Eight officials from Uganda’s Ministry of Finance have been charged with a range of offences, including corruption, electronic fraud, and money laundering, in connection with a major hacking incident that resulted in the loss of at least $21 million.
The charges, presented to a magistrate’s court in Kampala on Thursday February 6, relate to the unlawful diversion of funds from the Bank of Uganda’s systems. The funds, which were intended for repayments to the International Development Association (IDA), were illegally rerouted to entities in Japan, Poland, and the UK.
The hack occurred last year when the payment instructions for certain transactions were altered, leading to the misdirected funds. Among those charged is the Ministry’s top accountant, who is accused of failing to implement proper safeguards for public finances, and an IT officer who allegedly manipulated the payment instructions. Some of the misappropriated funds were meant for loan repayments to the World Bank’s IDA, which provides financial aid to Uganda, while others were diverted to various companies, including a Japanese firm in Tokyo and a company based in London.
The accused officials, who were not permitted to enter a plea as the charges are considered serious and will be tried in Uganda’s High Court, have been remanded to prison. The case has drawn attention to the vulnerabilities in Uganda’s financial systems, with the authorities emphasizing the need for tighter control mechanisms. The suspects are set to appear again in court on February 18 for a mention of their case. The charges highlight ongoing concerns about corruption within Uganda’s financial sector and the need for greater accountability.