The dispute centers around rent accumulated from several commercial properties owned by CMS and occupied by Dfcu Bank following its acquisition of Crane Bank assets in 2017.

CMS contends that Dfcu failed to meet its rental obligations for the properties, leading to a legal battle that has now escalated to the appellate level.

Last week, the High Court issued a stay of execution on a prior enforcement order that had directed DFCU to pay the outstanding arrears. The stay effectively delays CMS’s ability to recover the money until Dfcu’s appeal is heard and determined by the Court of Appeal.

In response to the development, Dr. Ruparelia, the Chairman of Ruparelia Group, expressed his resolve to pursue justice through the appellate court, stating that the recent ruling is only a temporary setback.

“It’s good they acknowledge it’s a temporary ‘victory.’ We shall battle at the Court of Appeal,” he said.

The case has drawn considerable attention from legal and financial circles given its implications on post-acquisition liabilities, especially in Uganda’s banking and real estate sectors.

The properties in dispute were part of Crane Bank’s portfolio before its takeover by Dfcu Bank, which was facilitated by the Bank of Uganda following regulatory concerns.

CMS maintains that Dfcu’s continued use of the properties without meeting the agreed rent obligations constitutes a breach of contract and that recovery of the UGX 8 billion is legally justified.

The initial court ruling favoured CMS and ordered payment, but Dfcu swiftly sought a stay of execution, which was granted pending appeal.

Legal observers suggest the appeal could set a significant precedent on matters involving commercial leases, asset transfers, and liability continuity after acquisitions.

With both parties expected to present extensive legal arguments, the case is poised to become a defining moment in Uganda’s corporate legal landscape.

While Dfcu Bank has yet to issue an official statement, Dr. Ruparelia remains confident that the Court of Appeal will uphold what he terms a rightful claim.

“We are ready for the Court of Appeal. Justice must prevail,” he remarked.

The business community, along with legal analysts, will be closely following proceedings as the matter unfolds in the appellate court.

The outcome is expected to have long-term ramifications for how commercial property rights are enforced in the context of institutional takeovers in Uganda.

The post “This Isn’t Over” – Tycoon Sudhir Prepares for Legal War in Billion-Shilling Rent Dispute appeared first on The Standard News (Uganda).

The directive was issued on March 19, 2025, during a meeting convened by the Zombo district security committee with financial money lenders at Paidha Town Council. The aim was to harmonize their relationship with the community through existing laws guiding their operations.

Addressing journalists after the meeting, Bruno Manano, the Assistant Resident District Commissioner (RDC) of Zombo, gave the money lenders a two-day ultimatum to return the confiscated identity cards.

“We have convened this meeting to ensure the money lenders return the confiscated national identity cards to their rightful owners. We are giving them until Friday to comply. People are unable to access services because their identity cards have been taken,” Manano said.

The Money Lenders Regulations, Statutory Instrument No.8 of 2018, explicitly prohibit the demand or acceptance of a national identity card or any other document establishing the identity or nationality of the holder as collateral for any loan.

Assistant RDC Manano also warned locals against depositing their identity cards as collateral for loans, emphasising that this unlawful practice prevents the community from accessing essential services like PDM funds, Emyooga, and more.

A section of leaders in Zombo has urged the government to intervene by regulating the interest rates charged by money lenders, to address consumer protection concerns and inflationary tendencies. Many licenced and unlicenced lenders impose exorbitant interest rates ranging from 10% to 30% per month.

Over the years, Uganda has seen remarkable growth in Savings and Credit Cooperative Organisations (SACCOs), commercial banks, and financial money lenders, which serve as vital financial service providers for individuals and communities.

In Zombo, more than 20 quick financial money lenders are spread throughout the community, offering loans with minimal red tape. Many of these financial money lenders, commonly known as “Now Now,” reportedly use clients’ identity cards as collateral for loans.

The issue arises when clients default on the loan repayment terms after depositing their national identity cards as collateral.

At the meeting, Robert Musinguzi, a representative from Agafi Finance in Paidha Town Council, acknowledged some progress and challenges in their business operations, urging locals to take back their national identity cards from their offices.

He pledged cooperation with the government and the community in carrying out their business activities in the area.

The money lenders claim that many clients are failing to reclaim their identity cards, but they have assured that the cards will be returned to their respective owners as directed.

The post Zombo Money Lenders Ordered to Return Clients’ Confiscated IDs appeared first on The Standard News (Uganda).

The fraud, allegedly executed by manipulating government payment systems, has been described as one of the most sophisticated financial crimes in recent years.

Justice Lawrence Gidudu presided over the bail hearing on Monday, where the six officials were released on bail amounts ranging between Shs 20 million and Shs 30 million. The court also imposed strict conditions, requiring each of their sureties to execute a non-cash bond between Shs 200 million and Shs 300 million.

The accused were further ordered to surrender their land titles and passports before being barred from accessing their respective offices. They must report to the court registrar starting April 3, 2025.

The six officials who secured temporary freedom are:

1. Lawrence Ssemakula – Accountant General, Ministry of Finance
2. Jennifer Muhuruzi – Acting Director of Treasury Services and Asset Management
3. Paul Nkalubo Lumala – IT Systems Officer
4. Deborah Dorothy Kusiima – Senior Accountant, Treasury Services Department
5. Judith Ashaba – Accountant
6. Bettina Nayebare – Research Assistant

Who Remains in Custody?

Justice Gidudu denied bail to Mark Kasiiku, an IT systems officer, and Tonny Yawe, a senior IT officer, citing their central roles in the fraudulent scheme.

Kasiiku is accused of using deception to facilitate the unlawful transfer of funds and allegedly concealing a $6.1 million payment to a company in Japan.

Yawe, on the other hand, is accused of altering critical payment instruction files in the government’s Electronic Funds Management Information System (EFMis), leading to the fraudulent diversion of funds.

The court ruled that both men should provide sufficient security if they wish to reapply for bail.

A ninth suspect, Pedison Twesigomwe, the assistant commissioner for accounts at the Ministry of Finance, had been charged two weeks earlier but did not apply for bail. He remains on remand alongside Kasiiku and Yawe.

How the Fraud Was Executed

Prosecutors allege that the fraud was carried out through manipulation of digital payment systems at the Ministry of Finance and the Bank of Uganda (BoU). According to the prosecution, IT officials exploited vulnerabilities in the EFMis system, allowing them to alter payment records.

One of the key allegations against Yawe is that he diverted funds intended for government projects by redirecting payments to a foreign company, Roadway Company Ltd in Poland. The payment, allegedly disguised as procurement for a recycling plant system and machinery, was later discovered to be fraudulent.

Investigators say that Ssemakula and Muhuruzi, both senior officials at the Ministry of Finance, failed to implement security measures to prevent such fraudulent transactions, leading to a financial loss of $652,588.2 (about Shs 2.5 billion).

The overall fraud, estimated at Shs 60 billion, reportedly involved a network of officials who facilitated the illegal transactions, either by altering records or covering up fraudulent payments.

Tracing the Stolen Money

Preliminary investigations revealed that the missing funds were withdrawn from the Bank of Uganda in September 2024 and funneled into multiple foreign accounts. The money was traced to several countries, including the United Kingdom, Japan, and other Asian nations.

Initially, investigators suspected an external cyberattack, but a forensic audit by the Criminal Investigations Directorate (CID) and Defence Intelligence and Security (DIS) (formerly Chieftaincy of Military Intelligence, CMI) later ruled out hacking. Instead, they concluded that the heist was an inside job, orchestrated by officials within government institutions.

Following a directive from President Yoweri Museveni, DIS intensified investigations, leading to the interrogation of at least 21 employees from BoU, the Ministry of Finance, and the Accountant General’s office. Their electronic devices, including mobile phones and laptops, were confiscated for forensic examination.

According to sources, BoU successfully recovered over half of the stolen funds through UK-based banks. However, efforts to reclaim the amounts transferred to Asian accounts were unsuccessful. Investigators suspect that some of the stolen money was either smuggled back into Uganda in cash or used to procure luxury goods and assets for the beneficiaries.

What’s Next?

With the trial set to continue, the prosecution is preparing to present evidence on 11 charges, including corruption, electronic fraud, causing financial loss, and money laundering. The accused officials face lengthy prison sentences if convicted.

Meanwhile, security agencies continue to widen the scope of the investigation, with sources suggesting that more officials could be implicated in the coming weeks.

The post Six Govt Officials Granted Bail in Shs 60Bn BoU Fraud Case appeared first on The Standard News (Uganda).

In February 2023, a shocking case of financial fraud hit Uganda’s banking sector when a group of individuals, including bank employees, orchestrated the unauthorized transfer of $1.8 million from a client’s account at Stanbic Bank Uganda.

Nine suspects were arrested and paraded before the Anti-Corruption Division in Kololo after an investigation by the Special Investigations Division, in collaboration with Stanbic Bank’s Fraud Department. The fraudsters had exploited weaknesses in the bank’s system to gain unauthorized access to the account of Nile Energy, a major client, and then transferred the funds into newly created bank accounts designed to facilitate the heist.

At the direction of certain branch managers, the stolen funds were withdrawn using forged documents, including a fake Kenyan passport and inter-account transfer forms in the name of Mohamed Abdul Hakim Hussein, a director and signatory of the compromised account.

The scheme involved a network of individuals, including a few Stanbic Bank employees at the Garden City and Freedom City branches. They manipulated the bank’s Inter-Account Transfer (IAT) system to siphon money into accounts under the names of Dixon Kagurusi Ampumuza, Petrom Limited, and Famane Investments Co. Ltd.

Using falsified paperwork, the suspects made at least seven cash withdrawals, with amounts ranging from $60,000 to nearly $500,000 at a time. In total, the fraudulent withdrawals amounted to:

• $495,000
• $287,000
• $295,000
• $90,000
• $60,000
• $295,000
• $495,000

This level of fraud, carried out from within one of the country’s leading banks, exposed significant security gaps in Uganda’s banking sector.

The E-Channels Dilemma: A Necessary Evolution or a Weak Link?

The Stanbic Bank heist is part of a growing trend of financial fraud linked to the rapid expansion of digital banking. While e-channels such as account-to-wallet transfers, agency banking, and mobile banking have made transactions more accessible, they have also created opportunities for internal fraud.

Commercial banks in Uganda, faced with high operational costs, have been shifting customers to digital platforms. Running a physical bank branch costs approximately UGX 30 million per month, while installing an ATM requires UGX 120 million, with UGX 8 million in monthly maintenance costs. As a result, banks encourage digital transactions to cut expenses. However, these systems have become vulnerable to fraud, as seen in the Stanbic case.

Internal staff, often underpaid despite handling billions, have exploited these weaknesses. Some employees monitor busy or dormant accounts, create fraudulent documents, and channel stolen money through mobile money systems, making it difficult to trace.

In some cases, bank employees have been caught siphoning as little as UGX 100 from millions of customer accounts—small enough to go unnoticed, but when multiplied across thousands of accounts, it amounts to hundreds of millions. There are also reports of bank insiders collaborating with hackers to steal billions.

Systemic Weaknesses: The Role of Integrators and Cybersecurity Gaps

A major vulnerability in Uganda’s banking system is the reliance on third-party integrators, most of whom are based in Nairobi, Kenya. These integrators connect banks to telecom companies, enabling mobile banking services. However, there is no direct link between banks and telecoms—transactions must pass through these external providers, creating security risks.

Unlike telecoms, which have improved their fraud prevention mechanisms—such as allowing customers to reverse incorrect mobile money transactions—banks lack such safeguards. Once money is stolen from a bank account, reversing the transaction is nearly impossible.

Analysts warn that most Ugandan banks do not conduct regular penetration testing using ethical hackers. Large multinational audit firms often hire professional hackers to test their cybersecurity, but many local banks consider it too expensive, leaving their systems vulnerable to exploitation.

Regulatory Response: Is the Bank of Uganda Prepared?

In April 2023, the Bank of Uganda introduced a directive requiring mobile money agents to verify identification for transactions exceeding UGX 1 million. While a step toward reducing fraud, this measure does not address the deeper cybersecurity and internal fraud challenges facing commercial banks.

The central bank has a digital payments and fraud prevention division, but experts argue that it lacks sufficient technical expertise to counter increasingly sophisticated cyber threats. Reports have even surfaced that hackers managed to breach the Bank of Uganda’s own systems, making away with billions.

The Way Forward: Strengthening Banking Security

To combat fraud and restore public trust, experts recommend a multi-faceted approach:

• Customer Awareness Campaigns: Banks must educate customers on digital fraud risks, password safety, and transaction security—similar to the campaigns run by telecoms.
• Stronger Internal Controls: Employee access to sensitive accounts must be strictly monitored, and transactions should require multi-step verification to prevent unauthorized withdrawals.
• Investment in Cybersecurity: Banks need to hire ethical hackers to test their systems regularly and improve digital security infrastructure.
• Judicial Expertise in E-Fraud: Uganda needs more legal professionals with expertise in cybercrime to effectively prosecute financial fraud cases.

The Stanbic Bank scandal is a wake-up call. If Uganda’s banks do not strengthen their cybersecurity and fraud prevention measures, more such heists are likely to follow, further eroding public confidence in the financial sector.

The post Stanbic Bank Fraud Scandal: How $1.8 Million Was Stolen from a Client’s Account appeared first on The Standard News (Uganda).

In her ruling, Justice Patricia Mutesi found that the bank breached its contractual obligations and ordered it to pay the couple UGX 60 million in damages, along with interest and legal costs.

Background of the Case

Kwagala, who had worked with Standard Chartered Bank since September 2017 as a credit analyst, applied for a staff mortgage facility in 2020 to purchase land in Kawempe Division. The property, which included rental houses, was valued at UGX 300 million. However, Kwagala was only eligible for a UGX 250 million mortgage.

To qualify for a higher loan amount, the bank advised that his wife’s income be considered. After reviewing Mbabazi’s pay slips, the bank approved a mortgage facility of UGX 312 million for the couple.

As part of the loan conditions, the bank required the couple to pay at least 20% of the property’s value—equivalent to UGX 60 million—before disbursement. To meet this requirement, the couple signed a sale agreement with the landowner and made an initial deposit of UGX 5 million. They then submitted the agreement, a copy of the land title, and other necessary documents to the bank. On July 15, 2020, the bank approved their mortgage application for UGX 240 million.

However, the bank imposed additional conditions, requiring Kwagala to clear his existing salary loan and provide proof of the UGX 60 million payment to the landowner. The couple exhausted their savings and took friendly loans to meet this condition. On August 25, 2020, they signed the mortgage facility letter and the mortgage deed, and the bank assured them that the funds would be disbursed within five working days.

Bank’s Unexpected Decision

To their shock, the funds were never disbursed. Instead, the bank informed Kwagala that its holding company had decided to phase out his department. He was later dismissed from the bank in December 2020. Standard Chartered then refused to release the mortgage funds, arguing that Kwagala was no longer an employee and that the loan had been contingent on his salary.

Feeling aggrieved, Kwagala and Mbabazi sued the bank, seeking a declaration that it had breached its contractual obligations by cancelling the approved loan.

Court’s Ruling

Justice Mutesi ruled that the bank had indeed defaulted on its obligations.

“The facility letter and mortgage deed are binding contracts under Section 10(1) of the Contracts Act, 2010. These agreements created enforceable legal obligations. The plaintiffs fulfilled all their contractual duties, yet the defendant failed to disburse the loan,” she stated.

The judge emphasized that once the facility letter and mortgage deed were signed, the loan offer had legally crystallized into a binding contract, making it unlawful for the bank to withdraw the offer.

She further noted that while the bank had the discretion to recall the loan, this discretion was governed by Clause 3.3 of the facility letter, which did not allow for cancellation due to restructuring decisions from the holding company—especially before those instructions were even implemented.

As a remedy, the court ordered Standard Chartered Bank to:

• Pay UGX 9 million in special damages, with an annual interest of 21% from 2020 until full payment.
• Pay UGX 50 million in general damages, with an annual interest of 16% until full payment.
• Cover the couple’s legal costs.

The ruling serves as a strong precedent reinforcing the enforceability of loan agreements once all contractual conditions have been met.

The post Court Orders Standard Chartered Bank to Pay UGX 60 Million for Unlawfully Cancelling Mortgage Facility appeared first on The Standard News (Uganda).

The Standard has learnt that the Directorate of Public Prosecutions (DPP) has sanctioned files for the immediate arrest and prosecution of the Bank’s officials suspected to be part of a racquet that facilitated the illicit transfer of nearly $1 million (about UGX 3.8 billion) in a scheme linked to a fraudulent gold deal that left American investor Robert Tunner impoverished.

A highly placed source within the investigation team described the situation as a “squeaky-bum time” at Stanbic Bank, with officials scrambling to explain how such a large sum of money was moved without following due procedure.

“Transactions of this scale require stringent oversight from both the bank and the Financial Intelligence Authority (FIA), yet in this case, anti-money laundering protocols were blatantly ignored. The government, determined to uncover the motivations behind this breach, has engaged the DPP, the Financial Intelligence Authority (FIA) and the Mineral Police at Naguru Headquarters, to track down those responsible,” our inspector said.

Investigators also believe some Stanbic bank officials may have received a generous “token of appreciation” from the fraudsters in exchange for looking the other way.

A Well-Orchestrated Scam

Robert Tunner, an American businessman with interests in the precious minerals trade, arrived in Uganda late last year, eager to finalize what seemed to be a lucrative gold transaction. Acting on referrals, he was introduced to individuals posing as legitimate gold dealers based in Kampala.

To establish credibility, the scammers—operating under a fictitious mining company—presented what appeared to be authentic gold bars and even staged a verification process at a local refinery.

The deal involved purchasing 50 kilograms of gold, valued at over $2.5 million. Tunner, convinced of the transaction’s legitimacy, transferred an initial deposit of over $800,000 into Stanbic Bank accounts linked to Maxim Advocates, a law firm owned by Uganda Law Society President Isaac Kimaze Ssemakadde and Sheila Namahe.

The scammers reassured him that the gold would be delivered to an agreed international destination.

Then came the delays—regulatory issues, customs hold-ups, last-minute taxation fees. Weeks turned into months before Tunner finally realized he had been duped.

Desperate for justice, Tunner reported the fraud to Ugandan authorities, sparking an intense investigation by the Criminal Investigations Directorate (CID).

Initial findings pointed to a sophisticated syndicate targeting foreign investors, with links to top security officials. While these allegations remain unverified, they paint a troubling picture of a deeply entrenched network of fraud.

Raids were swiftly conducted at Greenwave Ltd, an office in the upscale Kampala suburb of Muyenga, linked to a one Alexander, the son of a wealthy farmer based in Northern Uganda.

The Standard further learnt that Authorities apprehended multiple individuals, from office staff to security personnel, detaining them at Kabalagala Police Station for questioning.

However, when contacted for comment, Isaac Ssemakadde denied any direct involvement with Tunner. “I don’t know him, and he doesn’t know me. We’ve never met or done business together. I acted on behalf of my client, not Tunner. If he has issues, he should take them up with my client. I have no contract with him,” he stated. When pressed on whether Tunner’s name appeared in transaction records or if he had verified the purpose of the funds, Ssemakadde grew defensive, threatening legal action against any media outlet that published the story.

Stanbic Bank’s Deafening Silence

Despite multiple attempts to seek clarification from Stanbic Bank about the matter, their known contact numbers remained unanswered.

Tunner’s ordeal is yet another cautionary tale in Uganda’s volatile mineral sector, where foreign investors are increasingly falling prey to sophisticated scams. Authorities and industry experts urge due diligence, proper legal representation, and thorough background checks before engaging in gold transactions. The Uganda Police Force and the Ministry of Energy and Mineral Development continue to warn investors to verify deals through the Uganda Gold Exporters Association (UGEA) to avoid similar misfortunes.

A Pattern of Fraud

This is not the first time Stanbic Bank has been linked to fraudulent transactions. In 2023, the bank was implicated in the Nile Energy heist, where $1.8 million was siphoned through forged documents and transferred to shell companies like Petrom Ltd and Famane Investments. Several bank employees, including branch managers Moses Ayusiga (Garden City Branch) and David Ssekito (Freedom City Branch), were charged with money laundering.

A year later, in 2024, another international investor, Canadian businessman Clifford Potter, lost $1.7 million in a fake gold deal with Stephen Bairukanga. Funds were deposited into Stanbic and Equity Bank accounts before being swiftly withdrawn.

Lawyers accused both banks of gross negligence for failing to flag suspicious transactions. Police investigations suggested possible collusion between bank staff and the fraudsters, mirroring the Tunner case.

Gold-related fraud in Uganda continues to flourish, often involving high-profile lawyers and individuals claiming to fight corruption while allegedly enabling these schemes.

The pattern is clear, but will the authorities finally take decisive action?

Or will Stanbic Bank’s latest scandal fade into yet another unsolved chapter in Uganda’s financial fraud epidemic?

If you or someone you know has fallen victim to a similar fraud scheme, you can share your story by emailing thestandard256@gmail.com or contacting +256750474440. Your testimony could help expose the truth and bring those responsible to justice.

The post Stanbic Bank’s Fraud Epidemic: How Bank Officials Became Enablers of International Scammers appeared first on The Standard News (Uganda).

The revelation has sparked nationwide concern, with authorities now racing to dismantle a network believed to involve senior officials from the Ministry of Finance, the BoU, and former ICT personnel from the Uganda Police Force.

Reports indicate that the scheme was carefully planned and executed over several months, exploiting loopholes in the financial system to facilitate unauthorized transactions. Investigations by the Criminal Investigations Directorate (CID) have traced some key players to the United States, where they relocated after previously holding positions in Uganda’s security and financial sectors.

The scandal has reignited concerns over cybersecurity and institutional weaknesses, especially as authorities revisit past fraud attempts targeting the central bank.

In January 2024, Pedson Twesigomwe, the Assistant Commissioner for Accounts at the Ministry of Finance, intercepted a fraudulent transfer of $6 million (UGX 23 billion) destined for Poland. While the funds were successfully rerouted, it now appears this may have been an early attempt by the same syndicate to defraud the government.

Bank of Uganda Distances Itself from the Scandal

As the scandal unfolds, BoU has moved swiftly to distance itself from any wrongdoing, insisting that it merely executed payment instructions provided by external entities.

Deputy Governor Michael Atingi-Ego emphasized that “Bank of Uganda is a paying entity. You get instructions to pay, and we pay as instructed,” further clarifying that the fraud originated outside the bank’s IT infrastructure.

Investigations reveal that the fraudulent activities involved two major transactions. On September 12, 2024, a payment of USD 6.134 million meant for the World Bank was instead funnelled to Roadway Company Limited through MUFG Bank in Japan. Two weeks later, on September 28, 2024, another payment of USD 8.596 million intended for the African Development Fund was redirected to MJS International in London. While authorities have recovered USD 8.205 million, a significant portion of the funds remains unaccounted for.

The involvement of ICT experts in the scheme has raised serious concerns about cybersecurity vulnerabilities in Uganda’s financial sector. Initial reports in November 2024 suggested that hackers had breached BoU’s systems, but subsequent investigations dismissed these claims, confirming that the fraud was orchestrated externally by individuals who manipulated payment processes.

Government Under Pressure to Act

With multiple high-profile arrests already made, security agencies are intensifying efforts to dismantle the criminal network and recover the remaining funds. Nine senior officials, including Accountant General Lawrence Semakula, have been detained and are facing corruption charges.

Meanwhile, financial watchdogs and opposition politicians are demanding accountability from the government, calling for stricter oversight and reforms to prevent future fraud.

The Office of the Auditor General has launched an independent inquiry, and President Yoweri Museveni has directed the Directorate of Intelligence Services (DIS) to join the investigation.

The latest revelations only add to BoU’s woes, reinforcing concerns over the integrity of the country’s banking system.

The post Uganda’s Biggest Bank Heist: How UGX 60 Billion Vanished in High-Level Government Fraud appeared first on The Standard News (Uganda).

In a detailed complaint addressed to Airtel Uganda on January 23, 2025, Musubika accused Gold Credit, a lending app available on the Play Store, of breaching borrowers’ privacy and violating their rights.

She highlighted that the app unlawfully targets contacts in borrowers’ mobile phone books, sending demand notices and threatening messages without consent.

According to Musubika, Gold Credit representatives claim the authority to deduct money from the mobile money accounts of borrowers’ contacts, even though those contacts have no formal agreement with the lender.

“The amounts communicated are often incorrect and grossly exaggerated,” the letter stated.

The whistleblower also revealed that a person claiming to be a CID officer, identified as Byarugaba Reagan, has been sending threatening WhatsApp messages to borrowers’ contacts, further heightening fears.

“These actions are alarming, unethical, and potentially illegal,” Musubika noted, calling for Airtel to investigate the app’s activities on its platform.

Musubika further accused other lending apps, including Quick Sente and Kwasakwasa, of exploiting borrowers by charging interest rates that exceed legal limits.

She urged Airtel Uganda to take immediate action, including blocking the apps from making unauthorised deductions and holding the culprits accountable.

The whistleblower also appealed to key authorities, including the Inspector General of Police (IGP), Uganda Microfinance Regulatory Authority (UMRA), and Bank of Uganda (BoU), to investigate and clamp down on predatory lending practices in the country.

This complaint sheds light on the growing issue of unregulated digital lending, which has raised alarm among borrowers and consumer protection advocates.

Stakeholders are being urged to act swiftly to protect the privacy and rights of Ugandans while ensuring ethical business practices in the financial sector.

Airtel Uganda has yet to issue a public statement regarding the matter.

The post Whistleblower Exposes Alleged Illegal Activities of Digital Lending App in Uganda appeared first on The Standard News (Uganda).

Although the grand theft came to the public fore this week, URN understands that the money disappeared nearly five weeks ago, and President Yoweri Museveni then directed Maj. Tom Magambo, director of police’s Criminal Investigations Directorate (CID) took the lead in finding out how the money was siphoned out of the coffers.

To date, at least 17 people have been probed, including nine from BOU, six from the Finance ministry and two from the Accountant General’s office. All the suspects are currently under tight security surveillance and some of their gadgets such as laptops and smartphones have been confiscated.

Furthermore, the president tasked Defence Intelligence and Security (DIS) formerly Chieftaincy of Military Intelligence (CMI) to spearhead the investigations in collaboration with CID and ESO.

Although the army and police which oversee CID have remained cagey about the matter, Henry Musasizi, the state minister for Finance confirmed to parliament the ongoing probe. He added that the amount of money being reported in local and international media is too much.

However, Musasizi did not reveal the exact amount of money BOU lost but promised to tell parliament the final details after the probe. Musasizi’s response was triggered by the leader of opposition Joel Ssenyonyi, who demanded the government’s explanation about the theft.

BoU has reportedly already written to the UK authorities, and some accounts where over $11m (about Shs 40 billion) had been wired have since been frozen.

“As part of the efforts to recover the syphoned money, BOU and CID demanded Interpol-Uganda intervention, and an alert note was sent to Japan, UK and Interpol headquarters. There are other three countries where investigations are leading, and they might also be given an alert once investigations confirm that part of the money ended there,” sources said.

Interpol-Uganda is headed by Joseph Obwana, deputised by Fred Enanga and Yusuf Ssewanyana, who are grounded in economic crime investigations.

Obwana was deputy to now-retired AIGP Grace Akullo when she was director of CID, Enanga once served as an economic crime investigator at CID while Ssewanyana is an IT expert who, until three months ago, was director of police’s ICT directorate.

The post Bank of Uganda, ministry of Finance staff, not hackers behind Shs 60bn heist appeared first on The Standard News (Uganda).

Initially, the tender was won by Moroccan frim, but money hangs on instead, conniving with procurement, and rescinding the tender to one of the Arab countries that has taken over.

However, as they could execute the assignment of installing the Mobile Money Application switch, it is reported that they wired the money back to the Arab country in connivance with some Bank of Uganda top staff.

The above revelation has pushed President Yoweri Museveni to institute an investigation in the Bank of Uganda.

In the wake of yesterday, a probe was raised after counterfeit currency worth approximately Shs500 million was discovered in the vault of a government-owned bank, PostBank, in Mbale branch.

BoU is mandated with regulating and disbursing money and one wonders how commercial bank can distribute counterfeit notes without BoU knowledge.

The investigation, led by police in the Elgon Sub-region and PostBank, resulted in the arrest of several bank and security officials.

Elgon police spokesperson Rogers Taitika confirmed that the case is before the courts of law.

Preliminary investigations suggest that a syndicate involving several bank personnel was behind the counterfeit money, according to a police detective.

“Each bundle had genuine notes covering the fake notes. There is a loss of money worth Shs500 million or more,” the detective said.

Early this month, another scandal erupted at BoU as its officials stole old currency notes meant for destruction.

Charles Kasede Ochieng, former Head of Verification at the Bank of Uganda (BoU), was sentenced to three years in prison by Grade One Magistrate Esther Asiimwe for abuse of office and acquitted him on the embezzlement charge due to lack of evidence.

In CCTV footage, he was seen placing bundles of money into his pocket meant for destruction and discreetly walking away. The court determined that these actions violated his role, classifying it as an arbitrary abuse of his official position.

From November 2018 to August 2019, while working as Head of the Verification Unit at the BoU’s Mbale branch, Ochieng engaged in actions that led to his conviction.

State Attorney Nicholas Kawooya, representing the Office of the Director of Public Prosecutions (ODPP), called for a sentence of three and a half years, citing a breach of trust by Ochieng.

Kawooya emphasised the seriousness of the crime, noting that as a verification officer, Ochieng held a role of integrity in a crucial institution that upholds the country’s monetary system.

Kawooya argued that Ochieng’s act of taking old notes designated for destruction demonstrated corrupt intent and damaged BoU’s trust in its employees.

The post BoU Under Probe Over Billions Lost in Mobile Money Switch appeared first on The Standard News (Uganda).