CEO sacked as Uganda Airlines crisis exposes deeper MDA governance gaps

KAMPALA, Uganda — The dismissal of the chief executive officer of Uganda Airlines has renewed scrutiny of how Uganda manages its state agencies and how those institutions compare with peers in other developing countries. President Yoweri Museveni ordered the removal of Jennifer Bamuturaki after months of complaints over losses, procurement disputes and unanswered audit queries. The move follows a tense State House meeting last year in which the president rejected explanations from management and later blocked any contract extension, directing the board to recruit a new CEO.

Uganda Airlines has posted heavy losses since its 2019 revival, including about Shs324.9 billion in 2022 23 and Shs237.8 billion in 2023 24, according to figures cited in official briefings. Investigations by police and the State House anti corruption unit are examining alleged abuse of office, embezzlement and false accounting involving airline officials. Bamuturaki informed staff on Feb. 2 that the CEO position would be advertised, even as public calls grew for arrests and prosecutions.

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The fallout has also exposed the influence of external actors in public enterprises. Journalist Andrew Mwenda publicly welcomed the firing and suggested foreign leadership options, citing experience from Ethiopian Airlines and naming former CEO Girma Wake and current CEO Mesfin Tasew. Critics said such commentary risks parallel power centers that weaken boards and managers. Former presidential aide Duncan Abigaba argued that outside brokers erode merit and stability, warning that any new managing director would face the same pressure.

Supporters of Mwenda countered that the airline’s problems were documented long before social media debate, including in Parliament. Opposition leader Joel Ssenyonyi and others have repeatedly questioned governance and value for money at the carrier. Analysts say the dispute reflects a larger pattern in Uganda’s ministries departments and agencies, known as MDAs, where political interference, patronage networks and weak boards often blunt accountability.

A comparison with other developing countries shows a different playbook can work. In Ethiopia, the national airline has long operated with professional management insulated from day to day politics, clear performance contracts and strong board oversight. Rwanda and Morocco have pursued similar models across key agencies, pairing local leadership with global benchmarks, transparent procurement and strict audit follow up. Where governments set strategy but avoid operational meddling, state firms tend to retain talent and control costs.

Uganda’s MDAs often struggle to sustain that separation. Frequent leadership changes, informal influence and slow enforcement of audit findings weaken incentives to perform. The Uganda Airlines case shows how losses can persist while responsibility remains blurred between boards, line ministries and powerful outsiders. Experts say reform must go beyond changing faces to strengthening boards, protecting managers from interference, publishing performance data and enforcing consequences.

As Uganda Airlines prepares to recruit new leadership, the test will be whether the process is open and competence based, and whether investigations lead to clear outcomes. Without deeper governance fixes across MDAs, analysts warn that the turbulence at the national carrier will remain a familiar pattern rather than a turning point.

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