Kampala, Uganda: The arrest of a suspected fraudulent clearing agent in December 2025, initially presented as a breakthrough in the fight against tax fraud, has instead sparked deeper scrutiny within the Uganda Revenue Authority (URA), with emerging claims pointing to possible internal influence networks.
At the centre of the controversy is Bashir Luwaga, a clearing agent accused by some enforcement officials of involvement in tax evasion schemes and diversion of goods.
However, beyond the official case, multiple sources within the clearing ecosystem and URA have raised concerns about what they describe as a broader network of influence allegedly linked to members of the same family.
According to information attributed to URA sources, Luwaga was arrested on December 9, 2025 following an intelligence-led operation involving two trucks carrying 110,000 adult T-shirts cleared under questionable circumstances.
Traders are said to have paid approximately Shs40 million to facilitate clearance through a bonded warehouse in Namanve, but the consignment was allegedly diverted, leading to an estimated revenue loss of at least Shs100 million.
While URA publicly framed the arrest as part of efforts to combat fraudulent clearing practices—an area it says costs the country hundreds of billions annually—questions soon emerged after the suspect was reportedly released and allegedly resumed operations.
Some insiders further claim that Luwaga has continued to present himself as connected to internal URA processes, though these assertions remain unverified.
Allegations of a Wider Network
Several sources trace the alleged network to a veteran clearing agent, Mubiru Luwaga, said to have operated extensively at major border points including Busia, Malaba, Mutukula, Elegu, and Arua.
According to these accounts, the network historically relied on under-declaration of goods, allegedly involving coordination between clearing agents and insiders to reduce tax liabilities.
One source described the system as structured rather than isolated, though these claims have not been independently verified.
It is further alleged that influence linked to the same family may have continued through several individuals identified as Sharifah Nakelema Luwaga, Kim Luwaga, Pedro Luwaga, Arafat Luwaga, and Bashir Luwaga.
Recruitment and Access Concerns
The controversy intensified in 2025 with claims surrounding Sharifah Nakalema Luwaga, described by sources as a trader and clearing agent.
Sources allege that following an enforcement incident involving her goods, she engaged with senior URA leadership, including Commissioner General John Musinguzi Rujoki.
It is further claimed that she may have been granted a role linked to intelligence operations within URA, although the authority has not publicly confirmed the existence or terms of such a position.
Additional allegations suggest that other individuals identified as Kim and Pedro Luwaga may have been recruited into the institution without standard procedures, claims that remain unverified.
Staff members who spoke on condition of anonymity said the situation has raised concerns internally, with some calling for transparency in recruitment and qualification processes.
“These are highly technical roles that require strict vetting. Transparency is not optional,” one staff member said.
Concerns Over Enforcement and Influence
Some sources have also raised concerns about how enforcement actions are carried out, citing cases where traders’ goods were impounded under unclear circumstances.
They allege that affected traders are sometimes redirected toward alternative clearing channels linked to individuals associated with the same network, though no official confirmation has been provided.
One name that frequently appears in these claims is Arafat Luwaga, described by sources as a beneficiary of redirected business.
During an internal meeting on April 24, the URA Commissioner General is reported to have dismissed concerns about conflict of interest, stating that no such conflict exists between individuals mentioned.
The overlap between the December arrest and the broader allegations has intensified scrutiny on URA at a time when the authority continues to position itself as aggressively tackling tax evasion.
URA estimates that corruption and revenue leakages cost Uganda more than Shs450 billion annually.
Analysts say that if the claims are substantiated, they would point to vulnerabilities not just outside but within the system itself.
Unanswered Questions
Many of the allegations remain unproven, and efforts to obtain official responses from URA and individuals named in this report were unsuccessful by press time.
However, the claims raise broader concerns about institutional accountability and oversight within one of Uganda’s most critical revenue agencies.
They also pose a fundamental question: can a tax authority effectively combat corruption if it is perceived to face internal influence challenges?
If you would like your article/opinion to be published on Uganda’s most authoritative news platform, send your submission on: [email protected]. You can also follow DailyExpress on WhatsApp and on Twitter (X) for realtime updates.
