An explosive letter purportedly signed by President Yoweri Museveni has placed the Ministry of Finance under intense scrutiny over the alleged diversion of US$14 million (about Shs51 billion) that was reportedly meant to settle Uganda’s loan obligations to the World Bank Group and the African Development Bank.
The letter, dated June 14, 2026, and addressed to Finance Minister Henry Musasizi, claims the President had received a Financial Intelligence Authority (FIA) report indicating that the money, earmarked to settle Uganda’s obligations to the World Bank Group and the African Development Bank (AfDB), was instead diverted to two foreign private companies identified as MJS International Ltd, London, UK, and Roadway Company Ltd, Japan.
“I demand a report of what has happened to this money, those who diverted it (stole it) and those who received it,” the letter reads.
Copies of the letter were allegedly sent to Vice President Jessica Alupo, Prime Minister Robinah Nabbanja, Chief of Defence Forces Gen. Muhoozi Kainerugaba, the Inspector General of Police, the Director General of the Internal Security Organisation, the Inspector General of Government, the Permanent Secretary and Secretary to the Treasury, and the Attorney General—an indication of the gravity with which the matter was reportedly being treated.
A potentially unprecedented financial scandal
If the allegations are confirmed, the case would rank among the largest suspected diversions of public funds in Uganda’s recent history.
Unlike conventional procurement scandals involving inflated contracts or ghost projects, the money in question was reportedly intended for servicing Uganda’s external debt—a critical obligation that directly affects the country’s international creditworthiness and relationships with major lenders.
Failure to honour debt repayments can trigger penalties, increase borrowing costs, undermine investor confidence and strain relations with multilateral development institutions.
Uganda has in recent years significantly expanded its public borrowing to finance infrastructure projects, including roads, electricity generation, oil-related investments and industrial parks. The country’s public debt has consequently risen sharply, making debt servicing one of the largest recurrent expenditures in the national budget.
Why the World Bank connection matters
The alleged diversion comes against the backdrop of an already complicated relationship between Uganda and the World Bank.
In 2023, the World Bank announced that it would pause consideration of new public financing for Uganda following the enactment of the Anti-Homosexuality Act. Existing projects continued, but the decision strained relations between Kampala and one of its biggest development financiers.
Since then, the Ugandan government has repeatedly emphasized its commitment to honouring existing financial obligations while seeking alternative financing from other development partners.
Any confirmed diversion of money intended for debt repayments would therefore raise difficult questions about internal financial controls within government.
Financial Intelligence Authority’s role
The letter specifically references a report from the Financial Intelligence Authority dated September 12, 2025.
The FIA is Uganda’s anti-money laundering agency tasked with tracking suspicious financial transactions, analysing financial intelligence and sharing information with investigative agencies.
Where suspicious cross-border transfers are detected, the Authority normally works alongside commercial banks, law enforcement agencies and international counterparts.
Should such a report exist, it could provide investigators with a detailed money trail identifying the origin of the funds, intermediary accounts and final beneficiaries.
Questions demanding answers
The emergence of the letter raises several unanswered questions:
- Was the US$14 million actually transferred?
- Which government entity authorised the payments?
- Were the payments made through the Bank of Uganda?
- Were the named foreign companies legitimate creditors or intermediaries?
- Have any officials been questioned?
- Has any of the money been recovered?
Perhaps most importantly, authorities have yet to publicly confirm whether the document itself is authentic.
Silence from key institutions
By Thursday evening, there had been no official statement from the Ministry of Finance, the Financial Intelligence Authority or State House confirming or denying the contents of the circulating letter.
Likewise, neither the World Bank nor the African Development Bank had publicly commented on the alleged diversion.
Should the allegations prove accurate, investigators would likely have to work with authorities in the United Kingdom and Japan to trace the movement of funds and determine whether any criminal offences occurred under international anti-money laundering laws.
A history of financial scandals
Uganda has experienced several major corruption scandals involving public funds over the past two decades, including the 2012 Office of the Prime Minister aid funds scandal, procurement controversies across various ministries, and irregular payments uncovered by the Auditor General.
Successive governments have pledged tougher action against corruption, while President Museveni has repeatedly described corruption as one of Uganda’s biggest enemies.
The language used in the leaked letter—particularly the instruction to identify “those who diverted it (stole it)”—suggests a determination to establish accountability if the allegations are substantiated.
