The Bank of Uganda (BoU) has strengthened its internal security systems following security breaches, governor Michael Atingi-Ego told Parliament.
Appearing before the Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises, Atingi-Ego disclosed that the central bank had reviewed its infrastructure following a physical break-in and allegations of system manipulation at its headquarters.
Atingi-Ego said the incidents involved a physical security breach and fraudulent payments, rather than an external cyberattack.
Committee chairman Muwada Nkunyingi pressed the governor to detail measures taken to restore public confidence.
Atingi-Ego assured Parliament that perceived weaknesses had been addressed, clarifying that the disruptions stemmed from fraudulent payments rather than external cyberattacks.
In response, Atingi-Ego said: “We have looked at them [incidents] and where there are any perceived weaknesses, we have strengthened them. And we are confident in that.”
He further rejected the description of one of the incidents as hacking, reiterating that the matter involved fraudulent payments.
The security failures included a physical breach where intruders used duplicated keys to steal laptops, a router and a CCTV server.
Separately, an investigation was launched into the fraudulent redirection of approximately $14 million in public funds intended for foreign debt repayments, moved via unauthorised modifications to the payment architecture.
Reviewing the financial year ended 30 June 2025, the auditor-general delivered a clean audit opinion.
Despite the positive balance sheet, Atingi-Ego cautioned that heavy government borrowing continues to drive up commercial interest rates, crowding out private lenders.
The committee also raised concerns over loan terms, excessive recovery charges, the manipulation of customers’ accounts and limited access to the central bank’s complaint-resolution mechanisms.
MP Eliab Naturinda demanded intervention in the fast-expanding mobile money lending market, while chairman Nkunyingi highlighted complaints of banks aggressively deducting money from customer accounts for recovery costs.
BoU representatives defended their record, pointing to mandatory consumer guidelines.
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