Police net PDM hacker

According to the authorities, a total of Shs5 million had been swindled from five beneficiaries.

SIRONKO | Police in Sironko have apprehended a man accused of hacking into the Parish Development Model (PDM) beneficiaries' digital wallets and diverting funds into his account.

The matter was brought to the attention of authorities by Peter Gumonye of Bumadyemu PDM SACCO after Shs1 million PDM disbursement from his SACCO leader was instantly siphoned from his “Wendi” mobile wallet.

"I received notifications indicating a change in my PIN and subsequent transfer of 1,996,000 to Eddy Magomu,”Gumonye said.

Magomu is neither a PDM beneficiary nor a resident of Sironko district. According to the authorities, a total of Shs5 million had been swindled from five beneficiaries.

However, Magomu denies involvement in the fraudulent activities, shifting blame to one Hellen Nambozo, who she says secured a SIM card under his name.

“I gave the lady the line (sim card), but I have no idea how she accessed the money,” he said.

Bugisu regional PDM coordinator, Jackline Nabulo, voiced concern over a recurring pattern of fraudulent incidents within the programme, including one where the SACCO chairperson sent Shs7 million  to residents in Bulambuli District instead of the intended beneficiaries.

“At that time we apprehended the parish chief and SACCO leaders who were made to repay the funds,” authorities said.

At least 12 beneficiaries have so far been affected specifically those using the "Wendi" digital wallet.

Sironko Resident District Commissioner Denis Mulwaniregha acknowledged the benefits of the Wendi app in facilitating financial transactions but emphasised the need for improvements to address security gaps and prevent potential misuse of funds by SACCO chairpersons.

“The chairperson is free to alter the Chief Administrative Officer’s payment instructions to pay his other friends, relatives and in-laws,” said Balwaniegha.

While using the app, all the funds are transferred to the SACCO chairperson for subsequent disbursement to individual beneficiaries in violation of the PDM guidelines that requires the bank to wire money directly to individual beneficiary's account.

“Our policy says pay Jackie Shs1 million, then if you decide to give the SACCO chairperson all the money then the problem is in between the two parties, the bank and Wendi," Nabulo said.

Wendi is a third-party mobile wallet used by Post Bank to channel funds to PDM beneficiaries’ phones.

Its objective was to ease access to the funds and to reduce travel expenses and long queues at the far-away bank branch in Mbale City.

The arrest of the suspect marks a step forward in ensuring accountability and safeguarding the interests of PDM beneficiaries in Sironko.

The hacking incident has caused the authorities to halt further disbursement of the funds, affecting the beneficiaries who have to wait longer to execute their intended development projects.