By Pepper Intelligence Unit
The bombshell order by President Yoweri Museveni sending top officials of the Uganda Registration Services Bureau (URSB) on leave pending investigations did not, according to documents and insiders who spoke to Red Pepper, come out of nowhere.
At the centre of the storm is Gilbert Agaba, the Commissioner for Business Registration, whose bitter dispute with the URSB management and Board allegedly triggered a chain of events that eventually reached the Office of the Attorney General under the Ministry of Justice and Constitutional Affairs and, ultimately, State House.
The fallout has now engulfed the very leadership of the institution.
Registrar General Mercy Kainobwisho, Assistant Commissioner for Business Registration Walid Kule, Commissioner for ICT Arthur Kwesiga, and Deputy Registrar General for Finance and Administration Alex Anganya are among officials affected by the presidential directive.
President Museveni ordered the officials to go on leave as investigations into allegations of embezzlement of government funds, abuse of office, maladministration, money laundering and institutional mismanagement at URSB get underway.
But documents seen by Red Pepper paint a much more complicated picture.
They show that long before the President issued his July 24 directive, URSB management and its Board had already been locked in a serious administrative battle with Agaba over his leadership, conduct, relationships with staff and compliance with management directives.
And when disciplinary action was eventually taken against him, Agaba rejected the findings and sanctions.
He instead raised allegations of criminal conduct and misuse of institutional resources against management and referred the matter to outside authorities.
That move changed the entire direction of the dispute.
THE FIRST CRACKS
According to an internal brief seen by RedPepper on the matter, URSB management had received repeated complaints about Agaba’s leadership, performance, communication and working relationships within the Business Registration Department.
The complaints were not presented as a one-off disagreement.
Management said the problems were affecting departmental coordination, staff relations and service delivery.
Interestingly, the concerns allegedly predated Agaba’s current posting.
The brief states that similar complaints concerning teamwork, cohesion and leadership had previously emerged during his tenure as Commissioner for Intellectual Property.
His transfer to Business Registration was therefore reportedly viewed as an opportunity for him to provide leadership to an already established team.
Instead, according to management, relations within the department deteriorated further.
Among the concerns raised were allegations that Agaba was persistently absent from duty and not sufficiently available to provide direction to his department.
Management also complained of inadequate supervision and coordination of staff.
There were further concerns over failure to convene regular departmental and management meetings.
Communication between Agaba and his immediate supervisees was also said to have broken down.
Management accused him of failing to implement and report back on assigned decisions.
There were also broader concerns over teamwork and cohesion, with management saying the situation was negatively affecting planning, performance reviews, accountability and service delivery.
Then came another serious allegation — repeated insubordination against institutional leadership.
MANAGEMENT TRIES TO PUT OUT THE FIRE
The matter did not immediately become a presidential issue.
According to the internal brief, URSB management initially tried to solve the dispute internally.
The Deputy Registrar General responsible for Registries and the Deputy Registrar General responsible for Finance and Administration reportedly intervened several times.
Agaba was counselled and guided on improving communication, supervision and working relationships with his team.
Practical measures were proposed to restore normal departmental operations.
But according to management, the situation did not improve.
The working relationship had allegedly deteriorated to the point where the Registrar General personally intervened.
A meeting was convened to try to resolve the dispute.
Agaba was directed to engage his departmental team and agree on clear working arrangements aimed at improving supervision, communication, accountability and service delivery.
He was also required to submit the agreed arrangements within a specified period.
According to management, that direction was not complied with.
The proposed corrective arrangements were not implemented.
The matter was consequently escalated for formal investigation under the URSB Human Resource Manual and applicable administrative procedures.
That was the beginning of what would become a much bigger institutional war.
AGABA GOES OUTSIDE URSB
Before the internal administrative process could be concluded, Agaba raised allegations with the Chairperson of the URSB Board Amb. Francis Butagira.
He subsequently referred substantially similar allegations to external institutions, including the Economic Crimes Division of the Uganda Police Force and the Office of the Attorney General headed by Dr Sam Mayanja.
The allegations included claims of criminal conduct, corruption and misuse of institutional resources.
The Board responded by constituting an Investigation Committee.
The committee was tasked with examining both sides of the dispute — the allegations raised by Agaba and the management concerns regarding his performance, leadership and governance.
Agaba was reportedly asked to allow the committee to complete its work and avoid actions that could expose URSB to reputational damage before the process was concluded.
But the dispute continued to escalate.
THE BOARD TAKES A POSITION
On June 8, 2026, Agaba was invited to respond to allegations concerning leadership and governance challenges in the Business Registration Department.
The matter was subsequently considered by the URSB Board at an extraordinary meeting held on July 15.
The Board made findings which were later communicated to Agaba through a warning letter.
One of the findings was that there was a lack of teamwork and cohesion within the Business Registration Department.
The Board cited the entire 2025/2026 financial year, saying the department had not held a departmental meeting or retreat to plan and evaluate its performance.
The Board attributed this largely to what it considered inadequate leadership, teamwork and cohesion.
It also noted that similar concerns had previously emerged during Agaba’s tenure in the Intellectual Property Department.
The Board further found that Agaba had failed to implement and report back on assigned management decisions.
That conduct was treated as insubordination under Section 7.2.4(b)(viii) of the URSB Human Resource Manual.
But the most explosive finding concerned language allegedly used by Agaba against the Registrar General.
According to the Board’s findings, Agaba referred to the Registrar General as a criminal and alleged that the Registrar General was in charge of a criminal enterprise within the institution.
The Board treated the conduct as contrary to the same provision of the URSB Human Resource Manual.
THE WARNING
The Board did not immediately recommend dismissal.
Instead, it imposed what it described as corrective and progressive measures.
Agaba was ordered to submit a written apology to management within five days of receiving the warning.
He was also placed on a proposed 12-month Performance Improvement Plan under the direct supervision of the Deputy Registrar General responsible for Finance and Administration.
The objective was to improve his leadership and governance style.
The measures were intended to address the conduct established by the Board, restore professional working relationships and give him a structured opportunity to improve.
But Agaba rejected both the findings and the sanctions.
And that is where the URSB battle took another dramatic turn.
THE ATTORNEY GENERAL ENTERS THE WAR
Instead of accepting the Board’s decision, Agaba made ran to the Attorney General, Dr Sam Mayanja.
The Attorney General then escalated the matter to President Museveni.
The move effectively transformed what had started as an internal administrative and disciplinary dispute into a matter involving the highest levels of government.
But insiders are now asking a pointed question:
Why did the matter go through the Attorney General instead of being handled directly by the Minister of Justice and Constitutional Affairs, Nobert Mao, who is the political head of the ministry responsible for URSB?
The question has become even more important because the Attorney General’s office operates within the Justice and Constitutional Affairs docket headed by Mao.
THE JULY 8 LETTER THAT CHANGED EVERYTHING
A letter dated July 8, 2026, from Attorney General Sam Mayanja to URSB Board Chairman Ambassador Francis K. Butagira provides a crucial piece of the puzzle.
The letter was titled:
“Investigations into Agaba Gilbert, Commissioner Business Registration.”
In it, Mayanja acknowledged that Agaba had brought to his attention what he described as certain criminal activities allegedly taking place at URSB.
The Attorney General stated that he had escalated the matters to President Museveni for guidance.
Then came the dramatic instruction.
Mayanja directed the URSB Board to stop its investigations and inquiries into Agaba.
The letter stated:
“This is to direct that you and the URSB Board ceases all investigations/inquiries into Mr. Agaba and await the guidance of His Excellency the President.”
The letter was copied to President Museveni and Minister Nobert Mao.
That instruction effectively froze the disciplinary process against Agaba as the allegations moved to the presidential level.
FROM AGABA’S DISCIPLINARY CASE TO A FULL URSB AUDIT
Three weeks later, President Museveni wrote directly to Minister Mao.
The July 24 letter, bearing the State House reference NPO/17, was titled:
“Embezzlement of Government Funds, Abuse of Office and Maladministration, Money Laundering and Institutional Mismanagement at the Uganda Registration Service Bureau (URSB).”
Museveni directed that several URSB officials go on leave until an audit he was instituting into the activities of the Bureau was completed.
Among those named were Kainobwisho, Kule, Anganya and Kwesiga, with the letter also referring to “others.”
The President directed the Inspector General of Government to lead the investigations, assisted by his auditors Kawawa and Tumwiine.
He also directed his Principal Private Secretary to bring the URSB Board Chairman, Butagira, to him.
The directive dramatically widened the scope of the dispute.
What had begun as a disciplinary case involving one commissioner was now an investigation into the wider operations and leadership of URSB.
The presidential directive uses some of the strongest language possible in an administrative order.
It lists allegations involving government funds, abuse of office, maladministration, money laundering and institutional mismanagement.
Importantly, these are allegations under investigation, not findings of guilt.
The investigations are expected to establish whether the allegations are true and whether any officials breached the law or administrative procedures.
But the consequences were immediate.
The institution’s top leadership was ordered out of the office as the audit commenced.
And at the centre of the chain of events was the dispute involving Agaba.
WE WERE NOT HEARD
According to the affected officials, URSB management does not oppose investigations.
Instead, management says it is ready to cooperate with all lawful investigations.
Its major complaint is about the circumstances in which the presidential directive was reached.
Management argues that the President may not have received the full picture because, according to them, the Attorney General reported the allegations to State House without first giving management an opportunity to present its side.
The officials affected by the suspension therefore want the presidential directive reviewed.
They have also asked for support to expedite a meeting between the URSB Board Chairman and President Museveni so that the Board can present its side of the story.
They further want to meet the Inspector General of Government before the investigations begin.
THE BIG INSTITUTIONAL DILEMMA
The URSB management acknowledges that Agaba’s allegations must be investigated.
In fact, management says the Board had already asked the Department of Internal Audit to investigate them.
But management says there is another side to the story.
Its position is that it had progressively dealt with Agaba’s conduct through counselling, supervisory intervention, direct intervention by the Registrar General, formal investigation and Board consideration.
The Board made specific findings.
It issued corrective measures.
Agaba rejected those findings and refused to apologise.
He also rejected the Performance Improvement Plan.
He instead sought to defer administrative action until investigations by external authorities, including those initiated at the presidential level, were completed.
This has created what management describes as a prolonged institutional uncertainty affecting leadership, staff relations, discipline and service delivery.
WAS IT A COUNTERATTACK?
Within URSB, there are now concerns over the timing and circumstances in which the allegations against management were raised.
Some insiders believe the allegations may have been retaliatory and intended to frustrate or escape the disciplinary process.
But that remains a contention from one side of the dispute.
Agaba’s allegations are now in the hands of external authorities and are subject to investigation.
The very fact that President Museveni ordered a wider audit means that the matter can no longer be dismissed as a simple personality clash between a commissioner and his superiors.
The allegations raised by Agaba will have to be tested.
So too will the allegations and findings made against him by URSB management and the Board.
WHO WILL EXPLAIN WHAT HAPPENED AT URSB?
The July 24 presidential directive has now opened a much bigger question over the management and governance of the government agency responsible for business registration services.
If the investigations establish wrongdoing, those responsible will have questions to answer.
If the allegations prove unfounded, those whose reputations and careers have been affected will also demand answers.
And if both sides made allegations that require investigation, the process will have to determine where the truth lies.
For now, the biggest question remains:
Did Gilbert Agaba blow the whistle on a rotten system, or did an internal disciplinary battle explode into a wider institutional crisis after he rejected sanctions?
That is the question the IGG-led investigations will have to answer.
URSB FIRST DENIES — THEN CONFIRMS AUDIT
Red Pepper contacted URSB for comment before publication.
Initially, the Bureau flatly denied the reports.
“This is not true at all. Utterly false at all fronts,” URSB said.
But only minutes later, the Bureau sent Red Pepper a holding statement confirming that an audit was indeed underway.
In the statement dated August 17, 2026, URSB acknowledged online reports concerning the ongoing audit processes at the Bureau.
The statement said the audit was being undertaken in accordance with established procedures and applicable laws.
URSB also sought to reassure clients, partners and the public that service delivery had not been interrupted.
The Bureau said it continues to provide services through its established channels and remains committed to transparency, accountability and professionalism.
It added that further information would be provided where appropriate upon conclusion of the relevant processes.
The dramatic shift from “utterly false” to an official confirmation that an audit is underway is itself likely to raise more questions about what exactly is happening behind the doors of URSB.
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