Matthew Bagonza
The Anti-Corruption Court has released Matthew Bagonza, the head of the secretariat of the Presidential Advisory Committee on Export and Industrial Development (PACEID), on bail, but his freedom comes with conditions extending to property belonging to his sister.
In its October 14, 2026 ruling, the court ordered Bagonza to deposit Shs20 million in cash as bail, while each of his sureties must execute a non-cash bond of Shs30 million.
The court further directed him to surrender his passport and prohibited him from travelling outside Uganda without prior permission.
Among the additional conditions imposed on Bagonza is an order to deposit his land title and that of his sister with the court as security.
He must also report to the court registrar whenever his case comes up for mention before the magistrate’s court.
The bail decision comes as Bagonza faces charges of money laundering and abuse of office arising from his work at PACEID, a presidential initiative chaired by Odrek Rwabwogo, President Yoweri Museveni’s son-in-law.
Bagonza was first arraigned on September 17, 2026, over allegations that Shs171.7 million was transferred from a PACEID account into his personal bank account.
He did not enter a plea because the magistrate’s court lacked jurisdiction to try the offences.
According to the prosecution, the alleged transactions took place between September 2023 and August 2026 through Housing Finance Bank’s Kololo branch.
The prosecution alleges that the money was transferred from an account held in the name of the Office of the President’s Presidential Initiative on Export and Industrial Development to Bagonza’s personal account.
Investigators allege that the transactions were intended to conceal the origin of the funds.
Bagonza also faces an abuse-of-office charge linked to allegations that, in January 2024, he irregularly registered and incorporated the Presidential Initiative on Export and Industrial Development as a private limited company with objectives similar to those of his employer.
The prosecution alleges that the action was prejudicial to the interests of the Government of Uganda.
Bagonza, who is also reported to have served as a director and shareholder of the private company, worked as head of the PACEID secretariat under the Office of the President.
He was a close aide to Rwabwogo, who chairs PACEID and is married to Patience Rwabwogo, one of President Museveni’s daughters.
The charges remain allegations, and Bagonza is presumed innocent unless proven guilty.
The criminal case unfolded against the backdrop of a public dispute involving PACEID, its chairman Rwabwogo and Chief of Defence Forces Gen Muhoozi Kainerugaba, who is also the President’s son.
In August 2026, Muhoozi used social media to accuse PACEID of operating illegally and threatened action against officials he alleged were involved in corruption.
On August 25, Muhoozi declared that members of the organisation implicated in corruption would be arrested.
“PACEID is an illegal organisation. We shall start arresting its members immediately,” he wrote in one of his posts.
He also warned radio and television stations against hosting PACEID officials, threatening consequences for media organisations that gave them airtime.
The army chief subsequently confirmed that an individual had been arrested, amid reports concerning Bagonza, who was then the head of the secretariat.
The statements placed the presidential initiative under intense public scrutiny, with Muhoozi questioning its legality and the handling of public resources.
Muhoozi later escalated his remarks, announcing that PACEID would be dissolved and its functions, budgets and responsibilities transferred to Operation Wealth Creation.
He also issued threats against Rwabwogo, bringing an increasingly public disagreement between the two members of the President’s family into the political spotlight.
Rwabwogo rejected the assertions that PACEID was an illegal organisation, defending its establishment and mandate.
He explained that the initiative had been established on March 16, 2022, to open export markets for Ugandan products before being placed under the Office of the President on May 25 of that year.
He argued that the organisation’s mandate could only be terminated by the President, who had established it.
Rwabwogo also said Museveni had told him that he had not ordered PACEID’s dissolution.
The PACEID chairman defended the initiative’s work in improving food safety and export compliance, negotiating transport and infrastructure arrangements, and facilitating financing for companies with confirmed export orders.
He said the initiative had exceeded its initial target of generating $6 billion in exports and was moving into a second phase focused on establishing aggregation, cooling and drying centres across 18 zones.
Rwabwogo warned that uncertainty surrounding government institutions and their mandates could undermine investor confidence.
The dispute also took on a family dimension because Rwabwogo is married to Patience Museveni, making him Muhoozi’s brother-in-law.
Muhoozi’s public threats against Rwabwogo and accusations against PACEID raised questions about the initiative’s status and its relationship with government institutions.
However, the allegations made in Muhoozi’s social media posts are distinct from the charges brought against Bagonza in court.
Bagonza’s release on bail allows him to remain out of custody while proceedings continue, subject to the conditions imposed by the court.
The cash deposit, sureties’ bonds, surrender of his passport and deposit of the two land titles are intended to secure his compliance with the court’s requirements.
His obligation to seek permission before travelling abroad and report to the registrar whenever required also remains in force.
The case concerns alleged transfers of PACEID funds and the circumstances surrounding the registration of a private company with objectives similar to those of the presidential initiative.
As the proceedings continue, the court will be required to determine the charges against Bagonza through the judicial process.
It should be remembered that Muhoozi has claimed that his parents forced Odrek Rwabwogo upon him, as reported Here.
Odrek Rwabwogo has also warned against returning the Bachwezi gods, causing Muhoozi diehards to fire back at him, as reported Here.
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