Trial of tax agent involved in sh177m tax fraud case flops

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The trial of a former tax agent accused of making a false statement to a tax officer in connection with a shillings 177 million business transaction has stalled after two key prosecution witnesses failed to turn up.

The trial of Constantine Okwi, 40, a former tax agent with PAT MAC Uganda Ltd was on Wednesday, August 6, 2025, deferred after the prosecution informed court that the witnesses were absent.

Okwi is facing six counts of making false statements to a tax officer contrary to Section 58(1)(a) of the Tax Procedures Act, 2014.

The offence of making false statements to a tax officer, contrary to Section 58(1)(a) of the Tax Procedures Act, 2014, attracts two years’ imprisonment, 48 currency points or both. A currency point is equivalent to sh20,000, translating to a total of sh960,000.

Allan Nkoyoyo, an officer in charge of prosecution from the Uganda Revenue Authority (URA), told the Nakasero-based Anti-Corruption Court presided over by principal grade one Magistrate Christopher Opit that witnesses could not appear in court because of an urgent engagement that required them to attend to.

Nkoyoyo stated that he had lined up two witnesses: Mathias Nsonga, a director at PAT MAC Uganda Ltd, and Jackline Mutoni, a banker. Mutoni had requested to appear at midday, which was not convenient for the court, while Nsonga was attending to one of his employees who had been involved in an accident. He asked court for another hearing date, promising to re-summon both witnesses and to close the prosecution’s case after their testimonies.

“Your worship, I pray for another hearing date to re-summon the witnesses. I intend to close my case after their testimonies,” Nkoyoyo said.

He added that the witnesses are willing to testify but, due to unforeseen circumstances, they were unable to appear in court.

Lawyer Vianney Sewanyana opposed the adjournment, arguing that the case had dragged on for too long. He noted that the case had already been delayed twice due to the prosecution’s failure to present witnesses.

He said Okwi has been travelling from Pallisa district each time he is required to attend court, and the repeated delays are taking a toll on him.

Okwi had been charged alongside Mathias Nsonga, a director at PAT MAC Uganda Ltd, who pleaded guilty and has since been turned into a prosecution witness.

Magistrate Opit granted the prosecution’s request and adjourned the case to September 4,2025, to enable the state to produce its witnesses.

Charges against Okwi

The prosecution alleges that in November 2018, while acting as an agent of PAT MAC Uganda Limited in Jinja district, Okwi together with Nsonga made false declarations for purchases, purporting that the company had bought goods from Silva Hawk with a principal tax of sh65.5m.

It is further alleged that Okwi and Nsonga knowingly made a false declaration, claiming that the company had purchased goods worth sh66.8m from Kukubu International Limited, with a principal tax of sh32m.

The prosecution contends that in December 2018, in Jinja district, the duo again falsely claimed to have purchased goods from Silva Hawk Limited, incurring a principal tax of sh16.1m, despite knowing the declaration was false.

In another count, the prosecution alleges that Okwi and Nsonga, while serving as a director and tax agent of PAT MAC Uganda Ltd, respectively, falsely claimed the company had purchased goods with a principal tax amount of shillings 19.9 million.

It is further alleged that in March 2019, still in Jinja district, the accused made yet another false declaration, claiming that goods had been purchased from Kakubu International Ltd, attracting a principal tax of 19 million.

According to the prosecution, in May 2019, the duo also made a false declaration for the purchase of goods from Kakubuzi International Limited with principal of shillings 24.4 million.

Okwi denied the charges and is currently out on bail.