In a startling revelation that has rocked Uganda’s financial sector, nine senior Ministry of Finance officials have been arrested on charges including corruption, abuse of office, electronic fraud, and money laundering. This development comes in the wake of what has been dubbed the “Shs60 Billion Saga” at the Bank of Uganda (BoU), marking one of the largest financial scandals in recent Ugandan history.
The Incident:
The saga unfolded when over 60 billion Ugandan Shillings, approximately $16 million USD, were fraudulently transferred from BoU’s accounts. The transactions in question were supposed to be debt servicing payments to international institutions like the World Bank and the African Development Fund but were instead redirected to private accounts in Japan and the UK. The first payment, amounting to $6.134 million, was mistakenly sent to Road Way Company Limited in Japan on September 12, 2024, while a second payment of $8.596 million was misdirected to MJS International in London on September 20, 2024.
Investigations and Arrests:
The matter came to light after anomalies were flagged by the Ministry of Finance, prompting an internal investigation by BoU, which was then escalated to include the Uganda Police Force and the Financial Intelligence Authority (FIA). The Central Bank has since managed to recover $8.205 million of the misappropriated funds, but a shortfall of about $391,000 remains unrecovered.
The arrested officials, all from the Office of the Accountant General, were detained after responding to a Criminal Investigation Department (CID) summons. This operation was part of a broader probe into how such a significant amount could be diverted from state coffers. The Secretary to the Treasury, Ramathan Ggoobi, confirmed the arrests in a statement, emphasizing the government’s commitment to rooting out corruption.
Public and Political Reaction:
The scandal has ignited a public outcry, with many Ugandans expressing outrage over the mismanagement of public funds. On social media platforms like X, posts have been circulating, questioning the integrity of the financial system and calling for accountability at the highest levels.
Parliament has also taken a keen interest, with the Committee of Commissions, Statutory Authorities, and State Enterprises (COSASE) pressing BoU for answers on the incident and the broader issue of governance at the Central Bank, especially in the absence of a substantive Governor.
Bank of Uganda’s Response:
BoU’s Deputy Governor, Michael Atingi-Ego, has been at the forefront of defending the bank’s integrity, clarifying that the transactions were initiated outside BoU’s IT systems based on instructions received. He emphasized that no BoU staff have been implicated in the scandal thus far, focusing instead on the recovery of the funds and cooperation with investigative bodies.
Global Implications:
The incident has not only domestic repercussions but also international ones, as correspondent banks have raised concerns over the integrity of Uganda’s financial systems. This could potentially affect Uganda’s international financial relationships and its ability to secure loans or aid in the future.
Looking Forward:
As the legal proceedings against the accused officials commence, the nation watches closely. There is a pressing need for transparency in how the investigation will proceed and how the government plans to tighten financial controls to prevent future occurrences. The saga has also reignited debates on the need for a permanent Governor at BoU, with calls for leadership that can restore confidence in Uganda’s financial oversight.
This scandal serves as a stark reminder of the challenges of corruption and the imperative for stringent financial governance. As the story unfolds, it will be crucial to see how accountability is enforced and what reforms are introduced to safeguard Uganda’s economic stability.