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The Deputy Inspector General of Government (IGG) Anne Twinomugisha Muhairwe has ordered for the arrest of two Rakai district local government officials for allegedly causing government sh638m loss through salary fraud.

Muhairwe ordered for the arrest of Rose Yawe, the Rakai principal human resource officer and Aaron Kayinga, the senior human resource officer on April 5, 2024.

According to the Inspectorate of Government (IG), the duo was allegedly involved in a payroll fraud which caused a financial loss of sh638m.

Under Section 20 (1) of the Anti-Corruption Act, 2009, the offence of causing financial loss, attracts a maximum sentence of 14-years imprisonment, upon conviction.

The Deputy IGG, unearthed the rot in the district during a session held with the officials from both Kyotera and Rakai district local governments.

Muhairwe was addressing the officials on the issues of fraud in the payroll system, mismanagement of pension, victimisation of staff, and shoddy works on public projects.

She issued the directive at a time when Bugiri district officials were charged for allegedly embezzling sh1.2b in fictitious salary arrears, during the first phase of the COVID-19 pandemic. The officials are currently out on bail.

They are Ezaruku Kazimiro, 59, a former chief administrative officer (CAO), Mustapher Nyende, 59, the Bugiri district chief finance officer; Abdallah Waiswa, 52, a senior accountant; Atoire Minsa,51, a senior account assistant; and Fred Bazibu, 31, an assistant accountant.

Others are Henry Kabulo, 58, the district education officer; Haruna Kamba, 50, the Bugiri district deputy CAO; Paul Moses Isiko, 56, the production officer, Fred Ikaaba, 54, the district engineer and Muhamed Kyondha, the Bugiri district planner.

Prosecution led by State Attorney Sylvia Nabirye alleges that the accused persons, between March 2019 and December 2022, in Bugiri District Local Government, irregularly initiated, validated, and approved payment of fictitious salary arrears amounting to sh1.2b to various employees of the district, knowing or having reason to believe that their actions would cause financial loss to the Government.