BOU denies involvement in UGX 60 Billion fraud, says payment directives came from external sources
Atingi-Ego dismissed allegations that the fraud stemmed from a breach of BoU’s IT systems, explaining that the funds were diverted after leaving the Bank's control.
The Bank of Uganda (BoU) has distanced itself from the UGX 60 billion fraud scandal, clarifying that it acted on external payment directives and that the fraud did not originate from its systems.
Speaking on Friday, Deputy Governor Michael Atingi-Ego emphasized that the Central Bank’s role was limited to executing instructions it received.
He stated, “These fraud incidents were initiated externally to divert funds. The Bank of Uganda is a paying entity. We receive instructions to make payments and execute them as directed.”
Atingi-Ego dismissed allegations that the fraud stemmed from a breach of BoU’s IT systems, explaining that the funds were diverted after leaving the Bank’s control. Investigations are ongoing to determine the source of the diversion and identify those responsible.
The Deputy Governor outlined how the fraud occurred, revealing that two payments intended for international creditors were misdirected.
On September 12, 2024, USD 6.134 million meant for the World Bank was sent to Roadway Company Limited via MUFG Bank in Japan. Later, on September 28, 2024, USD 8.596 million intended for the African Development Fund was redirected to MJS International in London, UK.
Upon discovering the anomalies, BoU initiated investigations and alerted the Criminal Investigations Directorate (CID) and the Financial Intelligence Authority (FIA).
Atingi-Ego noted that immediate steps were taken to recover the funds, including freezing the implicated accounts through BoU’s correspondent, Citi Bank. So far, USD 8.205 million has been recovered and returned to Uganda’s consolidated fund account.
However, USD 391,000 from the UK transaction remains unrecovered, while funds sent to Roadway Company in Japan are still inaccessible due to lack of cooperation from MUFG Bank.
He expressed frustration, stating, “Unlike the UK bank, the Japanese bank has not been forthcoming, but we are working with domestic and international partners to recover these funds.”
Addressing claims that BoU’s systems were hacked, Atingi-Ego categorically denied the allegations. “There is no evidence of unauthorized access to the Bank’s IT systems. The fraud originated outside our systems,” he said.
On whether any BoU staff were implicated, Atingi-Ego clarified, “So far, no staff member has been found culpable.”
He reaffirmed the Bank’s commitment to transparency and ongoing efforts to recover the remaining funds and ensure accountability.
The Auditor General’s independent investigation and ongoing probes by relevant authorities are expected to shed more light on the incident.
