Uganda Police, in collaboration with sister security agencies, has apprehended John Mawerere, the former head of the IT department at Uganda Revenue Authority (URA), in connection with a massive tax fraud operation that cost the government UGX 70 billion.
The arrest marks a significant development in an investigation that has unearthed a well-organized syndicate involving clearing agents and URA personnel who manipulated tax data systems for personal enrichment.
Mawerere’s alleged involvement centers around the manipulation of URA’s Automated System for Customs Data (ASYCUDA World), a key platform used to assess taxes on imported goods, including vehicles.
Investigations revealed that Mawerere worked closely with two notorious clearing agents, identified only as Kato and Katimbo, along with several junior IT officers. This group reportedly altered tax records to understate the value of high-end items, allowing importers to avoid paying full taxes in exchange for hefty bribes.
In one documented case, the taxes for a luxury 2019 Range Rover, originally assessed at UGX 150 million, were reduced to just UGX 30 million. The car owner, in turn, paid the syndicate UGX 50 million as part of the illicit deal, with the operatives pocketing significant profits. The scheme reportedly extended beyond individual vehicles to large shipments, with entire containers of goods being fraudulently processed to evade taxes worth millions.
The full extent of the operation came to light after an internal audit by URA flagged a shortfall of over UGX 70 billion. This prompted URA Commissioner General John Rujoki to order a thorough investigation, which has since implicated a number of IT staff alongside Mawerere. The probe uncovered systemic abuse of the ASYCUDA system, indicating that the fraud had been ongoing for a considerable period.
Authorities believe the syndicate’s actions have dealt a heavy blow to URA, already under scrutiny for widespread corruption. Over the years, URA has been marred by numerous corruption scandals, which have led to calls for deeper reforms. In response, President Yoweri Museveni established a special anti-corruption task force led by David Kalemera, whose mandate is to investigate and reform URA’s operations.
Despite these efforts, corruption appears to remain rampant within the organization. In this case, while Mawerere is in custody at Luzira prison, his accomplices, including Kato and Katimbo, are still on the run. Several other IT personnel implicated in the fraud have also gone into hiding, raising concerns about the ability of security forces to fully dismantle the syndicate.
When contacted, URA spokesperson Robert Kalumba said he had not been informed about the investigation but promised to provide more details once available. However, by the time of publication, no further updates had been provided by URA.
This latest scandal has reignited public concerns about URA’s internal controls and its capacity to curb corruption. With billions of shillings lost, the pressure is mounting on the tax authority to implement more stringent measures to safeguard public funds and restore confidence in its operations.
