SACCOS’ sh5.8b case to be heard in Kaliro High Court

_____________

The case where three officials of Kaliro district local government accused of money laundering and causing financial loss to the tune of sh5.8b, will be heard in a criminal session in the Kaliro High Court.

The case involves chief finance officer Godfrey Mutome, accountant John Wabirwe and human resource officer Rebecca Kwagala who are accused of causing loss to the Government. 

Mutome, Wabwire, and Kwagala are facing charges including embezzlement under section 19 of the Anti-Corruption Act 2009, money laundering as per section 3(b) and 136(1)(a) of the Money Laundering Act 2013, and causing financial loss under section 20 of the Anti-Corruption Act 2009. Kwagala is the only one facing the charge of causing financial. 

Justice Lawrence Gidudu, head of the Anti-Corruption Division of the High Court located at Nakasero in Kampala, said the hearing will take place in Kaliro on June 18, 19, 20 and 21. 

While adjourning the case on April 9, 2024, Gidudu stated that the proceedings would take place in Kaliro where the majority of the witnesses are located. 

Meanwhile, Gidudu rejected the request by the accused persons not to transfer the case to Kaliro. The accused had expressed concerns that the media in Kaliro would be biased against them. 

Gidudu in response to the application stated that the court does not extend invitations to the media for coverage of the proceedings, rather, they attend at their own discretion. He added that the court cannot prohibit their attendance, as they are not formally invited by the court. 

Prosecution’s case

Regarding the charge of embezzlement, it is alleged that between October 2014 to July 2022 at Kaliro while employed as chief finance officer and accountant respectively at Kaliro district local Government stole sh5.8b belonging to their employer. 

It is alleged that the accused persons disguised the funds as loan deductions that was borrowed from Kaliro Civil Servants’ SACCOS whereas not. 

It is alleged that Mutome and Wabwire laundered that money when they further disguised the source of sh5b which was transferred from the Kaliro district local government account to the Kaliro Civil Servant SACCOS claiming it was a loan yet they knew the fund was a proceed of crime.

Prosecution said Kwagala while employed as the human resource at Kaliro district local government fraudulently originated invoices and allegedly created a factious account to steal money from Kaliro district local government yet she knew that such omission would cause a loss of sh4.4b. All the accused denied the charges and they are out on bail.

What the law says

A person found guilty of embezzlement is liable to up to 14 years or a fine of sh6.7m or both.

Under section 3 of the Anti-Money Laundering Act, any person convicted of the offence of money laundering is liable to 15 years imprisonment or a fine not exceeding sh2b.

The offence of causing financial loss elicits 14 years in jail or a fine not exceeding sh6.7m.