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Seven Mbarara Hospital Staff Arrested Over Alleged Mismanagement of Public Funds

Kamwokya Times by Kamwokya Times
July 16, 2026
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Mbarara Regional Referral Hospital Exposes Health System Gaps
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Seven staff members of Mbarara Regional Referral Hospital have been arrested over the alleged mismanagement and diversion of public funds following an audit into the hospital’s financial operations.

The arrests follow investigations conducted over one month and two weeks by the State House Health Monitoring Unit into the hospital’s human resource, clinical and financial management systems. According to the Unit, the investigations uncovered cases of alleged diversion and mismanagement of public funds across several departments.

Speaking during a health baraza organised by the hospital on Wednesday, the Director of the State House Health Monitoring Unit, Dr Warren Namara, said investigators found that some drivers and an electrician had allegedly diverted fuel meant for hospital vehicles and the standby generator by using fraudulent fuel vouchers for fuel that was never accounted for.

Those arrested are Alex Byaruhanga, Francis Kayangiire, Eliasam Mutongole, Lauben Mugasiira, Edgar Mugizi, Principal Hospital Administrator Sarah Mulongo and radiologist David Mugisha. Dr Namara said the drivers and the Principal Hospital Administrator are accused of failing to account for 549 million Shillings.

He alleged that they fraudulently obtained fuel vouchers, which were used to divert fuel, resulting in significant financial losses to the hospital. He added that Mulongo also failed to establish effective internal controls to safeguard hospital funds and property.

She is expected to face charges of facilitating corruption and neglect of duty. Radiologist David Mugisha was separately arrested over allegations of extorting money from patients and referring them to private health facilities for MRI and CT scan services for personal financial gain.

Dr Namara said the suspects are expected to face charges including failure to account and neglect of duty. He added that investigations are still ongoing and that additional arrests or charges could follow depending on the findings.

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Meanwhile, the Acting Hospital Director, Dr Deus Twesigye, acknowledged the challenges facing the facility, saying it is struggling to provide quality services due to budget constraints and critical staffing shortages.

He said the hospital is operating with only 26 per cent of its required workforce, well below the recommended staffing level of at least 36 percent, a situation that continues to strain service delivery-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com

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