be charged long after management had officially scrapped the levy in mid-2023.
Auditors reportedly found no clear evidence showing where the money was banked, raising serious questions about accountability.
Ticketing operations also came under scrutiny. Audits showed that travel agencies linked to airline staff controlled over 90% of heavily discounted tickets, a practice investigators believe may have reduced airline revenue and violated conflict-of-interest rules.
Fuel procurement and aircraft leasing arrangements were also flagged as areas requiring deeper investigation.
Why Museveni Acted
Officials say Museveni’s intervention was driven by frustration that the same issues kept reappearing despite repeated warnings from auditors and technocrats.
“This was no longer about one mistake,” a senior government source said. “There was a clear pattern of weak oversight, missing money, and disputed contracts. The President felt the airline was being mismanaged.”
What Lies Ahead
CID investigations are still ongoing, and no formal charges have been announced so far. Bamuturaki has previously denied wrongdoing, insisting that all decisions were made to support the airline’s growth strategy.
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