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Ating-Ego was tasked to explain two questionable debt servicing payments: US$6.134 million intended for the World Bank and US$8.596 million meant for the African Development Fund
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By Our Reporter
PARLIAMENT – Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, has dismissed allegations that the central bank's financial systems were hacked during a recent Shs60Bn fraudulent transaction, stating that a thorough investigation revealed no evidence of such an intrusion.
Atingi-Ego made the clarification while appearing before Parliament’s Committee of Commissions, Statutory Authorities, and State Enterprises (COSASE), where he was tasked to explain two questionable debt servicing payments: US$6.134 million intended for the World Bank and US$8.596 million meant for the African Development Fund. Both payments were erroneously routed to accounts in Japan.
Atingi-Ego made the clarification while appearing before Parliament’s Committee of Commissions, Statutory Authorities, and State Enterprises (COSASE)
According to Atingi-Ego, the Central Bank became aware of the error after receiving an inquiry from the Ministry of Finance on September 8, 2024. The transactions had been completed on September 12 and September 20, respectively. Atingi-Ego noted that the Bank of Uganda, in collaboration with the Ministry of Finance and the Chief Internal Auditor, launched an independent forensic audit and alerted the police to investigate. Efforts to recover the funds are ongoing.
“We conducted a thorough investigation of our systems, and there is no evidence whatsoever that they were hacked. This misinformation, both locally and internationally, caused unnecessary concern among our corresponding banks,” Atingi-Ego remarked.
Governor vacancy raises concern
The meeting also highlighted growing frustration over the three-year delay in appointing a substantive Governor for the Bank of Uganda following the death of Emmanuel Tumusiime-Mutebile.
MPs criticized the Bank's Board of Directors and senior management for failing to address the vacancy, suggesting that the issue had never been discussed in board meetings. Martin Muzaale (Buzaaya County) expressed disappointment, saying, “The public is concerned about the Governor's vacancy, yet this matter has never been placed on the board’s agenda.”
Martin Muzaale (Buzaaya County)
Allan Mayanja (Nakaseke Central) questioned Atingi-Ego's willingness to continue holding dual roles if his current contract is renewed in April 2025, asking, “Are you comfortable serving in two positions?”
In response, Atingi-Ego noted that the appointment of a Governor falls under the President’s purview, adding, “The appointing authority is aware of the vacancy. It is not my place to comment on Constitutional matters or speculate on the President’s decisions.”
Allan Mayanja
Heated exchange
A sharp exchange ensued between Atingi-Ego and COSASE Chairperson Medard Sseggona over the Deputy Governor’s role in reminding the President about the vacancy.
Sseggona remarked, “The Deputy Governor has a duty to remind the President that this vacancy exists. Maybe you are comfortable with his absence.” Atingi-Ego countered, “The appointing authority knows there is no Governor. It is not correct to insinuate that he has forgotten.”
The discussion highlighted concerns over the prolonged leadership gap at the Central Bank, with MPs calling for urgent action to restore public confidence and ensure effective governance of Uganda’s financial systems.
Medard Sseggona
Next steps
COSASE has tasked the Bank of Uganda to provide a detailed report on the fraudulent transactions, recovery efforts, and the status of internal reforms to prevent future occurrences. MPs also called for the fast-tracking of the appointment of a substantive Governor to strengthen the institution’s leadership and credibility.
Torch Media Africa
