Published on 16/12/2024
Parliament’s Finance Committee has summoned the Ministry of Finance, Financial Intelligence Authority, and Bank of Uganda to explain and account for a major security breach that saw UGX 62 billion siphoned from central bank accounts.
Committee Vice Chairperson Moses Aleper (Chekwii County), announced the move in a press briefing, signaling accountability demands. The investigation aims to uncover how such a colossal fraud was executed and prevent future vulnerabilities.
“We are summoning them—particularly the Ministry of Finance, FIA, and Central Bank—to explain what happened. It’s part of our oversight role, and we can’t wait for their report to address public concerns,” Aleper stated during a training organized by the Uganda Parliamentary Network on Illicit Financial Flow in Kampala.
Aleper highlighted the urgency of addressing the public anxiety created by the heist, stressing the need for accountability to restore trust in Uganda’s financial systems. He said the Committee expects to meet with the implicated parties by mid-December.
“This incident has undermined the credibility of our financial institutions, raising serious questions about the effectiveness of internal controls and the security of our financial architecture,” Aleper added.
Joseph Ahaisibwe, a Senior Economist with SEATINI Uganda, warned of potential economic repercussions, including an increase in the cost of credit. He explained that public fears might trigger massive withdrawals from commercial banks, reducing their liquidity and raising lending rates.
“When deposits decrease, banks have less money to lend. Reduced supply, coupled with high demand, will inevitably drive up the cost of borrowing,” Ahaisibwe said.
MP Maurice Kibalya (Bugabula South) expressed skepticism over the official explanations, hinting at possible insider collusion within government institutions.
“Why is it that these incidents only happen in government entities? The Central Bank is supposed to have the most robust systems for safeguarding money. For UGX 62 billion to disappear, it suggests a coordinated effort involving high-level officials,” Kibalya asserted.
He further questioned the security of other assets held by the Central Bank, including Uganda’s foreign reserves. “If physical cash can disappear, what about reserves we can’t see? This is a massive failure of governance,” he said.
The Tororo District Woman MP, Sarah Opendi, voiced concerns about counterfeit money infiltrating the banking system following the discovery of UGX 500 million in fake notes at Post Bank Uganda. She questioned whether Ugandans can still trust banks to issue genuine currency.
“Should we now invest in personal currency detectors? If banks are failing to verify the authenticity of money, how can customers be sure they’re receiving legitimate notes?” Opendi asked.
Unlike the Central Bank, which has yet to comment on the heist, Post Bank issued a statement confirming that its internal systems had uncovered the counterfeit notes. Preliminary investigations revealed collusion involving a currency custodian at the Mbale branch.
“The implicated staff have been arrested, and oversight lapses are being addressed. This was an isolated incident, and all customer transactions remain secure,” the bank stated on November 28, 2024.
The Finance Committee’s investigation aims to hold the government accountable and prevent future breaches. Aleper emphasized that Parliament’s oversight role is critical, especially when public trust in the financial sector is at stake.
“The recent events highlight systemic vulnerabilities. It’s our duty to uncover what went wrong and ensure such incidents are not repeated,” he concluded.
