The Kyegegwa district chairman, Norman Birungi and his deputy Ibrahim Amanya have been charged with abuse of office, conflict of interest and nepotism.
They were charged at the Anti-Corruption Court in Kampala presided over by Grade One Magistrate Margaret Alum on Wednesday.
Birungi was charged with conflict of interest and abuse of office, while Amanya was charged with the offence of nepotism. They denied the charges.
The case is being prosecuted by the Inspectorate of Government (IG).
Birungi was granted a cash bail of sh5m, while Amanya was bailed at sh4m cash after they presented substantial sureties in court. They will reappear in court on April 28 for mention of their case.
According to the IG spokesperson, Munira Ali, the two were arrested on Monday at Hotel Africana Kampala while attending a meeting on decentralization. The arrests followed a number of complaints from whistleblowers.
Prosecution asked court for more time to allow them complete investigations as the matters was complex.