KAMPALA – The Bank of Uganda (BoU) is under intense scrutiny as investigations uncover a sophisticated fraud syndicate that siphoned UGX 60 billion from the central bank.
The revelation has sparked nationwide concern, with authorities now racing to dismantle a network believed to involve senior officials from the Ministry of Finance, the BoU, and former ICT personnel from the Uganda Police Force.
Reports indicate that the scheme was carefully planned and executed over several months, exploiting loopholes in the financial system to facilitate unauthorized transactions. Investigations by the Criminal Investigations Directorate (CID) have traced some key players to the United States, where they relocated after previously holding positions in Uganda’s security and financial sectors.
The scandal has reignited concerns over cybersecurity and institutional weaknesses, especially as authorities revisit past fraud attempts targeting the central bank.
In January 2024, Pedson Twesigomwe, the Assistant Commissioner for Accounts at the Ministry of Finance, intercepted a fraudulent transfer of $6 million (UGX 23 billion) destined for Poland. While the funds were successfully rerouted, it now appears this may have been an early attempt by the same syndicate to defraud the government.
Bank of Uganda Distances Itself from the Scandal
As the scandal unfolds, BoU has moved swiftly to distance itself from any wrongdoing, insisting that it merely executed payment instructions provided by external entities.
Deputy Governor Michael Atingi-Ego emphasized that “Bank of Uganda is a paying entity. You get instructions to pay, and we pay as instructed,” further clarifying that the fraud originated outside the bank’s IT infrastructure.
Investigations reveal that the fraudulent activities involved two major transactions. On September 12, 2024, a payment of USD 6.134 million meant for the World Bank was instead funnelled to Roadway Company Limited through MUFG Bank in Japan. Two weeks later, on September 28, 2024, another payment of USD 8.596 million intended for the African Development Fund was redirected to MJS International in London. While authorities have recovered USD 8.205 million, a significant portion of the funds remains unaccounted for.
The involvement of ICT experts in the scheme has raised serious concerns about cybersecurity vulnerabilities in Uganda’s financial sector. Initial reports in November 2024 suggested that hackers had breached BoU’s systems, but subsequent investigations dismissed these claims, confirming that the fraud was orchestrated externally by individuals who manipulated payment processes.
Government Under Pressure to Act
With multiple high-profile arrests already made, security agencies are intensifying efforts to dismantle the criminal network and recover the remaining funds. Nine senior officials, including Accountant General Lawrence Semakula, have been detained and are facing corruption charges.
Meanwhile, financial watchdogs and opposition politicians are demanding accountability from the government, calling for stricter oversight and reforms to prevent future fraud.
The Office of the Auditor General has launched an independent inquiry, and President Yoweri Museveni has directed the Directorate of Intelligence Services (DIS) to join the investigation.
The latest revelations only add to BoU’s woes, reinforcing concerns over the integrity of the country’s banking system.
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