Intern named in Shs170m UNRA fraud

UNRA executive director Allen Kagina (Centre) consults internal audit director Moses Kisakye (Left) while appearing before MPs on the Commissions, Statutory Authorities and State Enterprises Committee yesterday. PHOTO BY ERIC DOMINIC BUKENYA

What you need to know:

  • The intern and a UNRA accountant reportedly created a bogus account in a commercial bank through which they electronically wired the money.
  • Bukoto South MP Muyanja Mbabali advised ABC Bank to refund the money instead of waiting for a court order.

PARLIAMENT.

The Uganda National Roads Authority (UNRA) claims an intern was involved in a scam through which Shs173 million was spirited away from the roads agency in 2012.

UNRA officials told MPs on the Commissions, Statutory Authorities and State Enterprises Committee (Cosase) yesterday that an intern and UNRA accountant created a bogus account in a commercial bank through which they electronically wired the money.

The accused allegedly pulled off the plan by giving the impression that the account was for paying one of UNRA’s many suppliers.

UNRA director of legal services Mary Kuteesa said: “Trevor Tumwine, an accountant, and Alvin Arinaitwe, an intern in the account’s office, carried out payments as going to a supplier of fuel.”

“They created an account with ABC Bank with similar names of the supplier they were paying and did transfer money…”

Ms Kuteesa said this while appearing before Cosase together with other current and former UNRA officials to answer 2012 audit queries raised by Auditor General John Muwanga.

Ms Kuteesa said they have since applied to court to have the money that is still in ABC moved to the Consolidated Fund.

By the time UNRA detected the fraud in 2012, the account in ABC Bank had only Shs59 million left.

The queries
Police thereafter investigated the matter though it only arrested the bank’s officials, not the UNRA accountant and the intern.

They have since been arrested and are due to appear in court at the end of this month on fraud charges.
Cosase chairperson Abdu Katuntu questioned how the fraud could have occurred without the knowledge of UNRA officials.

“You had your staff opening bank accounts and you are paying them money? What happened?” Mr Katuntu asked.

The UNRA accounting officer in 2012, Mr Peter Ssebanakitta, said the accused “involved in cybercrime”,
“Some of these young, sharp graduates are more IT savvy than us [the old people],” Mr Ssebanakita said.

“What we suspect is that they could not have done it without the collusion of ABC Bank.”

He said though he was out of Uganda at the time the fraud happened, as soon as UNRA’s then director of finance Joseph Ssemugoma informed him, he directed him to report the matter to police and the Finance ministry. The suspects were arrested but were released after.

Bukoto South MP Muyanja Mbabali said ABC Bank should refund the money instead of waiting for a court order.

Ms Anita Among, the vice chairperson Cosase, said ABC Bank should have done due diligence on the accused as standard ‘know your customer’ practice. At an appropriate time, the committee will summon the bank managers to explain what happened.