The Bank of Uganda (BoU) has confirmed that two incidents of fraudulent activity, involving international payments being diverted, were processed from within its systems.
In a statement released Monday, the central bank acknowledged the breaches and detailed ongoing efforts to investigate and address the situation.
“The Bank of Uganda (BoU) is aware of recent media reports regarding two incidents involving fraudulent activity that resulted in international payments being diverted from their intended beneficiaries,” said Kenneth Egesa, BoU’s Director of Communications and Public Relations.
Egesa added, “We immediately launched a comprehensive internal investigation to fully understand the complete extent of these incidents, conduct a thorough process review, and identify and implement steps to prevent similar occurrences in the future.”
The BoU confirmed it is working closely with authorities, including the Criminal Investigations Directorate of the Uganda Police Force, the Financial Intelligence Authority, and the Office of the Auditor General, to uncover how the payments were initiated and processed internally.
“We anticipate that the investigative findings will comprehensively clarify the details of how these payments were initiated and processed through the BoU,” the statement noted.
Sources said a team of forensic investigators were focusing on a group of BoU staff in the payments, audit and procurement offices.
“We suspect complicity of several internal staff,” said a source who is updated on the matter.
IT officer probed
One of the officials being investigated in the case is an IT and compliance officer identified as Ronald Ogwal, who has worked in the departments of Procurement, Treasury Operations and Information Technology.
“The investigation is soon coming to an end but we are looking at people who procured and installed the payment system and firewalls; people who manage payments and the auditors,” the source observed, adding, “There is reason to believe these officers colluded in this fraud.”
BoU’s revelation follows earlier comments by Henry Musasizi, the Minister of State for Finance, who told Parliament last week that there had been a breach but denied media reports claiming Shs62 billion was stolen. “It is true there was a breach, but the amount reported in the media is not accurate,” Musasizi stated.
Joel Ssenyonyi, Leader of the Opposition in Parliament, had raised alarms over the breach. “When the network firewall of the Central Bank is penetrated, it is something that gets to worry all of us. Monies are being siphoned, whether it be by hackers or staff. The government shouldn’t continue being quiet about this matter. We want to know what exactly is happening at our Central Bank,” he said.
The BoU assured the public of its commitment to transparency and integrity, stating, “Our commitment remains unwavering: to maintain the highest standards of institutional integrity and transparency.” A detailed public update will be provided once investigations conclude.
The confirmation that the fraudulent payments were processed internally has heightened concerns over the security and oversight of the central bank, with increasing calls for reforms to safeguard Uganda’s financial institutions from future breaches.
