Kampala, Thursday, February 6, 2025 – The Anti-Corruption Court in Kampala has remanded nine officials from the Ministry of Finance over their alleged involvement in a Shs60 billion fraud scandal at the Bank of Uganda (BoU).
The nine suspects face 11 charges, including money laundering, electronic fraud, causing financial loss, abuse of office, and corruption. Their arrest on Tuesday marked a significant breakthrough in a case that had previously seen little action, despite BoU acknowledging the fraudulent transactions.
Senior Officials Implicated
Among those charged is Accountant General Lawrence Ssemakula, alongside Paul Lumala, Jennifer Muhulizi, Mubarak Nsamba, Mark Kasuku, Tony Yawe, Deborah Kusiima, Betinah Nayebare, and Judith Ashaba. The accused appeared before Chief Magistrate Racheal Nakyazze on Thursday.
Prosecutors 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 UK and Japan.
According to court documents, a $6.134 million payment intended for the World Bank was instead sent to Road Way Company in Japan, with the funds deposited into an account at MFUFG Bank on November 12, 2024. Similarly, a $8.569 million debt servicing payment meant for the African Development Bank was allegedly transferred to NJS International in London on September 28, 2024.
Court Proceedings and Legal Wrangles
The prosecution further accused Ssemakula and Muhulizi of failing in their duty to protect public funds, while Yawe allegedly manipulated financial systems to divert $6 million meant for the African Development Bank.
Additionally, Pedison Twesigomwe, who is also implicated, 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.
Despite this, Magistrate Nakyazze ruled that the case could not proceed until the High Court took up the money laundering charges. As a result, all the accused were remanded until February 18, 2025, when the case will return for mention.
Ongoing Investigations
The state confirmed 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.
The 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.
