Ugandan finance ministry officials charged with corruption, money laundering

A Ugandan court has charged eight finance ministry officials with corruption, electronic fraud and money laundering from a hacking incident on the central bank’s systems that led to the loss of at least $21m (R387.4m), court documents showed.

The hacking occurred last year and involved redirecting of some payments from its intended beneficiary to different recipients, according to the charges read in a magistrate’s court in the capital Kampala late on Thursday.

In November last year, state minister for finance Henry Musasizi confirmed reports in local media that the central bank’s accounts had been hacked and money stolen. Some of the money was meant for the International Development Association (IDA), an arm of the World Bank, as principal and interest repayments for loans given to Uganda, but was instead redirected to two companies in Japan and Poland, according to the charge sheet.

Some of the money was also illegally paid out from the central bank to a company in London, the charge sheet said.

The officials, who include the ministry’s top accountant, were charged with corruption, causing financial loss, electronic fraud, money laundering and abuse of office for their various roles in the theft, according to the charge sheet.

One of the officials, an information technology officer at the ministry, “irregularly altered the payment instructions” for a part of the money that was supposed to go IDA and instead redirected it to a company in Tokyo, Japan, the sheet said.

The top accountant, according to the charge sheet, “neglected to put in place effective systems to safeguard public funds which resulted into a financial loss“.

The officials were not allowed to enter a plea as the offences are triable in the high court. They were remanded to prison until February 18 when they will reappear for a mention of their case.

One of the suspects’ lawyers, Max Mutabingwa, tried to apply for bail for the suspects but his request was denied.

Source: timeslive.co.za

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.