Witness Tells Court That Finance Ministry Cannot Identify Who Hacked Them and Took Shs60 Bn

The Ministry of Finance does not know who hacked into its systems and diverted about 60 billion shillings meant to service Uganda’s foreign debt obligations, the Anti-Corruption Court has heard.

The revelation was made by the Ministry’s outgoing Undersecretary and Accounting Officer, Dr Edward Ssengozi Damulira, who testified on Thursday as the prosecution’s first witness in the trial of nine former ministry officials accused of involvement in the alleged theft.

Damulira told court that the ministry did not hold any internal meeting to investigate the alleged hacking, explaining that security agencies took over investigations after the incident was reported.

He said the funds involved were under Vote 130, which was supervised by the Permanent Secretary and Secretary to the Treasury. Damulira also told court that although he authorised the release of funds for upgrading the ministry’s financial management systems, he did not personally follow up on the alleged loss.

During cross-examination, defence lawyers asked Damulira whether, in his capacity as the ministry’s chief administrator, he had ever seen evidence linking the accused persons to money allegedly received from Roadway Limited.

He responded that he had not seen any such evidence. Damulira has since been appointed Clerk.

The nine accused, including Accountant General Lawrence Ssemakula, are facing 20 charges arising from the alleged diversion of funds intended to meet Uganda’s international debt obligations.

Prosecution alleges that approximately 6.13 million US dollars meant for the International Development Association (IDA), a World Bank institution, was transferred to Roadway Company Limited in Japan.

Another 8.59 million US dollars, reportedly intended for the African Development Fund under the African Development Bank, was allegedly paid to MJS International in the United Kingdom.

The alleged theft followed an upgrade of the Ministry of Finance’s Programme Budgeting System, Integrated Financial Management System and Electronic Government Procurement System.

Of the funds involved, about 53 billion shillings was reportedly meant to service Uganda’s international loan obligations.