Uganda court hears Shs60bn bank fraud trial
Nine finance officials face charges over alleged diversion of $14 million to foreign firms.
The trial of nine finance ministry officials accused of diverting over $14 million (about Shs 60 billion) to foreign companies began at the Anti-Corruption court in Kampala on Tuesday. Prosecutors allege the officials manipulated payment files from the Integrated Financial Management System (IFMS) in March 2024, sending funds meant for the World Bank Group and the African Development Bank to unintended recipients.
Those charged include former Accountant General Lawrence Ssemakula and IT systems officer Paul Nkalubo Lumala. Investigators claim payment instructions were altered before reaching the Bank of Uganda. The first prosecution witness, Dr Edward Ssengozi Damulira, the ministry's under secretary, testified that Shs 13 billion in supplementary funding was released in the 2022/2023 financial year for system upgrades.
Damulira stated the ministry had requested Shs 26 billion to upgrade the IFMS. The upgrade covered the Programme Budgeting System, IFMS, and the Electronic Government Procurement System. Minutes from a November 4, 2022, meeting showed the Accountant General recommended continuous user training after the upgrades.
Why it mattersNine finance ministry officials are on trial for allegedly defrauding the government of Shs 60 billion through manipulated payment systems.