State House Anti-Corruption unit busts sh689m bank fraud scheme

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KABALE

A 33-year-old businessman based in Nankuwade, Bulenga in Wakiso District has been charged and remanded for allegedly forging credentials to fraudulently obtain garnishee orders, enabling him to withdraw sh689,750,300 from a DFCU Bank account belonging to another businessman.

Prosecution from the State House Anti-Corruption Unit allege that Gerald Ngabirano, along with others still at large, forged a national identity card and a Memorandum of Understanding on January 26, 2025, in Kabale District. The forged documents falsely indicated that Stephen Karekezi had borrowed sh800m from them. The accused then presented these fabricated documents, along with Karekezi’s DFCU Bank account details, before Kabale High Court.

Satisfied with the documents, Kabale High Court Deputy Registrar, Kenneth Tumwebaze, issued a court order allowing the withdrawal of funds from Karekezi’s account. 

But upon realizing the fraudulent activity, Karekezi lodged a complaint with the State House Anti-Corruption Unit, leading to Ngabirano’s arrest.

On Friday, Ngabirano was transported from Kampala to Kabale, where he was presented before the Chief Magistrate’s Court. He was charged with four counts, including forgery of an official document contrary to Section 326 of the Penal Code Act Cap 128, forgery contrary to Sections 319, 322(a), and 324, and two counts of uttering false documents contrary to Sections 328 and 324 of the same Act.

Ngabirano pleaded not guilty to all charges. Kabale Senior Resident State Attorney, Julie Nanjunju, requested an adjournment, stating that investigations were still ongoing. Chief Magistrate, Derrick Byamugisha, remanded Ngabirano to Ndorwa Government Prison until March 4, 2025.

State House Anti-Corruption Unit spokesperson, Mariam Natasha, confirmed that Ngabirano’s actions caused financial loss to Karekezi. She further revealed that His Worship, Tumwebaze, is under investigation and will face the law if found culpable.

Gerald Ngabirano being escorted to Kabale Chief Magistrates Court on Friday. (Photo by Job Namanya)

“We managed to stop this fraudulent transaction in time and instructed the bank to freeze the account. Our investigations indicate that Ngabirano did not act alone. We are actively searching for his accomplices, who will be prosecuted once apprehended,” Natasha stated.

LC2 Chairperson Remanded for Assault

In a separate case, the same court also remanded Rutare Naturinda Amon, the LC2 Chairperson of Kitojo Parish in Rwamucucu sub-county, to Ndorwa Government Prison until March 4, 2025. His charges and bail application will be heard on that date.

Rutare was first arraigned before court on Tuesday, February 25, 2025, where he was formally charged with assault and causing grievous harm. Despite pleading not guilty, he was remanded and ordered to reappear in court on Friday, February 28, 2025, for further proceedings.

During his appearance before Kabale Chief Magistrate Derrick Byamugisha, the court determined that more time was needed to conclude the case. Prosecution, led by Senior Resident State Attorney Julie Nanjunju, stated that Rutare, together with Ronald Kitariko—who is still on the run—assaulted Mugarura Innocent and Muhereza Peter at Rushebeya Trading Centre on February 14, 2025, during President Yoweri Museveni’s rally at Rushebeya Playground.

The victims claim the attack was politically motivated, as they were accused of not supporting Rukiga District Woman MP, Caroline Kamusiime Muhwezi. One of the complainants, Peter Niwahereza, welcomed the court’s decision to remand Rutare, expressing hope for justice.

Among those present in court were Rwamucucu sub-county LC3 Chairperson Eddy Mugisha, along with Rutare’s relatives and friends, who closely followed the proceedings. Rutare will remain in Ndorwa Government Prison until March 4, 2025, when the court is expected to deliver its ruling.