A Ugandan court has charged nine senior officials from the Ministry of Finance, Planning, and Economic Development with a series of offenses, including corruption, electronic fraud, and money laundering, following a high-profile hacking incident that led to a $21 million financial loss at the country’s central bank.
The charges stem from an elaborate scheme in which funds intended for international debt repayments were redirected to foreign companies, a case that has shaken public trust in Uganda’s financial governance. The hacking occurred in 2023, with the accused allegedly using fraudulent methods to reroute payments from the central bank’s account to accounts in Japan, Poland, and the UK.
Details of the Fraudulent Transfers
According to the charges filed in Kampala Magistrate Court, the funds meant for the International Development Association (IDA) and the African Development Bank were unlawfully transferred. A significant portion of the misdirected funds included a $6.134 million payment intended for the World Bank’s debt servicing, which ended up in a Japanese company’s account at MUFG Bank. Similarly, $8.569 million, designated for the African Development Bank, was diverted to NJS International, a firm in London.
The accused individuals face a total of 11 charges, including five related to corruption, two charges of financial loss, and one charge of abuse of office. The charges also include two counts of electronic fraud and one for money laundering, all in violation of Uganda’s Anti-Corruption Act and the Computer Misuse Act.
Key Figures Charged
The individuals named in the court filings include high-ranking officials such as Lawrence Semakula, the Accountant General of the Ministry of Finance; Jennifer Muhuruzi, the acting director of Treasury Services and Asset Management; and Tonny Yawe, a senior IT officer. Others implicated are Deborah Dorothy Kusiima, an accountant; Judith Ashaba, a research assistant; Bettina Nayebare, and Mark Kasiiku, both IT systems officers. A criminal summons has been issued for Pedson Twesigomwe, an assistant commissioner, after she failed to appear in court.
Court Proceedings and Future Investigations
The accused were not permitted to enter a plea, as the money laundering charge can only be heard in the High Court. The judge also denied their bail application, remanding them in custody until their next appearance on February 18. The court will address the case’s full scope, with ongoing investigations into whether others were involved in the fraudulent activities.
A Shocking Breach in Financial Security
This incident highlights serious vulnerabilities in Uganda’s financial infrastructure and raises concerns about the effectiveness of its cybersecurity measures. As authorities continue their investigation, the scandal underscores the critical need for stronger systems to prevent similar breaches and ensure accountability in the management of public funds.
The ongoing legal proceedings and further investigations will likely reveal more about the scale of the breach and its long-term implications for Uganda’s financial and governance systems. The case continues to make headlines as one of the most significant instances of financial fraud in Uganda’s recent history.
