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David Mbarekye, CFO Mbarara City showing evidence for the money that was stolen while he was away
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By Joshua Nahamya
Mbarara
Mbarara City Chief Finance Officer (CFO) David Tibekyenga Mbarekye has spoken out for the first time after he was ordered to step aside over allegations of gross misconduct—a move he now claims was orchestrated to conceal a Shs 712,756,278 fraud allegedly spearheaded by the City Town Clerk, Justin Barekye, and other senior staff.
Evidence presented by David Barekye over fraud at Mbarara City Council spearheaded by the City Town Clerk Justin Barekye
Staff petition leads to CFO’s suspension
On 11 November 2025, 24 senior staff of Mbarara City Council, including heads of departments, petitioned council demanding the dismissal of the CFO over accusations of indiscipline, abuse of office, and creating a toxic work environment. During the council meeting chaired by Speaker Bonny Tashobya, councillors resolved that Mbarekye step aside as investigations continue. The Deputy Town Clerk, Simon Ejau, was tasked to form a committee to probe the allegations.
Mbarara City Council Meeting on 11th November, 2025
CFO claims he was framed to conceal fraud
Speaking today morning, Mbarekye insisted he is innocent, claiming staff were bribed to frame him so they could proceed with fraudulent transactions involving city funds.
“Most of these members were bribed to mobilize and coach accusations against me. I could not apologize for forged allegations,” he said.
He added that the allegations were first presented orally to the Multipurpose Committee on 21 October 2025, bypassing the Town Clerk’s office in violation of public service procedures.
“It was improper for non-members to present forged accusations not even listed on the agenda. The committee entertained accusations without following procedures,” he noted.
Mbarekye cited the Labor Act and Public Service Standing Orders, arguing that the accusations lacked written documentation, lawful procedure, proper framing of charges, and impartiality.
Eunice Asiimwe, Chairperson Multipurpose Committee pinning David Barekye CFO over alleged misconduct on Tuesday during Council. [Photo: Joshua Nahamya]
‘Town Clerk removed me to execute fraud’ — CFO
The CFO alleges that Town Clerk Justin Barekye removed him from the financial system and replaced him with Donanti Kamugisha, Treasurer of Mbarara City North Division, to facilitate the alleged fraud.
“They removed me to accomplish their missions. The Solicitor General said you cannot build someone’s capacity by removing them from office,” he said.
According to Mbarekye, the funds meant for city projects—including schools, street lights, garbage management, and construction works—were instead diverted to individuals.
Accused Town Clerk, Justin Barekye
Breakdown of Alleged Fraudulent Payments
Mbarekye provided a detailed account of disbursements allegedly made in a single day or within days, including:
Internal Auditor (Mugizi Milton): Shs 52m
City Service Commission (Atwine Dominic): Shs 55m
Kenkombe Garbage Management: Shs 67m
Principal Environment Officer (David Sancho Nuwagaba): Shs 47m
Treasurer Kamugisha (City North Division): Shs 13.8m
Multiple disbursements to individuals on 26–27 June, some up to Shs 30m per transaction
He claims these funds were meant for projects such as:
Street lights on High Street (Shs 91m)
Tax Park and Bus Park toilets (Shs 70m)
Biharwe Mixed P/S (Shs 125m)
Katebe P/S (Shs 17m)
Revenue collection vehicle
“These projects stalled because the money was disbursed to individuals instead,” he said.
Numerous withdraws that were done in a single day by incomptent staffs at Mbarara City Council
City in financial distress
The CFO warned that Mbarara City is now struggling financially:
“The city is in financial distress. We opened the financial year with Shs 1.66bn, but this money was diverted. Projects are being brought back for reallocation because funds were swindled.”
Mbarekye confirming how his signiture was forged for the release of some of the amounts including Shs 6mln just to a secretary Japhari Muhairwe
Fears for his safety
Mbarekye further claimed he now fears interacting with some city officials:
“I even fear going to the Town Clerk’s office. She may even claim rape against me. I am avoiding these committees because they want to twist whatever I say.”
He insisted he remains competent and mentally stable: “Can someone with a mental problem make this analysis? Sixty-two billion went through my hands last financial year—have you heard of any misappropriation?”
Ready to step aside, willing to cooperate
Mbarekye said he is willing to step aside and allow the investigations to continue but insists the allegations against him are meant to divert attention from fraud.
“They thought the CFO’s office has free money to release, forgetting funds were meant for projects—not eating.”
He vowed to take the matter to court if necessary, saying he has all the evidence needed.
A total of Shs 712,756,278 that was swindled all together during the issue at Mbarara City Council which needs to be investigated by relevant authorities and agencies
Town clerk declines to comment
Efforts to obtain a comment from Town Clerk Justin Barekye were unsuccessful. She declined the interview, saying the matter is under investigation.
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