Kaliro district officials guilty in sh5.8 billion fraud case

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The Anti-Corruption Court sitting at the Jinja High Court has convicted two officials from Kaliro district Local Government over charges of money laundering and causing a financial loss of sh5.8 billion.

On March 23, 2026, Lawrence Gidudu convicted Chief Finance Officer Godfrey Mutome and Accountant John Wabwire and subsequently cancelled their bail, awaiting sentence.

However, Justice Gidudu acquitted Human Resource Officer Rebecca Kwagala of the charge of causing financial loss, stating that there was no evidence linking her to the offence.

Gidudu stated that the prosecution had proved beyond a reasonable doubt that Mutome and Wabwire caused the financial loss and laundered the funds by disguising it as a loan.

Gidudu said he will sentence the convicts on March 24, 2026, after hearing submissions from both sides.

Prosecution’s case

The prosecution, led by Inspectorate officer Phillip Munaba from the Inspectorate of Government (IGG), stated that between October 2014 and July 2022, in Kaliro district, the convicts, while employed as Chief Finance Officer and Accountant respectively at Kaliro district Local Government, caused a financial loss of sh5.8 billion to their employer.

Prosecution said that the convicts disguised the funds as loan deductions that were borrowed from Kaliro Civil Servants’ Sacco, whereas not.

It is alleged that Mutome and Wabwire laundered that money when they further disguised the source of sh5 billion, which was transferred from Kaliro district local government account to Kaliro Civil Servant Sacco, claiming it was a loan, yet they knew the fund was proceeds of crime.

What the law says

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 sh2 billion. The offence of causing financial loss elicits 14 years in jail or a fine not exceeding sh6.7million.

In addition, a person convicted under any provision of the Anti-Corruption Act is barred from holding public office for a period of 10 years.