By Spy Uganda
The hunt for a key suspect in the alleged theft of more than Shs600 million meant for road construction in Kamuli District has finally ended after the State House Anti-Corruption Unit (SH-ACU) arrested former District Engineer Mufumba Daniel, who had reportedly gone into hiding following his transfer from the district.
Mufumba was apprehended in Mbale City on Thursday morning after months on the run. His arrest marks a major breakthrough in investigations into a corruption racket that allegedly siphoned public funds intended for road construction and rehabilitation during the 2025/2026 financial year.
Following the arrest, Local Government Minister Balaam Barugahare applauded the State House Anti-Corruption Unit, led by Brig. Gen. Henry Isoke, for tracking down the suspect and pursuing the case despite months of evasion.
“I commend the Head of the State House Anti-Corruption Unit, Brig. Gen. Henry Isoke, and his team for their professionalism, persistence, and unwavering commitment to fighting corruption. I also applaud all the security agencies that worked together to ensure the suspect was brought to justice,” Balaam said in a statement released on Thursday.
According to the minister, he formally alerted the Anti-Corruption Unit in January 2026 after receiving information that hundreds of millions of shillings allocated for road works in Kamuli had been fraudulently diverted.
Investigators allege that the money was channelled through Raven Knights Ltd, a company officially registered under the names of the engineer’s sister and brother-in-law but believed to have been controlled by Mufumba himself.
The probe further established that the then Chief Administrative Officer, Mukiibi Nasser, and Chief Finance Officer, Kifuuse Alex, allegedly authorized payments for road projects that were either never undertaken or grossly exaggerated. Detectives say part of the money eventually found its way into accounts linked to the district engineer.
As investigations gathered momentum, the company directors reportedly disappeared, with their known telephone contacts becoming unreachable.
While the CAO and CFO were arrested earlier to face prosecution, Mufumba successfully sought a transfer to Mbale City. Although Kamuli District authorities initially opposed the transfer, a court ruling later allowed it, after which the engineer reportedly disappeared from public view, frustrating investigators for months.
His arrest is expected to strengthen the prosecution’s case as authorities move to recover the stolen public funds and establish the full extent of the alleged fraud network.
Mufumba is expected to be arraigned in court in the coming days.
The case has once again exposed the persistent challenge of corruption within local governments, where funds earmarked for essential public services such as roads continue to be lost through alleged collusion between public officials and private contractors. It also underscores the growing role of the State House Anti-Corruption Unit in pursuing high-profile corruption suspects who attempt to evade justice.
