Dr Ssengendo, who has been at the helm of IUIU for nine years, is also accused of subversive activities and turning the institution into ‘a Jeema recruitment ground’- allegations he vehemently denies.
Jeema, known as Justice Forum, is an opposition political party led by Mr Asuman Basalirwa, who previously served as IUIU secretary.
The University Council, the top decision making organ of the university, is slated to meet on March 15.
The meeting has come at a time when the university is marking its 25th anniversary next week with a procession on the streets of Mbale Town.
However, the IUIU spokesperson, Mr Shaban Lukoya, yesterday said the council was likely to retain Dr Ssengendo basing on his achievements.
“That should not worry anybody. What the rector has done so far during his tenure speaks for itself and I have no doubt that he will continue serving in the same position,” Mr Lukoya said by telephone.
Dr Ssengendo was appointed IUIU Rector in 2004, replacing Dr Mahdi Adam.
He has made significant progress in infrastructural development, expansion of academic programmes and maintaining a good image internationally.
Currently, the university has four campuses –Mbale, Arua, Kibuli and Kabojja .
However, his term has also been marred by claims of favouritism, nepotism and greed.
In 2008, the Daily Monitor run a story on how such scandals had threatened to undermine the academic excellence at the university.
Recently, the police interrogated Dr Ssengendo for allegedly possessing four diplomatic passports.
Dr Ssengendo made a statement and was freed without being charged but blamed the case on saboteurs.
Detectives at the Criminal Investigation and Intelligence Directorate have been investigating allegations that the Ministry of Internal Affairs issues passports and visas fraudulently.