Tax evasion case: Company director, accountant freed on bail

KAMPALA - The director and accountant of M-Lukka Associates Limited accused of providing false information to a Uganda Revenue Authority (URA) officer regarding sh885.3 million in taxes, have been granted bail.

The director of the IT services company is John Festus Muwonge, a 42-year-old resident of Katabi in Wakiso district.

He was jointly charged with company accountant Richard Opedes, 32, who resides in Kyaliwajjala, Namugongo in Wakiso.

Muwonge was charged with two counts of making false statements to a tax officer, while Opedes faces one count of aiding a tax offence, contrary to Section 69(1) of the Tax Procedures Code Act, Cap 343.

On Friday (March 21), the two appeared before the Anti-Corruption Court in Nakasero, presided over by Grade One Magistrate Esther Asiimwe, who granted them bail, pending the hearing of the case.

Muwonge was granted a cash bail of sh5 million while Opedes was required to execute a cash bail of sh4 million. 

Additionally, Muwonge’s sureties were bonded at sh200 million (non-cash) while Opedes’ sureties were bonded at sh100 million (non-cash).

Magistrate Asiimwe stated that the sureties presented were substantial and that the court could rely on them in granting bail.

Representing the accused, lawyers Tony Tumukunde and Godfrey Kifudde assured court that their clients would not abscond from trial if released on bail. 

They further argued that the accused are presumed innocent until proven guilty. 

Prosecution’s case

The prosecution team is led by Thomas Davis Lomuria, a supervisor in charge of prosecution at URA, and Stella Nayebare, an officer in charge of prosecution at URA.

The prosecutors allege that Muwonge, as director of M-Lukka Associates Limited, knowingly made false statements to a tax officer concerning Value Added Tax (VAT) returns for December 2020.

Specifically, he purported that the company had purchased goods worth sh852 million, inclusive of VAT, from Rojos Logistics Limited, whereas not.

In the second count, prosecution purports that Muwonge as a director of the same company made a false statement to a tax officer claiming to have made purchases of goods valued at sh33.1 million from TSE Consult Uganda, including VAT returns.

Regarding the charge against Opedes, prosecution alleges that during the year 2020 in Wakiso district being a person in charge of purchases for M-Lukka Associates Limited, he aided Muwonge in making false statements to a tax officer in relation to VAT returns for the month of December 2020 purporting to have purchased goods from Rojos logistics Limited. 

The accused denied the charges.

Lomuria informed court that investigations into the case were still ongoing. 
He requested an adjournment to allow the prosecution to update the court on the status of the investigations.