By Dean Lubowa Saava
Developing Story: Uganda’s Ministry of Finance has been rocked by a massive financial scandal, with nine senior officials arrested for their alleged involvement in the fraudulent diversion of Shs 60 billion (approximately USD 15.7 million) of public funds through the Bank of Uganda.
The suspects include Accountant General Lawrence Semakula, Jennifer Muhurizi, Mubarak Nansamba, Tony Yawe, Paul Lumala, Mark Kasuku, Nayebare, Judith Ashaba, and Deborah Kusiima.
According to Police spokesperson Rusoke Kituuma, the arrests follow an ongoing investigation into the mysterious disappearance of billions of shillings. The suspects were summoned by the CID, and Kituuma confirmed that they are now in custody.
The scandal revolves around two suspicious transactions. USD 6.134 million intended for the World Bank was misdirected to Roadway Company Limited in Japan, while USD 8.596 million earmarked for the African Development Fund was fraudulently paid to MJS International London in the UK.
Deputy BoU Governor Michael Atingi-Ego denied reports that the Central Bank’s financial system had been hacked, stating that the fraud incidents were initiated outside the BoU IT systems.
Atingi-Ego explained that the Bank of Uganda is a paying entity that follows instructions, and that the fraud incidents involved instructions to pay the wrong beneficiaries.
The Bank of Uganda has recovered USD 8.205 million of the funds sent to MJS International, but efforts to retrieve the funds sent to Japan have been complicated by MUFG Bank’s lack of cooperation.
This scandal has raised concerns about the integrity of Uganda’s financial systems and the accountability of those entrusted to manage them.
The arrests mark a significant crackdown on financial malpractice within government institutions, and the case is likely to have far-reaching implications for the country’s financial sector.
