In a significant legal development, a Ugandan court has filed charges against nine senior officials from the Ministry of Finance, Planning, and Economic Development. These charges stem from their alleged involvement in a sophisticated hacking operation targeting the central bank, resulting in a financial loss of at least $21 million. The charges include corruption, electronic fraud, and money laundering.
The hacking incident, which transpired last year, involved redirecting funds intended for specific beneficiaries to various unauthorized recipients. According to reports from a magistrate’s court session in Kampala, the State Minister for Finance, Henry Musasizi, acknowledged the breach. The Bank of Uganda is currently awaiting further results from a police investigation. At the time of the incident, offshore hackers allegedly extracted 62 billion Ugandan shillings (approximately $16.8 million) from the central bank (CNBC Africa).
Those charged include high-ranking officials such as Lawrence Semakula, the Accountant General, Jennifer Muhuruzi, the acting director of Treasury Services and Asset Management, and several IT professionals responsible for maintaining financial systems. An arrest was made on February 5, following an investigation into their involvement in the hacking activities (New Vision).
The formal charges filed consist of numerous counts, including five corruption charges, two related to financial loss, one charge of abuse of office, two charges of electronic fraud, and one count of money laundering. These charges are enforced under Uganda’s Anti-Corruption Act as well as the Computer Misuse Act.
According to court records, funds meant for the International Development Association, a World Bank affiliate, and the African Development Bank were illicitly redirected to companies in Japan, Poland, and the UK. For instance, a $6.134 million debt servicing payment meant for the World Bank ended up at a Japanese company’s account at MFUFG Bank, while $8.569 million intended for the African Development Bank was routed to a company in London (World Bank).
The judicial proceedings have not yet allowed for pleas on the charges related to money laundering, as these are only triable by the High Court in Uganda. Attorney Max Mutabingwa, representing one of the suspects, unsuccessfully attempted to secure bail for his client, and the suspects remain in custody, pending further proceedings slated for February 18 (Chimp Reports).
This incident sheds light on the vulnerabilities within Uganda’s financial systems and highlights the critical need for robust cyber-security measures to safeguard essential national financial assets.
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