Bank of Uganda confirms hack, refutes claims that $16.8 million was stolen

Uganda’s central bank has confirmed that hackers breached their IT system and illegally transferred funds. The finance ministry however refuted claims that the stolen funds were as much as 62 billion Ugandan shillings ($16.8 million) as reported by the state-owned New Vision newspaper.

Recall that we reported yesterday that Offshore hackers based in Southeast Asia stole $16.8 million from Uganda’s central bank. The hackers, identifying themselves as “Waste,” reportedly accessed the Bank of Uganda’s IT systems and illicitly transferred the funds earlier this month.

Confirming the breach, the Minister of State for Finance, Henry Musasizi told lawmakers at the parliament on Thursday, “It is true that our account was hacked, but not to the extent of what is being reported,” he said. 

He added that investigations are underway and a report of the entire incident would be presented before the House in the next month. “To avoid misrepresentation of facts, when the audit and CID investigations are finalized, I beg that I come to this house and report.”

Controversies seem to have erupted as the opposition’s Joel Ssenyonyi told fellow members of parliament Thursday, requesting clarifications as soon as possible. “It alarmed me because this is our central bank. I thought the government should help us understand; it is important that we know what exactly is happening,” he said. 

The parliament has directed the county’s auditor general and the criminal investigations department to carry out the investigations. However, the central bank and the police declined to comment until the investigation was complete.

The Uganda Central Bank hack

On Thursday, the New Vision newspaper reported that a group known as “Waste” based in southeast Asia took 62 billion shillings ($16.8 million) from the coffers of the Ugandan Central Bank. Another, the Daily Monitor newspaper said the amount was 47.8 billion shillings and the money was deposited into accounts in Japan and the UK.

According to Reuters, the hacking group based in Southeast Asia sent part of the stolen money to Japan, citing unnamed sources at the bank. Bank of Uganda did not immediately respond to a request for comment on the matter, the news platform said. The Ugandan police also did not respond to a request for comments.

Following this, the United Kingdom authorities froze about $7 million although the robbers had already withdrawn a portion of the cash, the Monitor reported Friday. The syndicate received $6 million in Japan, it said.

The reporting newspaper, New Vision also claimed that the central bank had successfully recovered over half of the money from the hackers. In response to the cyber attack, President Yoweri Museveni has ordered an investigation, it said. Separately Uganda’s biggest independent newspaper, Daily Monitor, reported that the theft may have involved collusion by insiders.

Cyber thefts from banks and other financial service providers, including telecom firms, have occurred many times in Uganda. However, police officials have said that some banks are hesitant to publicly acknowledge such incidents due to fears of alienating customers.

The country has been in the news for social media censorship of late. Recall that two weeks ago two popular Ugandan TikTokers were arrested and detained for allegedly insulting members of the president’s family.

The BBC reports that the TikTokers, 21-year-old David Ssengozi, alias Lucky Choice, and Isaiah Ssekagiri, 28, were held for allegedly insulting President Yoweri Museveni, the first lady, Janet Museveni, and the president’s son, General Muhoozi Kainerugaba on the video-sharing platform, TikTok.

Similarly, in 2022, award-winning Ugandan author, Kakwenza Rukirabashaija was charged with two counts of “offensive communication” after making uncomplimentary remarks about the president and his son on Twitter. He was arrested and thrown in jail where he was reportedly tortured. He would spend a month in prison before escaping and fleeing to Germany.

Also Read: Asian hackers allegedly stole $16.8 million from the Central Bank of Uganda.