A high-stakes corporate financial scandal has rocked both Old Mutual Investments Group and national carrier Uganda Airlines after disturbing details emerged surrounding an alleged $100,000 (Shs 370 million) kickback scheme linked to a massive Shs 107 billion ($29.1 million) unit trust transaction.
At the center of the controversy are two top executives at Old Mutual Investments Uganda, a senior finance official at Uganda Airlines, and an Independent Financial Adviser (IFA) who blew the whistle when corporate ethics were compromised.
Although internal investigations and police inquiries were initiated, official findings remain tightly under wraps.
EDITOR’S NOTE ON INDIVIDUAL IDENTITIES: To allow ongoing regulatory and legal reviews to proceed without prejudice, the real names of all individual executives, advisers, and internal auditors—at both Old Mutual and Uganda Airlines—have been redacted for this edition. Their full names, official titles, and voice recordings will be published in subsequent releases of this series.
The Genesis of a $29.1 Million Deal
The trouble began in early March 2026, when Uganda Airlines sought to boost its unit trust portfolio managed by Old Mutual Investments Group with $29.1 million.
However, what should have been a standard institutional investment allegedly turned into an extortion attempt.
Investigations reveal that a senior finance executive at Uganda Airlines (“Executive A”) made a covert demand before approving the transfer: he requested a $100,000 kickback from Old Mutual’s Chief Financial Officer (“Executive B”).
Unsure of how to handle the illicit request, Old Mutual’s CFO reached out to his predecessor (“Executive C”) for advice. In an audio recording obtained by our reporters, the predecessor sternly warned the CFO against yielding to the extortion, warning that paying a kickback violated standard governance rules and could trigger severe criminal exposure.
The Whistleblower’s Dilemma
On March 4, 2026, at 1:32 PM, Old Mutual’s CFO placed a 10-minute phone call to the Uganda Airlines account’s assigned Independent Financial Adviser (“Adviser X”).
During the call, the CFO admitted that the Uganda Airlines official was demanding a kickback commission as an absolute condition for executing the fund transfer.
Because Adviser X was the official IFA of record for the Uganda Airlines account at Old Mutual, the CFO sought her guidance on how to proceed.
Adviser X took a firm ethical stance. According to official police statements, she warned Old Mutual’s executive directly:
“I made it very clear that I do not support nor condone any form of kickback or unethical commission arrangement. The appropriate course of action would be to escalate the matter to the airline’s executive leadership.”
Adviser X recorded the entire conversation to protect herself. The next morning—March 5, at 9:13 AM—she called Old Mutual’s CFO again, reminding him that the State House Anti-Corruption Unit (SHACU) was actively probing mismanagement at Uganda Airlines, making any kickback scheme an absolute landmine.
Despite her warnings, the money moved less than 24 hours later—and the fallout inside both institutions was immediate.
NEXT IN PART 2: The 379 Million Shilling Discrepancy & The Missing Accounts — How an ethical adviser was quietly purged after Shs 107 Billion arrived at Old Mutual from Uganda Airlines.
Subsequent publications will reveal the true identities of all executives, advisers, and investigators involved.
The post PART 1: THE $100,000 DEMAND: How a 107 Billion Shilling Uganda Airlines Transfer to Old Mutual Triggered a Secret Kickback Probe appeared first on Watchdog Uganda.