Sh15b pension fraud case hits snag

The sh15b pension case has hit a snag after court was informed that lawyers for the accused persons were not in attendance.

On Thursday, after waiting for more than two hours, the accused persons including the three former employees of the Ministry of Public Service and city lawyer, Bob Kasango asked for an adjournment.

They told the state prosecutors that they cannot proceed with the case when their lawyers are absent.

The case was coming up for further hearing of the state's final submissions.

Jimmy Lwamafa, former permanent Secretary, Christopher Obey, former Principal Accountant, Stephen Kiwanuka Kunsa, former commissioner pensions, all employees of the ministry and, Kasango, are facing several counts of diversion of public resources, fraud, conspiracy and abuse of office.

According to prosecution the sh15.4b was paid to Kasango's defunct law firm Hall & Partners in the two financial years of 2011/ 2012 and 2012/2013, as payment for legal fees and costs.

Prosecution evidence states that the money paid to the law firm was meant for payment of pensions and gratuity.

While giving background of the case, Josephine Namatovu, a senior principal state attorney, said that when retrenched 6,337 civil servants sued government, the Attorney General agreed to pay them sh7.3b.

This consent prompted them to petition court for costs and damages. The court set the matter for taxation, but the process did not take place because the advocate they presented was not the counsel that was in the courts record.

Namatovu said that although the bill of costs was never taxed, sh15.4b was paid by the ministry of Public Service to Kasango's law firm as payment for legal fees and costs.

She said Lwamafa, Obey and Kunsa disguised the law firm as a pensioner to process and effect the payment using money they got from the consolidated fund.

On Thursday, the state was expected to continue with its submissions on the case but they were forced to adjourn the matter due to the absence of defence lawyers, John Isabirye and Evans Ochieng. They represent Lwamafa and Kunsa, respectively.

Lwamafa, Obey and Kunsa, are currently in jail serving a sentence of 7, 10 and 5 years, respectively, for diverting sh88.2b pension cash. They were sentenced by the same court last year.

The court's deputy registrar, Susan Kanyange has adjourned the case to September 13.