The trial of nine ministry of Finance officials accused of fraudulently diverting more than $14 million (about Shs 60 billion) to foreign companies in March 2024 has begun at the Anti-Corruption court in Kampala.The prosecution alleges that the officials manipulated electronic payment files generated by the Integrated Financial Management System (IFMS), diverting funds intended for the International Development Association (IDA), part of the World Bank Group, and the African Development Fund, the concessional lending arm of the African Development Bank.Those charged include former Accountant General Lawrence Ssemakula; former director of Treasury Services and Asset Management Jennifer Muhuruzi; Paul Nkalubo Lumala, a systems IT officer; Deborah Dorothy Kusiima, a senior accountant in the Treasury Services Department; Judith Ashaba, an accountant; Bettina Nayebare, a research assistant; Mark Kasiiku, an IT systems officer; Tonny Yawe, an IT senior officer; and Pedison Twesigomwe, an assistant commissioner for accounts.Investigators allege that payment instructions were altered before being transmitted to the Bank of Uganda, resulting in the money being sent to unintended foreign beneficiaries.The prosecution further alleges that some officials failed to put in place adequate safeguards to protect government financial systems, while others participated in or facilitated the manipulation of payment processes.The first prosecution witness, Dr Edward Ssengozi Damulira, ministry of Finance’s under secretary and accounting officer, testified about government funding for upgrades to its financial management systems before the alleged fraud.Damulira, 53, told justice David Makumbi on Tuesday that government released Shs 13 billion in supplementary funding during the 2022/2023 financial year to improve the efficiency of its financial management systems.He said the ministry had initially requested Shs 26 billion to upgrade the Integrated Financial Management System (IFMS), but the permanent secretary and secretary to the Treasury approved half of the amount.According to Damulira, the request was made towards the end of June 2022, following communication from the Accountant General’s Office indicating the need to upgrade the system.He said the funds were allocated to the Financial Management Services Department and the Management Information Systems Department, which support government financial platforms and maintain the ministry’s information technology infrastructure.Led in his testimony by Assistant Director of Public Prosecutions Thomas Jatiko, Damulira said the upgrade covered three major government platforms: the Programme Budgeting System, the Integrated Financial Management System and the Electronic Government Procurement System.He said the upgraded systems were presented to senior ministry officials during the 17th senior top technical management meeting for the 2022/2023 financial year, held on November 4, 2022.Minutes of the meeting, presented in court as a prosecution exhibit, indicated that the Accountant General had recommended continuous change management and refresher training for users following the upgrades.Damulira said the meeting also resolved that the Accountant General should organise further engagements on the payment structure and submit a comprehensive report on the systems, focusing on their efficiency, security and staff capacity.He told the court that all local governments and hospitals had by then been connected to the financial management system. Asked whether the ministry had released additional funds for the upgrades beyond the Shs 13 billion, Damulira said he was not aware of any other allocation.He described the upgraded platform as productive, saying he personally used the system and had observed improvements in its functionality. However, he clarified that he was not directly responsible for managing Treasury operations and could not account for all activities undertaken by the Accountant General’s Office.Damulira also told the court that he first learnt of a security incident involving government payments during one of the Friday senior technical management meetings.He said the Accountant General informed the meeting that a security problem involving the Bank of Uganda had resulted in money being paid to the wrong party, adding that efforts were underway to recover the funds.However, Damulira said he was not informed whether the money was eventually recovered because the matter was classified and he was not directly involved in Treasury operations.He further testified that around March 2024, the department responsible for managing the ministry’s information systems reported unusual activity within the system.Asked whether he knew of specific incidents that could have led to the alleged loss of public funds, Damulira said the Accountant General reported directly to the permanent secretary and secretary to the Treasury, meaning he was not privy to all operational developments in that office.He said he only learnt the circumstances surrounding the alleged loss of government money when he was summoned to record a statement.Damulira also explained the ministry’s financial management structure, telling the court that it operates two budget votes: Vote 008, which caters for the entire ministry, and Vote 130, which manages Treasury operations, including debt servicing, contingency payments and other Treasury-related obligations.He said the Accountant General supervises seven departments responsible for financial management services, information systems, Treasury inspection, asset management, Treasury services, procurement policy and public sector accounts.Damulira described Treasury staff as hardworking and professional, saying their work was central to the delivery of government financial services across the country.He said he had not personally encountered an incident similar to the one that had brought the accused before court since joining the ministry in December 2017.He told the court that he joined as a principal assistant secretary before being promoted to under secretary and appointed accounting officer in 2020. His responsibilities include preparing the ministry’s budget, approving requisitions, accounting for public funds and overseeing planning activities.The hearing commenced after defence lawyer Mwesigwa Rukutana informed the court that the accused were ready to proceed with the trial. He also told the court that the defence had reviewed the proposed list of assessors and had no objection to their appointment.Six assessors were subsequently sworn in to assist the court during the proceedings.At one point, the defence objected to a prosecution question about how Damulira had learnt of the incidents that led to the alleged loss of government money, arguing that the witness had not yet given evidence establishing that a loss had occurred.However, justice Makumbi allowed the prosecution to proceed with the question.The nine officials have denied the charges arising from allegations that government payment systems were manipulated to divert money intended for repayment of loans to international financial institutions.The post Shs 60bn Bank of Uganda heist trial involving Finance officials begins appeared first on The Observer Media Ltd.