The Ministry of Finance has swiftly moved to restructure its leadership following the indictment of nine senior officials on corruption-related charges.
In a significant appointment, Godfrey Ssemugooma, the Director of Financial Management Services, has been named Acting Accountant General, taking over from embattled Lawrence Semakula, who was among those charged last week at the Anti-Corruption Court.
The charges stem from allegations that the accused officials manipulated payment systems, causing a UGX 60 billion loss to the government through fraudulent transactions.
The scandal has rocked the ministry, prompting urgent administrative changes to maintain operational stability and public trust.
Leadership Changes in the Wake of Corruption Allegations
Following the arrests, Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, took decisive action by interdicting the implicated officials.
In a statement, he cited the need for an impartial investigation and emphasized that those charged must step aside in accordance with the Public Service Standing Orders.
“Considering the gravity of the alleged offences against you and in line with Section F-s (8) of the Uganda Public Service Standing Orders, I have decided to interdict you from duty with immediate effect to pave way for investigations to take place unhindered,” read a letter issued to one of the accused officials.
As part of the restructuring, Stephen Ojambo has been appointed Commissioner for Treasury Services, replacing Jennifer Muhuruzi, while Barbara Nakintu has taken over as Assistant Commissioner of Accounts, replacing Pedson Twesigomwe.
The changes are seen as an attempt to restore confidence in the ministry following reports that the corruption scandal disrupted its operations.
However, Ggoobi reassured the public that essential services remain functional despite the arrests.
Godfrey Ssemugooma: A Strategic Appointment in a Critical Time
Godfrey Ssemugooma’s appointment is viewed as a crucial step in restoring financial accountability within the ministry.
A seasoned financial expert with extensive experience in public financial management, Ssemugooma has previously spearheaded efforts to improve government accounting systems and enhance transparency in financial transactions.
His leadership comes at a time when the ministry faces heightened scrutiny, not only due to the ongoing investigation but also in light of a confidential Auditor General’s report, which implicated more than 20 finance officials in the scandal.
Ssemugooma’s primary task will be to overhaul financial controls within the ministry, ensuring that loopholes exploited for fraudulent activities are closed. He is also expected to cooperate with investigators as they probe the extent of financial mismanagement uncovered in the scandal.
The Charges and Allegations
The nine interdicted officials, including former Accountant General Lawrence Semakula, are facing 11 counts of financial crimes before Chief Magistrate Racheal Nakyazze at the Anti-Corruption Court in Kampala.
The prosecution alleges that Semakula and others diverted funds meant for debt repayments to the World Bank and African Development Fund, transferring the money into suspicious accounts in Japan and the UK.
Among the key allegations:
- $6.134 million (UGX 22.54 billion), which was meant for a World Bank debt servicing repayment, was instead sent to Road Way Company in Japan and deposited into an account at MFUFG Bank on November 12, 2023.
- $8 million (UGX 29.39 billion), intended for an African Development Fund repayment, was transferred to NJS International in London, UK, on September 28, 2023.
The accused officials, including IT specialists and accountants, are alleged to have conspired to alter transaction details and conceal fraudulent payments, acts that prosecution says amount to money laundering, corruption, electronic fraud, and abuse of office.
Trial and Next Steps
While most of the accused officials were present in court last week, Pedson Twesigomwe, the former Assistant Commissioner of Accounts, failed to appear and has been summoned to face charges on February 18, 2024, when the case will be mentioned again.
The prosecution has indicated that more arrests could follow, as the investigation expands to other officials who may have been involved in the fraudulent scheme.
In the meantime, Godfrey Ssemugooma and the newly appointed officials are expected to restore order and credibility within the Finance Ministry, ensuring that financial transactions are conducted transparently and in line with government regulations.
Ssemugooma’s appointment signals a shift in the government’s approach to tackling financial misconduct, reinforcing a commitment to clean governance and financial discipline. His leadership will be closely watched as the corruption trial unfolds.
