The trial of nine Ministry of Finance officials, including former Accountant General Lawrence Ssemakula, over the alleged diversion of billions of shillings in public funds is scheduled to begin on November 10, 2026, before the Anti-Corruption Court in Kampala. Justice David Makumbi set November 9 for a preliminary hearing, with the substantive trial expected to run from November 10 to 12 after all nine accused persons denied the charges against them.
The defence told the court that the prosecution should prove its case through evidence presented during the trial, declining to concede any facts or documents that the state intends to rely on. Defence lawyer Mwesigwa Rukutana said his clients were ready to proceed to trial but opposed the prosecution’s request for a preliminary hearing to identify facts and documents that could be agreed upon before the substantive proceedings.
Rukutana maintained that the prosecution should prove every element of the charges rather than rely on agreements with the defence. However, Chief State Attorney Richard Birivumbuka, assisted by Thomas Jatiko from the Office of the Director of Public Prosecutions (ODPP), asked the court to allow the preliminary hearing, saying the prosecution had already disclosed the evidence and material facts it intended to rely on.
Birivumbuka said the process would help identify matters that are not in dispute and enable the parties to focus on contested issues during the trial. In his guidance, Justice Makumbi acknowledged the accused persons’ right to challenge the prosecution’s evidence but cautioned that insisting on formal proof of every document could delay the proceedings. The judge observed that some matters, including the employment status of the accused, might not require lengthy proof if the parties reached an agreement.
He said the preliminary hearing was intended to narrow the issues for determination and allow the court to concentrate on disputed evidence. Justice Makumbi directed the prosecution to be ready to open its case on November 9 if the parties failed to agree on any facts or documents. He also urged defence lawyers to ensure they are available throughout the proceedings to minimise unnecessary adjournments.
The judge further reminded the accused that they could explore plea bargaining through their lawyers before the preliminary hearing. The nine officials face charges arising from allegations that government payment systems were manipulated to divert funds intended for repayment of loans to international financial institutions.
The accused are Ssemakula; Jennifer Muhuruzi; Paul Nkalubo Lumala, a systems IT officer; Deborah Dorothy Kusiima, a senior accountant in the Treasury Services Department; Judith Ashaba, an accountant; Bettina Nayebare, a research assistant; Mark Kasiiku, an IT systems officer; Tonny Yawe, an IT senior officer; and Pedison Twesigomwe, an assistant commissioner for accounts at the Ministry of Finance.
The prosecution alleges that loan repayments to the International Development Association (IDA), part of the World Bank Group, and the African Development Fund, the concessional lending arm of the African Development Bank, were fraudulently diverted to foreign companies. Court documents indicate that payments made on September 12 and September 30, 2024, totalling more than US$14 million, equivalent to approximately Shs52 billion at the time, were allegedly redirected to foreign entities, including Roadway Company Limited in Tokyo, Japan, and MJS International in London.
According to the prosecution, electronic payment files generated through the Integrated Financial Management System were altered before being encrypted and transmitted to the Bank of Uganda. Investigators allege that Linux executable scripts were inserted into the system to change the intended beneficiaries’ details to those of foreign entities.
The prosecution is expected to rely on forensic and information technology audit reports, including evidence that administrator-level access was allegedly used to manipulate payment files. Investigators further allege that email communications from the Bank of Uganda concerning reconciliation were intercepted and altered to conceal the transactions, while server logs were deleted to remove evidence of changes to payment instructions.
The prosecution also alleges that false reconciliation reports were prepared to make it appear that the intended international lenders had received their money. In one instance, more than US$6.6 million allegedly destined for an entity in Poland was intercepted and blocked by the SWIFT messaging system after the World Bank raised a complaint over non-payment of a loan instalment.
The prosecution further contends that Ssemakula and Muhuruzi failed to take corrective measures or initiate disciplinary action despite receiving an internal Bank of Uganda inquiry report highlighting irregularities, allegedly allowing subsequent fraudulent transactions to occur.
The Bank of Uganda reportedly recovered more than US$8.2 million from one of the transfers to MJS International. However, more than US$6.1 million allegedly transferred to Roadway Company Limited, and another US$391,720 remain unrecovered, according to the prosecution. The alleged fraud was initially described as a cyberattack on the Bank of Uganda but was later determined by investigators to have involved internal manipulation of payment systems rather than an external intrusion.
Following the discovery, the Criminal Investigations Directorate, working with Defence Intelligence and Security, investigated staff from the Bank of Uganda, the Ministry of Finance and the Accountant General’s Office. By the end of 2024, at least 21 staff members from the three institutions had reportedly been interrogated, while their mobile phones and laptops underwent forensic examination.
Investigators also pursued efforts to trace funds transferred to foreign accounts, including in the United Kingdom and Asian countries. The prosecution alleges that more than half of the approximately Shs60 billion involved in the wider suspected fraud was recovered through engagements with banks in the United Kingdom, while efforts to recover money transferred to Asian countries were less successful.
Investigators are also pursuing allegations that some of the money sent to Asian countries may have been withdrawn and returned to beneficiaries in Uganda in the form of cash or goods. The case dates back to 2024, when the officials were initially charged with 11 counts involving corruption, abuse of office and causing financial loss.
Eight additional counts, including money laundering and electronic fraud, were subsequently added, bringing the total number of charges to 19. In March 2026, the Magistrates Court committed the accused to the High Court for trial after the Director of Public Prosecutions sanctioned fresh charges. The prosecution alleges that failures by officials in the Accountant General’s Office and Treasury Services Department to establish effective safeguards for public funds enabled the diversion of the loan repayments. The nine officials have denied the charges, and the allegations remain to be tested in court-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
