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Kampala, Uganda – The Anti-Corruption Court in Kampala has granted bail to six out of the nine government officials accused of orchestrating a fraudulent scheme that resulted in the loss of over Shs 60 billion from public funds.

The fraud, allegedly executed by manipulating government payment systems, has been described as one of the most sophisticated financial crimes in recent years.

Justice Lawrence Gidudu presided over the bail hearing on Monday, where the six officials were released on bail amounts ranging between Shs 20 million and Shs 30 million. The court also imposed strict conditions, requiring each of their sureties to execute a non-cash bond between Shs 200 million and Shs 300 million.

The accused were further ordered to surrender their land titles and passports before being barred from accessing their respective offices. They must report to the court registrar starting April 3, 2025.

The six officials who secured temporary freedom are:

1. Lawrence Ssemakula – Accountant General, Ministry of Finance
2. Jennifer Muhuruzi – Acting Director of Treasury Services and Asset Management
3. Paul Nkalubo Lumala – IT Systems Officer
4. Deborah Dorothy Kusiima – Senior Accountant, Treasury Services Department
5. Judith Ashaba – Accountant
6. Bettina Nayebare – Research Assistant

Who Remains in Custody?

Justice Gidudu denied bail to Mark Kasiiku, an IT systems officer, and Tonny Yawe, a senior IT officer, citing their central roles in the fraudulent scheme.

Kasiiku is accused of using deception to facilitate the unlawful transfer of funds and allegedly concealing a $6.1 million payment to a company in Japan.

Yawe, on the other hand, is accused of altering critical payment instruction files in the government’s Electronic Funds Management Information System (EFMis), leading to the fraudulent diversion of funds.

The court ruled that both men should provide sufficient security if they wish to reapply for bail.

A ninth suspect, Pedison Twesigomwe, the assistant commissioner for accounts at the Ministry of Finance, had been charged two weeks earlier but did not apply for bail. He remains on remand alongside Kasiiku and Yawe.

How the Fraud Was Executed

Prosecutors allege that the fraud was carried out through manipulation of digital payment systems at the Ministry of Finance and the Bank of Uganda (BoU). According to the prosecution, IT officials exploited vulnerabilities in the EFMis system, allowing them to alter payment records.

One of the key allegations against Yawe is that he diverted funds intended for government projects by redirecting payments to a foreign company, Roadway Company Ltd in Poland. The payment, allegedly disguised as procurement for a recycling plant system and machinery, was later discovered to be fraudulent.

Investigators say that Ssemakula and Muhuruzi, both senior officials at the Ministry of Finance, failed to implement security measures to prevent such fraudulent transactions, leading to a financial loss of $652,588.2 (about Shs 2.5 billion).

The overall fraud, estimated at Shs 60 billion, reportedly involved a network of officials who facilitated the illegal transactions, either by altering records or covering up fraudulent payments.

Tracing the Stolen Money

Preliminary investigations revealed that the missing funds were withdrawn from the Bank of Uganda in September 2024 and funneled into multiple foreign accounts. The money was traced to several countries, including the United Kingdom, Japan, and other Asian nations.

Initially, investigators suspected an external cyberattack, but a forensic audit by the Criminal Investigations Directorate (CID) and Defence Intelligence and Security (DIS) (formerly Chieftaincy of Military Intelligence, CMI) later ruled out hacking. Instead, they concluded that the heist was an inside job, orchestrated by officials within government institutions.

Following a directive from President Yoweri Museveni, DIS intensified investigations, leading to the interrogation of at least 21 employees from BoU, the Ministry of Finance, and the Accountant General’s office. Their electronic devices, including mobile phones and laptops, were confiscated for forensic examination.

According to sources, BoU successfully recovered over half of the stolen funds through UK-based banks. However, efforts to reclaim the amounts transferred to Asian accounts were unsuccessful. Investigators suspect that some of the stolen money was either smuggled back into Uganda in cash or used to procure luxury goods and assets for the beneficiaries.

What’s Next?

With the trial set to continue, the prosecution is preparing to present evidence on 11 charges, including corruption, electronic fraud, causing financial loss, and money laundering. The accused officials face lengthy prison sentences if convicted.

Meanwhile, security agencies continue to widen the scope of the investigation, with sources suggesting that more officials could be implicated in the coming weeks.