MTN’s Uganda Mobile Money staff have reportedly been fired after investigations into a fraud that cost the firm an overwhelming USh15 billion (US$8 million).
The fraud, said to have occurred during the firm’s software upgrade of mobile money last year, MTN claims was an internal job.
MTN Uganda’s acting chief executive officer said the loopholes of the latest fraud were both internal and external as the thieves hacked into the mobile commerce system, which is only accessible to Mobile Money agents, and unclearly withdrew money from third-party banks where customers withdraw their cash using secret access codes.
A number of staff from the firm’s mobile money segment have since been fired including the former in charge of mobile money Richard Mwami.
Mwami who has already been sued however claims he was the whistleblower and has since sued the company for wrongful dismissal.
“My job was managing the agency distribution network not managing the finance,” Mwami says,
“Forensic teams came and investigated us and I was nowhere near the fraud. The fraud was brought to attention of management by me.”
The firm had earlier this year sent in investigators from its South African headquarters to investigate the fraud.
MTN further says the criminal charges process “is also at an advanced stage, and MTN Uganda is working with the relevant law enforcement agencies to bring those involved to justice.”
Nevertheless, the legal services head at the firm Anthony Katamba, says Mwami was held responsible as “it was some sort of negligence.”
MTN upgraded their system last year in order to deal with increasing customer and transactions. It is believed the fraudster took advantage of the upgrades to fleece the company.
The company however confirm its systems are now safe saying with further upgrades and modifications undertaken to increase its robustness, MTN is confident that it has brought the Mobile Money system to high levels of stability and security.
MTN Uganda Mobile Money was launched in 2009. It currently has more than 2 million of the 10 million mobile money of the 30 percent of the 10 million mobile phone subscribers in the country.
Other telcos with mobile money services include UTL’ m-sente, Warid’s W-pesa, Orange mobile money and Airtel money.
