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BoU, Finance in blame game as IT staff grilled over money heist
Bank of Uganda’s Deputy Governor, Mr Michael Atingi-Ego (inset). Photos | File
What you need to know:
- Kyadondo East legislator, Mr Muwadda Nkunyingi, expressed frustration that both the Finance Ministry and the Central Bank were denying responsibility despite being directly involved in the transactions.
The Accountant General, Mr Lawrence Semakula, has defended his office against claims by the Central Bank, which suggests that the Ministry of Finance was responsible for authorising and clearing transactions that led to Uganda losing at least Shs50 billion of taxpayers' money under questionable circumstances. The matter is currently under investigation by the House Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE).
In his response to allegations made by the Deputy Governor of the Bank of Uganda (BoU), Mr Michael Atingi-Ego, on Tuesday evening, Mr Semakula argued before legislators that his office could not have made payments to Broadway Company Limited and MJS International, as these companies are not registered on the government’s payment system.
“For us when we look at our application process, everything is okay. Even now, if you go to the system [and check] we don’t have Roadway [Company Limited], we don’t have it in the system as a supplier [of any service to be paid]. So let’s wait [for the forensic audit] and see what exactly could have happened,” Mr Semakula said.
However, he refrained from naming the individuals responsible for authorising the release of the funds, which were meant to settle loans from the World Bank and African Development Bank (ADB).
“This forensic audit, being conducted by the Auditor General, should clarify what happened. I believe once the investigation is complete, we will have answers,” he told the committee.
BoU staff names mentioned
Shortly after officials from the Accountant General’s office exited, Central Bank staff were called in to respond to the Ministry of Finance’s statements. Kyadondo East legislator, Mr Muwadda Nkunyingi, expressed frustration that both the Finance Ministry and the Central Bank were denying responsibility despite being directly involved in the transactions.
“But Chair, it is concerning that we invited them not just yesterday but also today to respond to issues related to these transactions. They come here, and probably they don’t even have answers but offer us a narrative without evidence. I find this intentional,” Mr Muwadda remarked.
To compel the Bank of Uganda officials to name specific staff involved in the loss, Mr Muwadda suggested that BoU’s top management be arrested to force them to provide critical information.
“I would recommend you hand them over to the CID. They can go and retrieve these documents related to this money heist,” Mr Muwadda said.
In response, Mr Atingi-Ego ordered the Acting Executive Director of Information Technology at BoU, Mr Edward Mugerwa, to prepare a defense.
The committee then interrogated IT department officials regarding the Managed File Transfer (MFT) system, which Mr Atingi-Ego had blamed on Tuesday for authorising the payment of Shs50 billion to the wrong accounts.
IT staff named
Mr Mugerwa identified some IT staff members involved in the system, including Mr Andrew Omara and Mr Andrew Ebine, who have both been questioned by the Criminal Investigations Department (CID). Mugerwa also revealed that two investigation reports on the matter had already been written and submitted to relevant authorities.
He then invited Ms Claire Athieno, who disclosed that emails confirming the transactions involving the release of part of the Shs50 billion were authored by Ms Eunice Kahimakazi from the banking department.
Before the committee could press for further details from the Bank of Uganda officials, Mr Medard Sseggona, the chairperson, paused the proceedings for an hour and a half to allow BoU staff time to produce documents showing the communications exchanged with other stakeholders about the financial loss.
When the session resumed, the committee pressed BoU staff for answers regarding the specific individuals responsible for the transactions that led to the loss. However, the BoU officials requested to share those details in a closed-door session, a request which Mr Sseggona granted.
“The detailed IT security concerns of the Central Bank are not information that should be made public. The controls we have in place are sensitive, and disclosing them publicly could expose our IT systems," Mugerwa said.
The committee agreed to this request and removed journalists from the session.
