Ex-KCC employees ordered to refund over sh1.5b

The Court of Appeal has confirmed a judgment in which the High Court ordered four former employees of the defunct Kampala City Council (KCC) and their lawyers to refund over sh1.5b, saying that they fraudulently obtained the money.

The court also directed the Director of Public Prosecutions (DPP) and the Law Council to ascertain whether or not the four former KCC employees and their lawyers are criminally liable.

Justices Kenneth Kakuru, Fred Egonda-Ntende and Simon Byabakama Mugenyi presided over the court.

The three-justice quorum unanimously ruled that the judgment from which the former employees together with their lawyers extracted a decree requiring to attach KCCA's bank accounts in Stanbic Bank (Uganda) Ltd and DFCU Bank Ltd, from which they were paid a total of sh1,566,256,698, was a forgery and misrepresentation.

Johnson Mugisha, Regina Nankya, John Buwembo and James Mutumba, who were represented by Justin Ssemuyaba together with Andrew Bwengye, sought permission to appeal against a judgment made by the then high court judge, now Justice of Appeal Court, Elizabeth Musoke.

They argued that the Court of Appeal had powers to allow them, on its own motion, to present their appeal, since they had no automatic right of appeal against the high court decision in the case.

In her judgment, they sought to appeal against; Justice Elizabeth Musoke remarked that a serious matter of illegality had been brought to her attention where the registrar issued orders to attach the monies yet there was no judgment or decree to base himself on.

"So, the court was duty-bound to protect the sanctity of its actions. The process of obtaining those orders was wrong from the very beginning," she added.

"This court cannot sanction illegal and fraudulent transaction perpetuated by the applicants and their counsel. We agree with the decision of the then high court judge Elizabeth Musoke, now Justice of the Court of Appeal/Constitutional Court that the garnishee proceedings were a nullity and; the resultant order was invalid from the beginning.

The money obtained by the applicants, resulting from the said proceedings must be returned by the applicants and; for those, who have since deceased, by their estate. Kampala Capital City Authority (KCCA) is at liberty to recover the said money through court process.

The registrar of this court is hereby directed to serve a copy of this ruling and that of Justice Elizabeth Musoke that was referred to above upon the Director of Public Prosecutions and the Secretary to the Law Council for them to ascertain whether or not the applicants and their counsel are criminally culpable for the matters raised herein," the court ruled.

It was further remarked that an application of that nature to succeed, the applicants must show to the satisfaction of the court that the intended appeal has likelihood of success, which was not the case in this matter.

The court noted that high court registrar Isaac Muwata of the execution and bailiffs division issued the orders for the applicants to attach the monies in order to safeguard their right to appeal not withstanding that they had first filed an application in the high court against KCCA and orders in the civil division seeking leave to appeal against Justice Musoke's decision, but which Justice Stephen Musota dismissed.

Ssemuyaba had submitted that the monies the former KCC group employees were ordered to refund were paid under an attachment (garnishee) order issued by high court registrar Isaac Muwata following an application.