Eye Media Reporter | 2 July 2026

KAMPALA – The State House Anti-Corruption Unit (SH-ACU) has arrested a former Kamuli District Engineer over his alleged role in the misappropriation of more than Shs600 million that had been allocated for road construction and rehabilitation in the district.

The suspect, Eng. Mufumba Daniel, was arrested on Thursday morning in Mbale City, where he had reportedly transferred after leaving Kamuli while investigations into the alleged fraud were ongoing.

According to a statement issued by the Minister in charge of Local Government, Barugahara Balaam Ateenyi, the alleged fraud dates back to the 2025/2026 financial year, when more than Shs600 million earmarked for road works was allegedly diverted through fraudulent payments.

The minister said he first alerted the State House Anti-Corruption Unit in January 2026 after receiving information suggesting that the funds had been fraudulently processed.

Investigations reportedly pointed to a scheme involving the then Chief Administrative Officer (CAO), Mukiibi Nasser, Chief Finance Officer (CFO), Kifuuse Alex, and District Engineer Mufumba Daniel.

According to the minister, the money was allegedly channelled through Raven Knights Ltd, a company whose registered directors are said to be the engineer’s sister and brother-in-law, but which investigators believe was under the engineer’s control.

Authorities allege that the engineer requisitioned payment for road construction and rehabilitation projects that were never undertaken. The CAO and CFO are accused of approving the payments despite the alleged absence of any completed works.

Investigators further claim that part of the money paid to the company was transferred directly to the engineer to execute the projects, but the roads were never constructed or rehabilitated.

Following the launch of investigations, the CAO and CFO were arrested. However, the district engineer allegedly went into hiding after seeking a transfer from Kamuli District to Mbale City.

Although Kamuli District initially declined to release him because of the ongoing investigations, the transfer was eventually effected following court proceedings.

The minister added that the engineer’s sister and brother-in-law, who are linked to Raven Knights Ltd, also disappeared, with their known telephone contacts becoming unreachable.

The State House Anti-Corruption Unit said it tracked down and arrested the engineer in Mbale following intelligence-led operations. He is expected to be arraigned before court to answer charges related to the alleged embezzlement.

Barugahara praised the Head of the State House Anti-Corruption Unit, Brig. Gen. Henry Isoke, and his team for what he described as professionalism, persistence and dedication in pursuing corruption cases.

He also commended other security agencies that participated in the operation, saying their collaboration ensured the suspect was apprehended.

“The fight against corruption is gaining momentum. No one is above the law, and those who steal public resources meant to improve the lives of Ugandans will be held accountable,” the minister said.

He reiterated the government’s anti-corruption campaign under President Yoweri Kaguta Museveni, quoting the President’s rallying call: “Kisanja, no more sleep, no more corruption.”

The arrest is the latest in a series of anti-corruption operations targeting public officials accused of misappropriating government funds intended for service delivery.

The suspect is expected to appear before court in the coming days. However, under Ugandan law, all accused persons are presumed innocent until proven guilty by a competent court of law.

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