Businessman charged in sh1b fraud case denied bail

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The Anti-Corruption Court in Nakasero has denied bail to a city businessman accused of obtaining over sh1 billion from an investor by false pretence and money laundering in connection with a purported presidential schools project.

Justice Jane Okuo Kajuga, on April 27, 2026, declined to grant bail to Gilbert Banafayo, ruling that she was not satisfied that the sureties presented met the required legal standards.

“This application fails for lack of sufficient sureties, essentially for the applicant’s failure to prove their competence to pay bond sums that court may impose. The applicant may, if he finds better sureties or secures the required evidence present them to court without have to a fresh application,” Kajuga said.

Through his lawyer, Isah Ogomba, Banafayo stated that he is of advanced age and has a fixed place of abode. He argued that he would not interfere with ongoing investigations if granted bail.

He further submitted that he had substantial sureties and suffers from a health condition, which was certified by a medical doctor.

Senior state attorney Viola Tusingwire, from the Office of the Director of Public Prosecutions, opposed the bail application, arguing that the offences with which Banafayo is charged are grave in nature.

Tusingwire further contended that Banafayo did not provide any evidence to show that he cannot receive adequate medical treatment while in prison.

Prosecution’s case

The prosecution alleges that Bafanayo, together with others still at large, fraudulently obtained $286,910 (about sh1 billion) from M/S Ascend Group in Qatar through KAAB Advocates’ account at Exim Bank, by falsely claiming the funds were a performance security for the construction of six model technical schools under a presidential project.

He is also accused of obtaining an additional $19,950 (about sh75 million) through Mwebesa and Company Advocates’ account at dfcu Bank under similar false claims.

Court records further indicate that between July 2022 and April 2023, Bafanayo allegedly facilitated the transfer of over sh1 billion while knowing the funds were proceeds of crime and concealing their origin. He is also accused of impersonating officials, including presenting himself as “Albert,” a manager at Sky Link International.

Magistrate Asiimwe also did not allow Banafayo to take his plea, saying that the Anti-Corruption Court lacks jurisdiction to handle the matter due to the money laundering charge, which is triable by the High Court.

Earlier, lawyer Absolom Kato of KAAB Advocates was also charged in connection with the same alleged fraud scheme and is currently undergoing trial at the Anti-Corruption Division of the High Court before Justice David Makumbi, where he has already been found to have a case to answer.

Kato faces charges including electronic fraud and money laundering, with prosecution alleging that he benefited from suspected proceeds of crime amounting to $286,910 through his law firm’s account.

Kato is out on bail and is awaiting his defence.