Nine Finance Ministry Officials Arrested in $15.7 Million Fraud Case.
Uganda's Criminal Investigations Directorate arrested nine senior Ministry of Finance officials Tuesday for allegedly diverting 60 billion shillings through the Bank of Uganda.
Police took Accountant General Lawrence Semakula into custody along with officials Jennifer Muhurizi, Mubarak Nansamba, Tony Yawe, Paul Lumala, Mark Kasuku, Nayebare, Judith Ashaba, and Deborah Kusiima.
"I wish to confirm that nine persons were apprehended by our directorate CID," Police spokesperson Rusoke Kituuma said. "We have been investigating the billions of shillings that mysteriously disappeared. In the course of the investigation, we summoned the nine officers from the Ministry of Finance. We can confirm we have them in our custody."
Bank of Uganda Deputy Governor Michael Atingi-Ego denied recent claims that hackers breached the central bank's systems. "These fraud incidents were initiated outside the BoU IT systems to divert the funds," he said. The Bank of Uganda is a paying entity—you receive instructions to pay, and we pay as instructed. The fraud incidents started outside our systems, and instructions came to pay the wrong beneficiaries."
The scheme involved two suspicious transfers last year. On September 12, criminals diverted $6.134 million meant for the World Bank to Roadway Company Limited through MUFG Bank in Japan. Sixteen days later, another $8.596 million intended for the African Development Fund went to MJS International London.
The bank recovered $8.205 million from MJS International, crediting it back to the government's consolidated fund account. Yet efforts to retrieve money sent to Japan face challenges, with Atingi-Ego reporting that MUFG Bank has not helped investigators trace the missing funds.
After discovering the fraud, the Bank of Uganda launched internal reviews and alerted both the CID and the Financial Intelligence Authority. The investigation continues as authorities work to recover the remaining stolen funds.
Uganda's Criminal Investigations Directorate arrested nine senior Ministry of Finance officials Tuesday for allegedly diverting 60 billion shillings through the Bank of Uganda.
Police took Accountant General Lawrence Semakula into custody along with officials Jennifer Muhurizi, Mubarak Nansamba, Tony Yawe, Paul Lumala, Mark Kasuku, Nayebare, Judith Ashaba, and Deborah Kusiima.
"I wish to confirm that nine persons were apprehended by our directorate CID," Police spokesperson Rusoke Kituuma said. "We have been investigating the billions of shillings that mysteriously disappeared. In the course of the investigation, we summoned the nine officers from the Ministry of Finance. We can confirm we have them in our custody."
Bank of Uganda Deputy Governor Michael Atingi-Ego denied recent claims that hackers breached the central bank's systems. "These fraud incidents were initiated outside the BoU IT systems to divert the funds," he said. The Bank of Uganda is a paying entity—you receive instructions to pay, and we pay as instructed. The fraud incidents started outside our systems, and instructions came to pay the wrong beneficiaries."
The scheme involved two suspicious transfers last year. On September 12, criminals diverted $6.134 million meant for the World Bank to Roadway Company Limited through MUFG Bank in Japan. Sixteen days later, another $8.596 million intended for the African Development Fund went to MJS International London.
The bank recovered $8.205 million from MJS International, crediting it back to the government's consolidated fund account. Yet efforts to retrieve money sent to Japan face challenges, with Atingi-Ego reporting that MUFG Bank has not helped investigators trace the missing funds.
After discovering the fraud, the Bank of Uganda launched internal reviews and alerted both the CID and the Financial Intelligence Authority. The investigation continues as authorities work to recover the remaining stolen funds.
