KAMPALA- The Anti-Corruption Court in Kampala has today February 6th 2025 remanded nine officials from the Ministry of Finance over their alleged involvement in a Ugx 60 billion fraud scandal at the Bank of Uganda.
The nine suspects face 11 charges, including money laundering, electronic fraud, causing financial loss, abuse of office, and corruption.
Their arrest on Tuesday this week marked a significant breakthrough in a case that had previously seen little action, despite Bank of Uganda acknowledging the fraudulent transactions.
Among the officials charged are Accountant General Lawrence Ssemakula, Paul Lumala, Jennifer Muhulizi, Mubarak Nsamba, Mark Kasuku, Tony Yawe, Deborah Kusiima, Betinah Nayebare, and Judith Ashaba.
The accused appeared today before Chief Magistrate Racheal Nakyazze and Prosecution allege that the officials diverted funds meant for debt repayments to the World Bank and African Development Bank, instead channeling them into private accounts in the United Kingdom and Japan.
According to court documents, a US 6.134 million dollar payment intended for the World Bank was instead sent to Road Way Company in Japan, with the funds deposited into an account on November 12th 2024 and similarly, a US 8.569 million dollar debt servicing payment meant for the African Development Bank was allegedly transferred to NJS International in London on September 28th 2024.
The prosecution further accused Ssemakula and Muhulizi of failing in their duty to protect public funds, while Yawe allegedly manipulated financial systems to divert US 6 million dollars meant for the African Development Bank.
One of the suspects who is still on the run, Pedison Twesigomwe, did not appear in court, prompting the prosecution to seek a criminal summons for his immediate arrest. Prosecutors also argued that Kusiima and Nkalubo played a role in covering up the fraudulent transactions, an act they classified as corruption and money laundering.
However, the defence team, led by lawyers Peter Kabatsi and Bruce Musinguzi, objected to the proceedings, arguing that their clients had not been provided with a summary of charges before plea-taking.
They also applied for bail, citing the court’s lack of jurisdiction over money laundering charges, which fall under the High Court, Magistrate Nakyazze ruled that the case could not proceed until the High Court took up the money laundering charges.
Magistrate Nakyazze remanded the accused until February 18th 2025, when the case will return for mention after prosecution said that investigations are still ongoing, with further inquiries expected before the case progresses. Authorities have assured the public that no effort will be spared in recovering the lost funds and holding the perpetrators accountable.
This scandal has raised serious concerns about financial oversight within the Ministry of Finance, with increasing calls for tighter controls on government transactions to prevent future fraud cases.
