Nine senior officials from the Ministry of Finance, including Accountant General Lawrence Semakula, have been arrested over their alleged role in the misappropriation of Shs 60 billion (approximately USD 15.7 million) through the Bank of Uganda (BoU).
The Criminal Investigations Directorate (CID) confirmed the arrests, with Police spokesperson Rusoke Kituuma stating that the suspects were taken into custody as part of an ongoing inquiry into the disappearance of public funds.
“I can confirm that nine individuals were arrested today by our CID team,” Kituuma announced. “This investigation has been in progress, and we have now detained key officials from the Ministry of Finance for further questioning.”
Those arrested include:Lawrence Semakula, Accountant General,Jennifer Muhurizi,Mubarak Nansamba,Tony Yawe,Paul Lumala,Mark Kasuku, Nayebare,Judith Ashaba and Deborah Kusiima.
Authorities have indicated that additional arrests may follow as investigations develop.
Deputy Bank of Uganda Governor Michael Atingi-Ego has refuted claims that the Central Bank’s financial system was hacked. Instead, he explained that fraudulent transactions were initiated externally, with deceptive payment instructions leading to funds being sent to unauthorized accounts.
The scheme reportedly involved two suspicious transfers: USD 6.134 million, originally allocated to the World Bank, was instead redirected to Roadway Company Limited via MUFG Bank in Japan on September 12, 2024. USD 8.596 million, intended for the African Development Fund, was fraudulently transferred to MJS International London, UK, on September 28, 2024.
After detecting discrepancies, BoU launched an internal review and reported the matter to CID and the Financial Intelligence Authority (FIA).
Atingi-Ego confirmed that USD 8.205 million from the funds sent to MJS International in London had been successfully recovered and credited back to Uganda’s consolidated fund.
However, retrieving the USD 6.134 million sent to MUFG Bank in Japan has proven challenging, as the Japanese financial institution has reportedly been uncooperative.
The detained finance officials are currently being interrogated as authorities work to uncover the full extent of the fraudulent scheme. Investigators are also collaborating with international banks to recover the outstanding funds and bring those responsible to justice.
This case has raised fresh concerns about financial security and accountability within Uganda’s public sector, prompting calls for stricter oversight of government transactions.