Kampala, Uganda – The High Court of Uganda on Monday denied bail to two senior IT officers from the Ministry of Finance, Planning, and Economic Development over their alleged central role in the infamous Shs 60bn financial fraud scheme.

Justice Lawrence Gidudu ruled that Tony Yawe and Mark Kasiiku were the ‘principal actors’ in the alleged corruption scandal, which involved manipulating Uganda’s Integrated Financial Management System (IFMS) to divert government funds. 

The judge cited their ‘direct involvement’ in ‘altering electronic payment instructions’, failure to provide sufficient security for bail, and the magnitude of financial loss as key reasons for keeping them in custody.

The decision follows the arrest and prosecution of eight high-ranking ministry officials, all accused of corruption, money laundering, abuse of office, and electronic fraud.   

While six of them, including Accountant General Lawrence Semakula and Commissioner Jennifer Muhuruzi, were granted bail under strict conditions, the court ruled that Yawe and Kasiiku posed a greater risk and must remain in detention pending trial. 

Background: How the Multi-Million Dollar Fraud Unfolded

The case centers around an elaborate scheme to manipulate IFMS, the electronic platform used by the Ugandan government to process financial transactions.

According to the charge sheet, large sums of money meant for the International Development Association (IDA) in Washington, USA were fraudulently redirected to unauthorized companies. Key transactions under investigation include:

• $6,134,137.75 allegedly redirected to Roadway Co Ltd (Tokyo, Japan)
• $6,674,320.75 rerouted to International Development Association (Poland)
• $8,596,824.26 illegally transferred to MJS International (London, UK)

The fraud reportedly involved manipulating payment files and altering payee details to facilitate unauthorized transfers. 

The prosecution claims that Yawe and Kasiiku used their access rights as IT officers to alter digital financial records, while other officials either failed to prevent the fraud or attempted to cover it up.

In his ruling, Justice Gidudu outlined four major reasons for denying bail to the two IT specialists:

Unlike other accused officials who were implicated due to negligence or failure to report irregularities, Yawe and Kasiiku were the ones who actively altered government payment systems. The judge emphasized:

“The reason this matter is in court is because of the alleged misuse of Yawe’s mandate on IFMS. He raided the platform and changed a legitimate payment into an illegitimate one. All other accused persons are affected by his action.”

Insufficient Security for Bail

Justice Gidudu ruled that the accused failed to furnish adequate security guarantees that would ensure they return for trial.

“The accused need to furnish substantial security to assure the court they will return for trial. So far, their disclosed security is insufficient.”

Unlike other suspects who offered valuable land titles and cash deposits, Yawe and Kasiiku did not provide any security significant enough to justify their release.

The judge noted that releasing those who played a direct role in siphoning the funds could undermine public confidence in the justice system.

While the judge dismissed general fears about Uganda’s porous borders, he ruled that Yawe and Kasiiku’s lack of substantial security increases the likelihood that they could flee.

The prosecution also expressed concerns that the accused could obstruct investigations, given their technical expertise in Uganda’s financial system. However, the court acknowledged that their system access had already been revoked, reducing their ability to interfere with electronic evidence.

Bail Granted to Six Co-Accused with Strict Conditions

While Yawe and Kasiiku remain in custody, six other accused officials were granted bail, including:

• Accountant General Lawrence Semakula
• Commissioner Jennifer Muhuruzi
• Senior Accountant Kusiima Deborah Dorothy
• Accountant Ashaba Judith
• Research Assistant Accountant Bettina Nayebare
• IT Systems Officer Paul Nkalubo Lumala

The court ruled that these officials were not the primary actors in the fraud, and their charges were based on negligence or failing to report financial irregularities.

However, their bail came with strict conditions, including:

• Cash deposits ranging from UGX 20 million to UGX 30 million.
• Surrendering passports to the court.
• Monthly reporting to the High Court Registrar.
• Restrictions from accessing their offices unless authorized by the Secretary to the Treasury.

Justice Gidudu rejected arguments that public officials from the Finance Ministry should not act as sureties, ruling that an accused’s rights should not be limited simply because they are under investigation.

The case is expected to return to court in April 2025, with public pressure mounting on authorities to hold those responsible accountable.

This fraud case has once again raised concerns about corruption in Uganda’s public financial system, sparking debate on the need for stronger digital security and oversight mechanisms to prevent future incidents.