John Mawerere, the former head of the Uganda Revenue Authority (URA) IT department, has been arrested in connection with a major tax fraud scandal that has resulted in a staggering loss of UGX 70 billion.
Mawerere’s arrest follows an investigation linking him to a syndicate involving clearing agents and junior IT officers, all engaged in manipulating tax data systems for personal gain.
The fraudulent scheme involved two clearing agents, identified only as Kato and Katimbo, who conspired with Mawerere and his junior accomplices to alter entries in URA’s Automated System for Customs Data (ASYCUDA World).
This system is responsible for assessing taxes on imported goods, including vehicles.
According to sources, Mawerere’s team would delete or under-declare tax entries for high-value items such as vehicles, allowing car owners to avoid paying the full tax amount in exchange for kickbacks.
One source revealed an example of the scale of the corruption, detailing how taxes for a 2019 Range Rover, normally requiring shs 150 million, were reduced to just shs 30 million after manipulation by the IT experts.
In return, the car owner would pay the syndicate shs 50 million, ensuring a substantial profit for the fraudulent operatives.
This tax fraud did not stop at individual cars. Investigations revealed that entire containers of goods were processed and reverted, effectively allowing millions in taxes to be siphoned off.
The full scope of the operation only came to light after an internal audit exposed a massive shortfall of over shs 70 billion.
Commissioner General John Rujoki ordered an immediate investigation by URA’s intelligence department to uncover the extent of the fraud.
The operation, which had been running for an extended period, is a fresh blow to URA, which has been struggling with corruption for years.
In fact, URA’s corruption problems have been so pervasive that President Yoweri Museveni had to establish a special unit to investigate and oversee the organization’s operations.
This unit is led by David Kalemera, who himself had previously faced corruption charges, though sources claim his conviction was a result of a political witch-hunt.
Currently, John Mawerere is being held in Luzira prison, while the clearing agents Kato and Katimbo remain on the run, along with other IT officials implicated in the scandal.
Despite the gravity of the situation, URA spokesperson Robert Kalumba, when contacted for comment, claimed he was unaware of the ongoing investigation but promised to revert with more information. By press time, Kalumba had yet to provide any further details.
This scandal once again highlights the ongoing struggle within URA to tackle corruption, despite multiple interventions aimed at cleaning up the organization. With billions of shillings lost, the pressure is on URA to tighten its systems and restore public confidence in its ability to manage the nation’s tax revenue.
