Post Bank case over sh292m loss resumes on May 13

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The trial in a case where Postbank Uganda Ltd lost sh292m in relation to an alleged fraudulent commission agent, resumes May 13.

The prosecution is expected to lead more witnesses before the Nakasero-based Anti-Corruption Court on May 13, 2024.

Justice Jane Okuo Kajuga is scheduled to hear the testimonies of other prosecution witnesses in connection to the case.

The accused are managing director Stephen Mukhweli, executive director of credit business growth Alex Kayaayo, and head of business growth Fred Samuel Wasike. Others are sales manager Gilbert Nuwamanya, general manager of finance and administration Jackson Mwesigwa, and commissioner Jude Muhereza Kacoobye.

Prosecution’s case

Prosecution, led by Stanely Baine, alleges that on June 15, 2016, Mukhweli, while serving as the managing director at Post Bank in Kampala district, abused his authority by irregularly approving payment of sh292m to Muhereza.

It is claimed that on June 14, 2016, Kayaayo, as the executive director of credit and business growth, abused his authority by irregularly authorising the payment of sh292m to Muhereza as a commission under SAGE.

Prosecution purports that the payees were not entitled to this payment. The accused denied the charges.

The SAGE scheme initially targeted senior citizens of 65 years and above under the Expanding Social Protection Programme, aiming to facilitate access to basic services and initiate income-generating activities, piloted in 20 districts.

What the law says

Under Section 11(1) of the Anti-Corruption Court Act, a person found guilty of the offence of abuse of office faces seven years' imprisonment upon conviction, a fine not exceeding sh1.3m, or both.

As per Section 20(1) of the same act, a person convicted of causing financial loss is liable to a fine not exceeding sh4.8m, a term of imprisonment not exceeding 14 years, or both.

The offence of conspiracy to defraud under Section 309 of the Penal Code carries five years’ imprisonment upon conviction.