A Ugandan court has charged eight finance ministry officials with various of offenses, ranging from corruption, electronic fraud, and money laundering.
This is coming after a hacking incident that resulted in the loss of approximately $21 million from the central bank’s systems. This high-profile case has exposed vulnerabilities in Uganda’s financial institutions and sparked public outrage and criticism.
Central Bank Hacking: $21 Million Stolen in Sophisticated Scheme
The hacking incident, which occurred last year, involved the redirection of payments from their intended beneficiaries to different recipients. The scheme was sophisticated, demonstrating a deep understanding of the central bank’s systems and processes.
Part of the stolen funds was earmarked for the International Development Association (IDA), an arm of the World Bank. These funds, intended as principal and interest repayments on loans to Uganda, were instead diverted to companies in Japan and Poland, according to court documents.
London Company Also Received Illicit Payments from Uganda Central Bank
In addition to the IDA funds, the charge sheet reveals that money was also illegally disbursed from the central bank to a company in London. The details of this transaction are currently under investigation.
In the meantime, the eight officials, including the ministry’s top accountant, face a battery of charges: corruption, causing financial loss, electronic fraud, money laundering, and abuse of office. Their alleged involvement in the theft varied, with each official playing a specific role in the scheme.
One IT officer at the finance ministry is specifically accused of “irregularly altering the payment instructions” for funds intended for the IDA.
This alteration resulted in the money being redirected to a company in Tokyo, Japan and ultimately contributed to the substantial financial loss.
Court Proceedings: Finance Officials Remanded in Prison as Bail is Denied
The officials appeared in a magistrate’s court in Kampala late on Thursday. They were not allowed to enter a plea, as the offenses are triable in the High Court.
They were remanded to prison until February 18 for a mention of their case. A bail application by one of the suspects’ lawyers, Max Mutabingwa, was denied.
This case is part of Uganda’s ongoing efforts in fighting corruption. The scale of the theft and the involvement of high-ranking officials underscore the challenges the country faces in protecting public funds and ensuring accountability. The outcome of this trial will be closely watched as a test of Uganda’s commitment to tackling financial crimes.
