KAMPALA - A former undersecretary at Uganda's finance ministry has told a court that the software used to manage public financial operations was hacked, leading to the loss of sh60 billion from the Bank of Uganda through fraudulent transactions. Dr Edward Sengonzi Damulira, who is now the Clerk to Parliament-designate, made the revelation while testifying in a high-profile corruption case.
System Breach Discovered
Damulira, who served as the accounting officer at the finance ministry, told the Anti-Corruption Division of the High Court that he became aware of the hack when he learned that the money had been diverted. However, he admitted that he could not determine whether the hackers were insiders within the ministry or external actors.
"I realised that the system had been hacked when I learnt that the money had been diverted," Damulira testified on Thursday, November 12, during cross-examination by defence lawyers led by Mwesigwa Rukutana.
Case Background
The case involves former Accountant General Lawrence Ssemakula and eight other finance ministry officials who are accused of orchestrating the theft of sh60 billion from the Bank of Uganda. They are facing charges of corruption, causing financial loss, money laundering, and electronic fraud. All accused have denied the charges.
The other accused are Jennifer Muhuruzi, former Commissioner for Treasury Services and Asset Management; Pedson Twesigomwe, an assistant commissioner for accounts; Tony Yawe, a senior information technology officer; Paul Nkalubo Lumala, an IT systems officer; Deborah Dorothy Kusiima, a senior accountant; Judith Ashaba, an accountant; Bettina Nayebare, a research assistant accountant; and Mark Kasiiku, an IT specialist.
IFMS Concerns Raised
During the hearing, Damulira told the court that finance ministry officials had raised concerns about the performance of the Integrated Financial Management System (IFMS), citing its failure to filter out junk email data and slow processing speeds. He also revealed that in 2024, following a malfunction in the emailing system, the ministry released an additional sh169 million to fund repairs to the IFMS, enabling it to remain operational for a further six months.
The case has been adjourned to January 25, 2027, for further hearing. Justice David Makumbi is presiding over the matter.
The alleged heist has raised serious questions about the security of Uganda's public financial management systems and the potential for insider collaboration in large-scale fraud. As the trial continues, all eyes will be on the court to see whether the prosecution can prove its case against the nine officials.
