PACEID Head of Secretariat Matthew Bagonza has been formally charged with abuse of office and money laundering in connection with approximately Sh171 million allegedly transferred from the Presidential Advisory Committee on Exports and Industrial Development (PACEID) to his personal bank account.
Bagonza was subsequently remanded until October 5 at 10:00am, when the matter is expected to return to court for further proceedings. However, despite the charges being read in court, Bagonza has not yet taken plea, with the court reportedly finding that it does not have jurisdiction to receive his plea at this stage. The development marks a major turn in a case that has attracted considerable public attention since Bagonza was arrested in August amid an escalating dispute surrounding PACEID and its leadership.
Arrest
Bagonza, who heads the PACEID secretariat, was reportedly picked up by security operatives from his home in Entebbe on August 25, 2026, shortly after a series of public statements by Gen Muhoozi Kainerugaba concerning PACEID. At the time of his arrest, authorities did not immediately disclose where he had been taken, which security agency was holding him or the specific allegations against him.
His detention was later confirmed publicly by Gen Muhoozi, the Chief of Defence Forces, who posted a photograph of Bagonza on social media. The arrest came against the backdrop of Muhoozi’s criticism of PACEID, which he described as an illegal organisation and accused of corruption. Reports at the time indicated that the circumstances surrounding Bagonza’s detention had caused concern within PACEID, with the organisation seeking information about his whereabouts and calling for due process.
PACEID chairman Odrek Rwabwogo said he contacted security agencies after learning that Bagonza had been taken away but initially failed to establish where he was being held. Rwabwogo later said he travelled to Entebbe to meet President Yoweri Museveni after failing to establish which security agency had taken Bagonza.
According to Rwabwogo’s account, Museveni told him that he was not aware of the arrest and had not ordered it, and that he would seek to establish what had happened. The account brought the arrest into sharp focus because it contrasted with Gen Muhoozi’s public statements that arrests of PACEID officials had begun.
Charges
The case has now moved from the uncertainty surrounding Bagonza’s detention to formal criminal proceedings. Prosecution alleges that about Sh171 million was transferred from PACEID to Bagonza’s personal bank account. The circumstances of the alleged transfer and the purpose for which the money was allegedly received are expected to form part of the evidence as the case progresses.
Bagonza faces a charge of money laundering, alongside abuse of office. At this stage, the allegations remain accusations and have not been proved in court. Bagonza is therefore presumed innocent unless and until a competent court determines otherwise.
The decision not to take his plea immediately means the substantive proceedings have not yet reached that stage. He was instead remanded until October 5 at 10:00am, when the court is expected to consider the matter further.
Rwabwogo’s response
Rwabwogo has consistently called for the matter involving his aide to be handled through established legal procedures. Following Bagonza’s arrest, PACEID issued a statement expressing concern about his detention and said its immediate priority was his safety, dignity and due process.
The committee said it had instructed its lawyers to establish where Bagonza was being held, understand the circumstances surrounding his detention and ensure that the law was followed. Rwabwogo subsequently said that if there was a case against Bagonza, it should be presented before a competent court, where the evidence could be tested and the accused given an opportunity to defend himself.
“If there is a case, let it be brought before a competent court. Let the evidence be tested. Let Matthew Bagonza defend himself. And let the law take its course,” Rwabwogo said. He has also defended the legality of PACEID, rejecting assertions that the committee is an illegal organisation.
According to Rwabwogo, PACEID was commissioned on March 16, 2022, and any changes to its mandate would have to follow an established process rather than being determined through social media statements.
PACEID controversy
The Bagonza case comes at a time when PACEID has been the subject of a wider public dispute involving its mandate, operations and leadership. PACEID was established to support Uganda’s export growth, industrial development and access to international markets. Its official profile identifies Bagonza as head of the secretariat and describes the position as involving coordination of the committee’s executive work and engagement with external groups.
The organisation has previously defended its work and rejected allegations concerning its handling of public resources. In May 2025, Rwabwogo publicly denied claims that PACEID had received Sh37 billion intended for coffee-sector interventions. He said the money in question had instead been received by the Ministry of Science, Technology and Innovation and disbursed to a company.
The current criminal case, however, concerns a separate allegation involving the approximately Sh171 million said by the prosecution to have been transferred from PACEID to Bagonza’s personal account.
Next step
Bagonza’s remand means the court proceedings will now move into the next stage as the prosecution and defence address the legal and factual issues surrounding the charges. The question of jurisdiction raised at the initial appearance will also be important because Bagonza has not yet entered a plea to the charges.
The prosecution will ultimately have to establish the allegations against him through admissible evidence, while Bagonza will have an opportunity to challenge the case through his lawyers.
The case is therefore likely to keep attention focused not only on the alleged Sh171 million transaction, but also on the broader dispute surrounding PACEID, its leadership and the circumstances that preceded Bagonza’s arrest. For now, the formal charges represent allegations only. The October 5 proceedings are expected to provide the next significant step in determining how the case will proceed.
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