Court clears three businessmen linked to terrorism

The High Court in Kampala has unfrozen 34 bank accounts involving $358,824,655 (sh1trillion) that had been linked to terrorism and money laundering charges.

Judge Andrew Bashaija ordered that bank accounts that the Director of Public Prosecutions (DPP) said were being used as proxy to launder money to finance terrorism be unfrozen and allow to operate immediately.

"A consequential order doth issue ordering the lifting of the freezing of the respective applicants' bank accounts in Bank of Africa, Equity Bank, Stanbic Bank, Diamond Trust Bank, KCB Bank, and Barclays Bank," Bashaija said.

Court noted that the charges of terrorism and money laundering were preferred without a complainant after they had been cleared by the Police and Financial Intelligence Authority (FIA).

The judge said the DPP's power is not to investigate but rather to prosecute adding that the office of the DPP has no power to use its office to hound people.

Bashaija, in his ruling said, the DPP like other agencies must act with fairness and transparency because the Constitution does not give his DPP power to act arbitrarily.

The bank accounts had been blocked by the Anti-Corruption Court over claims that they were being used to launder money.

The accounts holders Bashir Ali Jumale, 56, an Ethiopian, Omar Sheikh Ali Hilowle, 38, a Somali and Abudulkadir Omar Abdulahi, 56, filed an application in which they sought unfreezing of their companies' accounts after they were blocked for nearly a year.

Court ruled that the decisions by the DPP to charge and prosecute the trio was arrived at illegally because there was no charge and caution statement recorded from the accused adding that it was illegal. Court also awarded costs to the three businessmen.

"The decision to charge the applicants without taking charge and caution statement from them would be fatal to the proceedings, in the circumstances as it is in breach of the constitutional right to a fair hearing and rule of natural justice, "Justice Bashaija said.

Bashaija also issued an order restraining the DPP from charging or prosecution the applicants with alleged money laundering under criminal case number 51 of 2019 at the Anti-Corruption Court or any other charges arising from the same allegations.

He added that, "An order doth issue that the applicants shall be free to access and freely operate their respective account accounts in the banks named,"

Police clearance

The court noted that there was high handiness to charge the trio especially after police made a report to DPP that there was no evidence linking them to any activity of terrorism and money laundering.

Bashaija agreed with complainants' lawyer Joseph Matsiko who argued that the trio had been clear by both the police and Chieftaincy of Military Intelligence (CMI)

"Decision to charge and prosecute the (applicants) Bashir Ali Jumale, Omar Sheikh Ali Hilowle, and Abudulkadir Omar Abdulahi when there is no complaint, no investigation report implicating them, when the police actually cleared them of all suspicions and even CMI had cleared the applicants of criminal activities the DPP's decision fall nothing short of abuse of legal process," court ruled.

Charges

Court also cleared six forex bureaus that were linked to money laundering of the charges.

The DPP had preferred charges of money laundering against, Sundus forex bureaus, Haleel Commodity Ltd, Victory Group of Companies Ltd, Qemat Al Najah General Trading Ltd, City Love General Trading Ltd and Hilowle General Trading Ltd, all located at King Fahad Plaza in Kampala, activity that is outlawed in Uganda

In July this year, Judge Lawrence Gidudu issued an order to freeze the bank accounts after office of the DPP applied to court saying police is still investigating the holders of the accounts over various charges. The order to freeze the accounts was to stay inforce of six months from July25.

It is alleged that Jumale Hilowle and Abudulkadir and others who are still at large between 2015 and 2018 at King Fahad Plaza intentionally laundered money on the bank accounts of Sundus and money transfer Ltd, yet they knew such funds to be proceeds of crime.

Prosecution said the directors of the companies in their capacities knowingly allowed their money remitting services (bureaus) to be used to facilitate money launderin