Kaliro officials sh5.8b fraud case verdict set for March 20

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The Anti-Corruption Court in Nakasero is set to deliver its verdict in a case involving three officials from Kaliro district local government, accused of money laundering and causing a financial loss of sh5.8b.

Justice Lawrence Gidudu is expected to deliver the judgment on Friday (March 20).

The case involves chief finance officer Godfrey Mutome, accountant John Wabwire, and human resource officer Rebecca Kwagala, who face charges related to the alleged financial loss to the government.

The trio ​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 facing charges of causing financial loss alone.

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, Mutome and Wabwire stole sh5.8b belonging to their employer.

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

It is alleged that they 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 Sacco, claiming it was a loan, yet they knew the fund was proceeds of crime.

Prosecution said Kwagala, while employed as the human resource officer at Kaliro district local government, fraudulently originated invoices and allegedly created a fictitious account to steal money from Kaliro district local government, yet she knew that such omission would cause loss of sh4.4b.

All the accused denied the charges, and they are out on bail.

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

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.