Gen Kainerugaba announces PACEID dissolution as OWC takes over

The Chief of Defence Forces Gen Muhoozi Kainerugaba has announced the dissolution of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), with Operation Wealth Creation (OWC) taking over its functions.

Gen Kainerugaba said on August 28, 2026, that the transfer would cover PACEID’s responsibilities and budget and take effect at once.

“We are officially dissolving PACEID as an organisation. All its functions, budgets and responsibilities will be taken over by Operation Wealth Creation,” he posted on X.

He added that discussions were underway over the future of PACEID chairman Odrek Rwabwogo.

During a press conference on August 27, 2026, PLU executive secretary David Kabanda questioned PACEID’s legal status, funding and accountability.

Kabanda, who represents Kasambya County in Parliament, asked government ministries, agencies and local authorities to stop working with PACEID until its mandate was clarified.

He questioned who recruited the organisation’s staff, paid for its offices, approved its spending and received its financial accountability.

Kabanda also alleged that the Finance ministry planned to pay $14 million, about Shs52 billion, to Rwabwogo over supplies reportedly delivered to South Sudan.

He linked the claim to Thomas Farm Company Limited and questioned why Uganda would pay for goods allegedly supplied to another government.

Gen Kainerugaba repeated the claim on August 28 and advised the Finance ministry to send the money to the Uganda Peoples’ Defence Forces. He said the army would use it to build accommodation for soldiers.

The Finance ministry has not confirmed the alleged payment. Documents proving the claim, the reported supplies and Uganda’s liability were not available for this report.

Rwabwogo has rejected the accusations against PACEID. He said President Museveni established the committee on March 16, 2022, to open export markets for Ugandan products. He added that it was placed under the Office of the President on May 25, 2022.

He said only the President could end PACEID’s mandate and that Mr Museveni had not issued such an order.

Rwabwogo said PACEID had helped exporters meet food safety standards, secure financing and enter foreign markets. He also linked the committee’s work to the growth of Uganda’s exports from about $4.5 billion after the Covid-19 pandemic to about $13 billion.

Gen Kainerugaba also warned journalists against supporting PACEID. He accused the organisation of theft and said media workers who became “complicit” would face accountability.

PACEID has denied operating outside government structures or misusing public funds. It has described the allegations against it as false and malicious.