The recent revelation that Shs60 billion was paid to unknown individuals has sent shockwaves through Uganda’s financial sector, leading to the arrest of nine Ministry of Finance officials.
While investigations are ongoing, emerging details suggest deep-rooted systemic flaws between the Ministry of Finance and the Bank of Uganda, raising concerns about accountability and oversight in the country’s financial management systems.
The Role of the Management Information System
At the heart of the scandal is the Management Information System (MIS), which falls directly under the Accountant General.
The system, designed to streamline financial transactions and ensure transparency, appears to have been exploited or bypassed in this case by either carelessness of the responsible officers at the treasury or their own inaction. This raises urgent questions about its security measures and oversight mechanisms.
Notably, prior to the breach, our sources indicated the Ministry had allocated huge sums of money to enhance system security, with an improvement plan spanning six months. Its however embarrassing and indeed raises many questions timing of the hack, occurring during this upgrade window. ,This underscores potential vulnerabilities and lapses in implementation by the responsible officers under the supervisor of the embattled Accountant General Mr.Lawrence Ssemakula.
Human Resource Overhaul in the Ministry of Finance
One of the quick measures undertaken by PSST Ramathan Ggobi is the restructuring of the Human Resource Office under the Accountant General, placing it under the Finance and Administration department.
It is said that while the Ministry’s Human Resource Office initially falls under the Finance and Administration, the Accountant General’s Office had established its parallel structure of Human Resource under its direct control.
It is said that the new move aims to enhance oversight and efficiency, reducing vulnerabilities that may have contributed to past financial mismanagement.
The Shs60 billion scandal is a stark reminder of the urgent need for transparency, accountability, and reform within Uganda’s financial institutions.
While investigations continue, it is evident that both the Ministry of Finance and the Bank of Uganda must take collective responsibility for strengthening financial oversight mechanisms.
The nation now awaits the outcomes of the ongoing probes and the measures that will be put in place to prevent such occurrences in the future.
Allegations of targeted prosecutions.
Contrary to speculations on various social media platforms, our sources at CID Headquarters at Kibuli indicate that the investigations which began in September, 2024 have left no body unquestioned.
Starting Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggobi, Deputy Governor Mr. Micheal Atingi-Ego To the lowest treasury official who have a connection to the payment processes have all recorded multiple statements at CID authorities to uncover the truth behind the scandal.
Only those found to have a direct involvement have been zeroed on so far as further scrutiny on the rest ensues.
Recognizing the gravity of the issue, Ggobi has taken proactive steps, including appointing a tentative new team to manage treasury functions until the appointing authority takes further action.
This is to ensure that Government operations are not hindered by the absence of officers facing prosecution.
The selection process for this acting team is said to be based on merit and experience to ensure that qualified professionals are at the helm during this critical period.
Given that the treasury plays a pivotal role in the economy, ensuring its stability is paramount to Uganda’s financial health.
The Bank of Uganda’s Role in the Payment System
According to our sources, the payment system is not solely managed by the Ministry of Finance—it is a syndicated process involving the Bank of Uganda (BoU).
This interdependence suggests that lapses in oversight may have occurred at multiple levels.
As indicated earlier, the Deputy Governor of the Bank of Uganda has also been summoned and has recorded statements with the Criminal Investigations Directorate (CID).
This emphasizes that this scandal extends beyond the Ministry of Finance.
Our sources indicate that, CID officials are investigating why despite BoU’s role in ensuring that no huge payments are made without confirmation with either a phone call or email with the Accountant General’s office, this particular transaction was quickly paid without confirmation.
This leaves many questions as to what next unfolds at BoU in the next chapter of investigations over the heist scandal that involves billions of the tax payers money.
Calls for Reform and Increased Accountability
In light of the scandal, experts argue that significant improvements are needed to close existing gaps in Uganda’s financial systems.
The syndication between the Ministry of Finance and the Bank of Uganda must be critically examined to ensure better safeguards against fraud.
Strengthening internal controls, enhancing audit procedures, and improving digital security within the Management Information System are essential reforms.
Parliament has also demanded explanations from the Ministry of Finance, Planning, and Economic Development regarding the circumstances under which such a substantial sum was misappropriated.
