A web of influence, alleged insider dealing, and controversial recruitment practices is threatening to shake the credibility of the Uganda Revenue Authority, with multiple sources pointing to a single family said to wield extraordinary power within the institution.
At the center of the claims is Mubiru Luwaga, a former clearing agent who, according to sources familiar with customs operations at Uganda’s major border point including Busia, Malaba, Mutukula, Elegu and Arua built a vast network during his time as a broker dealing in auctioned goods.
Individuals who have worked within the clearing ecosystem allege that Luwaga perfected a system of tax under-declaration, negotiating deals with importers to drastically reduce payable taxes.
In one example cited by a long-time associate, a container assessed at Shs300 million in taxes could allegedly be cleared for as little as Shs50 million paid to URA, with the balance shared between the agent, insiders, and facilitators.
“These were not isolated incidents. It was a system,” a source claimed, describing a coordinated network involving insiders within the authority.
Although Luwaga has since retired, sources allege that his influence never left. Instead, it evolved through his children.
Rise to Influence
The controversy deepened last year when Sharifah Nakalema Luwaga, renowned businesswoman described by sources as both a clearing agent and daughter of Luwaga, reportedly entered the inner circles of URA leadership when she had a women’s handbags consignment.
According to multiple accounts, Sharifah approached the Commissioner General, John Musinguzi Rujoki, following the seizure of her goods.
During their engagement, she allegedly proposed to become an intelligence asset for the authority, offering insider information on tax evasion networks.
However, the arrangement reportedly came with conditions: formal employment within URA, a monthly salary of not less than Shs10 million, and the creation of a new position “Manager Intelligence” a title source says did not previously exist in the authority’s structure.
Sources claim the proposal was accepted.
In what has raised further concern internally, Sharifah is also said to have influenced the recruitment of her brother identified as Kim Luwaga and sister Pedro Luwaga into the authority without standard vetting procedures.
Another sibling, Bashir Rashid Luwaga, allegedly operates as an “informer” but is said to present himself as a senior figure within URA circles.
In December last year, Sharifah reportedly traveled with senior management to China on what was described as a benchmarking mission on tax administration and evasion schemes.
While such trips are not unusual for senior officials, insiders question how a non URA staff (at that time) secured a place on a high-level delegation.
“This was someone who had not entered the system but was already operating at the highest levels. In fact it is on this trip that she was confirmed as URA worker.” a source said.
Since her reported appointment, Sharifah is accused by insiders of exercising sweeping influence over enforcement actions.
One case frequently cited involves the impounding of over 40 containers belonging to various traders under unclear circumstances.
Sources allege that such actions often result in traders being frustrated into seeking alternative clearing channels allegedly controlled by individuals linked to her family.
In particular, a clearing agent identified as Arafat Luwaga is said to benefit from containers flagged by intelligence units reportedly overseen by Sharifah.
Critics within URA describe this as a conflict of interest, where enforcement power may be used to redirect business. However, much as during staff meeting on 24th April this was raised to the Commissioner General, he downplayed it and said she is not conflicted.
Unanswered Questions
The developments have sparked unease within URA, with some staff reportedly petitioning the Human Resource department to publicly disclose the qualifications and recruitment processes of Sharifah and her siblings.
“These are highly technical roles that require specific training and vetting,” one staff member said. “Transparency is critical.”
As of now, URA management has not publicly responded to these concerns.
Criminal Charges
Further controversy surrounds Bashir Luwaga, who is reportedly facing allegations linked to the under-declaration and smuggling of goods, including a container said to contain campaign materials belonging to Rukiga Woman MP Sylvia Arinaitwe.
Sources allege that Bashir solicited approximately Shs22 million in bribes to facilitate tax manipulation, part of which was allegedly shared with officials within the system.
Despite claims that he confessed and used his personal Tax Identification Number in the transaction, he is said to remain active within URA premises.
Under the East African Community Customs Management Act, customs brokerage is a regulated function requiring formal licensing. Operating outside this framework would constitute a violation of the law.
A test of institutional integrity
The unfolding allegations present a significant test for URA’s leadership and governance structures.
If substantiated, they point to systemic vulnerabilities where informal networks, familial ties, and discretionary power intersect in ways that could undermine revenue collection and public trust.
Efforts to obtain an official response from URA and the individuals named were ongoing by press time.
