MTN appeals sh2.3 billion court award to former employee
MTN, in its notice of appeal, however, maintains that the judgment raises fundamental legal questions regarding the respective roles of private complainants, investigators and prosecutors in Uganda's criminal justice system.
The company contends that once it discovered suspected fraud involving billions of shillings on its mobile money platform, it fulfilled its legal duty by reporting the matter to the Uganda Police Force for investigation.
KAMPALA - Six days after the High Court ordered MTN Uganda to pay more than Sh2.3 billion to its former employee, Richard Mwami, for malicious prosecution, the telecommunications giant has formally kicked off the appellate process by filing a notice of appeal and requesting certified copies of the court record.
Documents filed on July 2 by MTN's lawyers, Kampala Associated Advocates, seen by New Vision Online, show that the company intends to challenge the June 26 judgment of Acting Justice Isaac Bonny Teko, which found MTN liable for maliciously prosecuting Mwami over the 2012 mobile money fraud case.
The High Court awarded Mwami Shs1.809 billion in special damages, Shs400 million in general damages and Shs100 million in exemplary damages, together with interest and costs, after concluding that MTN had been the "moving force" behind the criminal proceedings despite the company's own forensic audit reportedly not implicating him.
According to sources familiar with the company's legal position, MTN's appeal will principally challenge the finding that it was legally responsible for Mwami's prosecution.
The company contends that once it discovered suspected fraud involving billions of shillings on its mobile money platform, it fulfilled its legal duty by reporting the matter to the Uganda Police Force for investigation.
Thereafter, the investigation, assessment of evidence, sanctioning of charges and prosecution of the suspect became the constitutional responsibility of the State through the Director of Public Prosecutions (DPP), an office that exercises independent prosecutorial powers.
In the disputed judgment, Justice Teko concluded that MTN did more than merely report suspected fraud.
It was on that basis that the court entered judgment against MTN while striking out the Attorney General from the suit after finding the claim against the Government had been filed outside the statutory limitation period.
Following the ruling, MTN issued a brief statement saying it was carefully studying the judgment with its legal advisers.
"We are studying the judgment carefully with our legal advisors and are considering all available options, including an appeal. MTN Uganda remains committed to the highest standards of corporate governance and to conducting its business in accordance with the law," the company said.
The filing of the Notice of Appeal now confirms that MTN intends to challenge the decision before the Court of Appeal, setting the stage for what is expected to be one of the country's most closely watched corporate litigation battles.