Nine senior officials from the Ministry of Finance have been formally charged with 11 counts, including money laundering, electronic fraud, causing financial loss, abuse of office, and corruption, in connection with the misappropriation of Shs60 billion from the Bank of Uganda.
The Anti-Corruption Court in Kampala remanded the accused following their arrest on Tuesday, marking a significant development in a case that had initially failed to prompt decisive action despite the Bank of Uganda’s acknowledgment of fraudulent activities.
The charges stem from an extensive financial scheme involving the diversion of public funds meant for international debt servicing.
Key Accused Officials and Court Proceedings
Among the accused individuals is the Accountant General, Mr. Lawrence Ssemakula, who, along with eight others, appeared before Chief Magistrate Racheal Nakyazze on Thursday.
The prosecution named the co-accused as Mr. Paul Lumala, Ms. Jennifer Muhulizi, Mr. Mubarak Nsamba, Mr. Mark Kasuku, Mr. Tony Yawe, Ms. Deborah Kusiima, Ms. Betinah Nayebare, and Ms. Judith Ashaba.
The prosecution presented evidence alleging that the accused officials misappropriated substantial amounts of money designated for repaying debts owed to the World Bank and the African Development Fund. Instead of transferring these funds to their rightful recipients, the officials are said to have redirected them to private bank accounts in the United Kingdom and Japan.
Diversion of Debt Repayments to Foreign Accounts
Court documents reveal that on November 12, a sum of $6.134 million, originally allocated for servicing debt owed to the World Bank, was fraudulently transferred to Road Way Company in Japan.
The funds were subsequently deposited into an account at MFUFG Bank. Similarly, on September 28, a payment of $8.569 million, which was intended for the African Development Bank, was diverted to NJS International, a company based in London.
The prosecution argued that these transactions were orchestrated by the accused individuals, who manipulated financial systems to reroute the funds for their personal benefit.
Evasion of Court and Additional Allegations
The prosecution also sought a criminal summons for Mr. Pedison Twesigomwe, another suspect in the case, alleging that he had deliberately evaded appearing before the court.
Further allegations were made against Mr. Ssemakula and Ms. Muhulizi, who, according to the prosecution, failed in their duty to safeguard public funds, thereby facilitating fraudulent transactions.
Additionally, Mr. Yawe was accused of exploiting internal financial systems to divert $6 million intended for the African Development Bank.
Other suspects, including Mr. Twesigomwe, Ms. Kusiima, and Mr. Nkalubo, were charged with concealing the fraudulent payment made to Road Way Company.
The prosecution contended that their involvement in covering up the transactions amounted to corruption and money laundering.
Investigation Still Ongoing
With investigations still underway, the prosecution requested an adjournment to allow for the gathering of further evidence.
Officials have not yet disclosed the full extent of the financial mismanagement, but sources close to the investigation indicate that additional individuals may be implicated as inquiries progress.
Legal Disputes and Jurisdictional Challenges
During the court session, the defence team, led by prominent lawyers Mr. Peter Kabatsi and Mr. Bruce Musinguzi, raised concerns regarding procedural irregularities.
They argued that their clients had not been provided with a summary of the charges before plea-taking, an omission they claimed was a violation of due process.
Furthermore, the defence sought bail for the accused individuals.
However, Chief Magistrate Nakyazze ruled that the court lacked the jurisdiction to handle money laundering charges, which are classified as capital offences and fall under the purview of the High Court.
The defence team challenged this ruling, questioning why suspects who were not directly charged with money laundering were also denied the opportunity to enter a plea.
The prosecution countered by asserting that the most serious charge in the case—money laundering—took precedence over the others, necessitating the remand of all accused individuals.
Court Remand and Future Proceedings
Following the legal arguments, Magistrate Nakyazze ordered the remand of all accused persons until February 18, when the case will be mentioned again.
The accused will remain in custody as the court awaits further developments in the investigation.
This case has drawn significant public interest, given the scale of the alleged financial mismanagement and the involvement of high-ranking government officials.
As the legal process unfolds, further revelations may emerge regarding the extent of corruption within the Ministry of Finance.
