MTN’s Ugandan subsidiary has confirmed that staff had conspired to exploit a loophole in its mobile banking service and stole USh9 billion (US$3.5 million) from the company.
No customers lost any funds during the fraud which took place during a software upgrade to the service. The funds were taken from a ‘suspense account’, which was used when money was sent by a user, but the recipient was not identifiable.
The company has already sacked Richard Mwami, former head of public access and mobile money who has sued the company for wrongful dismissal. It also instigated procedures against a number of other unnamed staff.
‘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,’ the company said in a statement.
The company added that ‘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.’