The Criminal Investigations Directorate (CID) has arrested nine senior officials from the Ministry of Finance over their alleged involvement in the fraudulent diversion of Shs 60 billion (approximately USD 15.7 million) through the Bank of Uganda (BoU).
By Frank Kamuntu
In a stunning development that has shaken Uganda’s financial community, nine high-ranking officials from the Ministry of Finance have been arrested in connection with a massive financial fraud scandal involving the diversion of Shs 60 billion (approximately USD 15.7 million) through the Bank of Uganda (BoU). This arrest comes after a series of ongoing investigations led by the Criminal Investigations Directorate (CID), which uncovered a complex web of fraudulent transactions involving top government personnel.
Among those taken into custody is Lawrence Semakula, the Accountant General of Uganda, a pivotal figure in the country’s fiscal oversight. Others are; Jennifer Muhurizi, Mubarak Nansamba, Tony Yawe, Paul Lumala, Mark Kasuku, Nayebare, Judith Ashaba, and Deborah Kusiima. The high-profile nature of these arrests suggests a scandal of immense proportions, involving individuals with considerable authority over Uganda’s finances.
Police spokesperson Rusoke Kituuma confirmed the arrests, stating, “Investigations into the missing billions have been ongoing, and we have now taken nine Ministry of Finance officers into custody.” While CID has yet to release further details on the specifics of the allegations, the involvement of such senior officials indicates a well-orchestrated scheme of financial malfeasance at the highest levels.
Despite early rumors of a cyberattack on Uganda’s financial infrastructure, Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, has publicly refuted claims that the central bank’s systems were compromised. He clarified, “Bank of Uganda is a paying entity. We received instructions to pay, and we acted accordingly. However, the fraud incidents were initiated outside our systems.” This statement directs the blame elsewhere, sparking questions about how such a significant amount of money was diverted without immediate detection.
The investigation so far has revealed two major fraudulent transactions. The first occurred on September 12, 2024, when USD 6.134 million intended for the World Bank was illegally rerouted to Roadway Company Limited through MUFG Bank in Japan. A second, even larger transaction of USD 8.596 million, meant for the African Development Fund, was funneled to MJS International in London on September 28, 2024.
While the Bank of Uganda has successfully retrieved USD 8.205 million from MJS International and returned it to the government’s consolidated fund, the recovery of the funds sent to Japan remains uncertain. MUFG Bank’s unwillingness to cooperate with Ugandan authorities has complicated efforts to trace and retrieve the diverted money.
With both the CID and the Financial Intelligence Authority (FIA) continuing their investigations, there is a sense of urgency to uncover the full scale of the scheme. Further developments are expected in the coming days as authorities work to untangle the web of financial misconduct that has implicated some of Uganda’s most trusted financial officials.
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