Eight senior officials from Uganda’s Ministry of Finance have been charged with corruption, electronic fraud, and money laundering following a hacking incident that led to the loss of at least $21 million from the country’s central bank. This development was reported by Reuters, citing court documents presented in Kampala on Thursday.
Central bank hacked, funds redirected abroad
The hacking, which occurred late last year, involved the manipulation of the central bank’s payment systems, allowing funds to be diverted from their intended recipients to foreign companies. According to the charge sheet, payments meant for the International Development Association (IDA), a branch of the World Bank, were instead redirected to companies based in Japan and Poland.
Additional funds were illegally transferred to a company in London, further highlighting the international scope of the fraud.
Finance ministry officials accused of negligence and fraud
The accused officials include the ministry’s top accountant and an information technology officer. The IT officer is alleged to have ‘irregularly altered payment instructions,’ diverting funds meant for loan repayments to a company in Tokyo. The top accountant faces charges of neglecting to implement effective safeguards to protect public funds, contributing to the substantial financial loss.
The charge sheet details allegations of corruption, causing financial loss, electronic fraud, money laundering, and abuse of office, reflecting the severity of the case.
Court proceedings and denied bail
The suspects appeared before a magistrate’s court in Kampala but were not permitted to enter pleas, as the charges will be tried in the high court. The presiding judge denied a bail request made by defence lawyer Max Mutabingwa, ordering the officials to remain in custody until their next court appearance scheduled for February 18.
This case has raised significant concerns about cybersecurity vulnerabilities within Uganda’s financial systems and the need for stronger safeguards to prevent similar incidents in the future.
Credit: Reuters
