Authorities yesterday conducted searches at the residences of nine senior finance ministry officials arrested on Tuesday over their alleged involvement in the UGX 6 billion Bank of Uganda (BOU) heist.
The operation aimed to gather crucial evidence to strengthen the case against the suspects as detectives work to ensure their court arraignment within the mandatory 48-hour window.
The arrested officials include Accountant General Lawrence Semakula, Principal Accountant Mubarak Nasamba, Commissioner Jennifer Muhuruzi, IT Systems Officer Paul Lumala, Accountant Bettina Nayebare, Senior IT Officer Tony Yawe, Senior Accountant Deborah Kusiima, Accountant Judith Ashaba, and IT Specialist Mark Kasiku.
Investigators carried out intensive searches at the suspects’ homes located in Bukoto, Buziga, Muyenga, and Lubowa in Kampala, as well as Kira and Gayaza-Nakwero in Wakiso District.
The searches were conducted under tight security, with law enforcement officers scouring for evidence, including financial records, electronic devices, and any documents that could link the suspects to the fraudulent transactions.
The operation has reportedly caused panic within the finance ministry, with several staff members failing to report to work yesterday.
Some employees are said to have switched off their phones amid reports that the Criminal Investigations Directorate (CID) is seeking additional suspects connected to the fraud. Several officials who had earlier been released on bond failed to report back to CID and are now believed to have gone into hiding.
Meanwhile, the ministry’s Permanent Secretary, Ramathan Ggoobi, urged calm among staff, assuring the public that the ministry is fully cooperating with investigating authorities and that its operations remain unaffected.
Ongoing Investigation and Charges
Investigators revealed that the arrested officials face multiple charges, including abuse of office, embezzlement, causing financial loss, and money laundering.
The arrests follow an Auditor General’s report implicating finance ministry officials in fraudulent transactions that led to significant financial losses for the government.
The report, compiled by Auditor General Edward Akol, detailed two suspicious payments totaling UGX 54 billion ($14.7 million).
The first payment of $6.1 million (UGX 22.6 billion), intended for the World Bank, was mistakenly wired to Roadway Company Limited in Japan. Efforts to recover the funds have so far been unsuccessful.
The second payment of $8.6 million (UGX 31.7 billion), meant for the African Development Bank (AfDB), was instead sent to MJS International in London.
While part of this money has been recovered, approximately $391,660 (UGX 1.4 billion) remains unaccounted for.
Evidence Seized and Digital Fraud Uncovered
During the home searches, forensic experts focused on recovering electronic devices, including computers and mobile phones, which could provide digital trails of the fraudulent transactions.
The Auditor General’s findings indicate that fraudulent activity was facilitated through compromised credentials of former ministry staff, unauthorized system access, and manipulation of financial records within the Integrated Financial Management System (IFMS).
Key evidence suggests that IT personnel at the finance ministry altered payment details before transmitting transactions to BOU.
Investigators established that user accounts belonging to officials, including Senior IT Officer Tony Yawe and IT Specialist Mark Kasiku, were used to bypass security protocols and redirect payments to fraudulent accounts.
Further scrutiny revealed that a former staff member’s email credentials remained active despite their departure in 2021.
This account was allegedly used to access the ministry’s financial communication systems, intercept bank statements, and manipulate payment approvals.
Next Steps in the Investigation
Authorities are expected to conduct additional searches and interrogations as they track down more suspects linked to the fraud.
The Auditor General has recommended urgent reforms within the finance ministry, including deactivating email accounts of former employees and strengthening cybersecurity measures to prevent unauthorized access to financial systems.
The arrested officials remain in custody as detectives expedite their investigations ahead of their court appearance.
