Company directors seek plea bargain in sh718m embezzlement case

KAMPALA - Two company directors and an employee, accused of embezzling shilling 718 million from a construction firm, have applied for plea bargain before the Nakasero-based Anti-Corruption Court.

The funds were meant for the procurement of construction materials for Hoima International Airport.

A plea bargain is a negotiated arrangement in criminal proceedings where an accused person agrees to plead guilty to the charge in exchange for concessions from the prosecution, such as reduced charges or a lighter sentence.

The accused are SBC (Uganda) Limited purchasing officer Daniel Kiseka Mutalanga, Imani Med Estates director Joseph Ntambi and James Ssetimba Sekajolo, the director of Ssetimba James Nuts and Bolts Hardware and Timsey Hardware.

They are battling charges of embezzlement, dealing with suspect property and conspiracy to defraud.

Under the Anti-Corruption Act, embezzlement carries a maximum sentence of 14 years in prison upon conviction, while dealing with suspect property attracts a seven-year jail term. Conspiracy to defraud, under the Penal Code Act, carries a maximum sentence of three years in prison.

The trio are expected to appear before Justice Jane Okuo Kajuga on April 22 to complete the plea bargain agreement with Senior State Attorney Nicholas Kawooya from the Office of the Director of Public Prosecutions.

Prosecution alleges that Mutalanga, between October 2022 and February 2024, stole sh718m from SBC (Uganda) Limited, the money he accessed by virtue of his position as purchasing officer.

It is further alleged that Ntambi, in the same period, received sh384.9m on his account number 1046202486506 in the name of Imani Med Estates Limited at Equity Bank, Entebbe branch, knowing or having reason to believe the funds were proceeds of embezzlement.

Sekajolo is accused of receiving shilling 112 million on his account number 01670074251 in the name of Timsey Hardware Limited at DFCU bank in Kampala, as well as sh5.5m, under similar circumstances, knowing or having reason to believe the funds were proceeds of embezzlement.

Prosecution contends that the accused persons and others still at large conspired to defraud SBC (Uganda) Limited of the money by causing payments for supplies that were never delivered.

Court records indicate that SBC (Uganda) Limited, a subsidiary of SBI International Limited, is based in Bugolobi, Kampala, and is currently involved in the construction of Hoima International Airport.

Background

SBC (Uganda) Limited investigations show that on February 6, 2024, Mutalanga submitted local purchase orders and payment vouchers to the company’s operations manager, Yariv Ofek, for approval.

However, Ofek reportedly detected irregularities in the signature of the project manager, Mihail Gorachinov, prompting further scrutiny. Mutalanga allegedly retrieved the documents and failed to return them before ceasing to report to work.

An internal audit later uncovered forged signatures and fake stamp impressions on procurement documents, which did not match those of the company’s senior managers, including the chief finance officer and managing director.

Following the anomaly, the matter was reported to Police, who commenced investigations. Handwriting experts analysed the questioned documents and confirmed irregularities.

Police also obtained court orders to inspect bank accounts linked to suspected suppliers and individuals and discovered that the payments were backed by forged documents for supplies that were never delivered.

The investigators further established that on two occasions, the funds received by Ntambi from the forged local purchase orders were withdrawn and delivered to Mutalanga through an intermediary in Mutundwe, Kampala.