Uganda’s widening anti-corruption crackdown has taken a dramatic turn after authorities arrested a district engineer linked to a UGX 600 million road scandal in Kamuli, exposing what officials describe as “ghost projects” that never existed on the ground.
Local Government Minister Balaam Ateenyi confirmed the arrest of Eng. Mufumba Daniel in Mbale following months of evading authorities, describing the development as a major breakthrough in the ongoing investigations.
“Earlier this year, in January 2026, I passed information to the State House Anti-Corruption Unit regarding the alleged embezzlement of over UGX 600 million earmarked for road construction and rehabilitation in Kamuli District,” Balaam said.
According to the minister, the funds—intended to improve road infrastructure during the 2025/2026 financial year—were allegedly diverted through a private company, Raven Knights Ltd, under suspicious circumstances.
“The funds are alleged to have been fraudulently processed by district officials through Raven Knights Ltd, a company whose directors are closely linked to the district engineer and believed to have been under his control,” he added.
Investigators say the scheme involved senior district officials, including former Chief Administrative Officer Mukiibi Nasser and Chief Finance Officer Kifuuse Alex, who have already been arrested.
The company’s listed directors—reportedly relatives of the engineer—have since gone into hiding.
“Investigations indicate that the engineer requisitioned funds through the company for road works that were never executed, while approvals were granted by the CAO and CFO,” Balaam stated.
Authorities further revealed that part of the money was allegedly transferred directly to the engineer, raising concerns about accountability and oversight within the district’s financial systems.
The suspect had reportedly attempted to evade arrest by applying for a transfer from Kamuli District to Mbale City.
While the district initially declined the request, a court process later enabled his transfer, allowing him to temporarily avoid capture.
“This morning, acting on intelligence, the State House Anti-Corruption Unit successfully arrested Eng. Mufumba Daniel in Mbale. He is expected to be arraigned before court shortly,” Balaam confirmed.
The minister commended the Anti-Corruption Unit led by Brig. Gen. Henry Isoke and other security agencies for their role in the operation.
“The fight against corruption is gaining momentum. No one is above the law, and those who steal public resources will be held accountable,” he said.