Ugandan Finance Ministry Implements New Measures Following Treasury Fraud Scandal

Kampala, February 12, 2025 – The Ugandan Ministry of Finance has announced new measures to ensure business continuity and accountability in response to an ongoing fraud investigation involving the diversion of $16.87 million from the central bank. This follows the recent arrest and arraignment of nine officials implicated in the cyber fraud that targeted debt repayment funds.

As part of its response, the Ministry has taken decisive steps to maintain transparency and operational stability. In accordance with Section F-s of the Uganda Public Service Standing Orders 2021 and Regulation 38 of the Public Service Commission Regulations 2009, nine officials from the Accountant General’s Office were formally interdicted as of February 7, 2025. These officers, who have been charged in the Anti-Corruption Court, will remain suspended pending the conclusion of investigations and related court proceedings. The Ministry emphasized that this action reflects its strong commitment to accountability and adherence to procedural compliance while allowing due legal processes to unfold.

To ensure uninterrupted Treasury operations, the Ministry has reassigned key responsibilities. Senior Officer Godfrey Ssemugooma has been appointed as the Acting Accountant General, heading a team of senior officials tasked with maintaining the Ministry’s critical financial functions. Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, assured stakeholders that these internal adjustments would facilitate a smooth transition and continued stability within the Treasury. He urged the public, media, and both former and current ministry staff to support the investigative process and avoid misinformation or actions that could disrupt ongoing operations.

The scandal first came to light in November 2024, when hackers infiltrated the Bank of Uganda’s IT systems and illicitly transferred 62 billion Ugandan shillings (approximately $16.87 million). The funds, originally designated for debt repayments to the World Bank and the African Development Bank, were redirected to foreign accounts under fraudulent pretenses. Notably, $6.134 million intended for the World Bank was diverted to Road Way Company in Japan, deposited at MUFG Bank on November 12, 2024, while $8.569 million meant for the African Development Bank was redirected to NJS International in London on September 28, 2024.

Nine officials, including senior Treasury personnel, were arrested and charged with offenses such as money laundering, electronic fraud, corruption, and abuse of office. Among those implicated was Accountant General Lawrence Ssemakula. During their initial court appearance, Chief Magistrate Racheal Nakyazze ruled that the money laundering charges fall under the jurisdiction of the High Court, resulting in their remand until February 18, 2025.

In light of these developments, the Ministry has reaffirmed its dedication to upholding stringent financial oversight and governance measures. Ggoobi reiterated the Ministry’s commitment to emerging stronger from this crisis, reinforcing financial stewardship and safeguarding Uganda’s economic interests. The case continues to generate significant public and governmental scrutiny, with heightened calls for improved cybersecurity within the country’s financial institutions. Authorities remain focused on ensuring that those responsible are held accountable while implementing robust safeguards against future financial crimes.