Former Post Bank Uganda Managing Director, Stephen Mukweli, has been cleared of all criminal charges.
The charges were about his alleged payment of over two hundred and ninety-two million shillings in commission during the bank’s bid for the Social Assistance Grants for Empowerment (SAGE) project.
The High Court’s Anti-Corruption Division, presided over by Justice Jane Okuo Kajuga on Wednesday, concluded that the prosecution failed to prove any element of criminality on the part of Mukweli or the other officials who had been jointly charged with him.
The case has been on since 2016, when Post Bank sought to secure the contract for managing SAGE payments under the Ministry of Gender, Labour and Social Development.
During preparations for the bid, businessman Jude Muhereza Kachoboye was engaged by the bank as a commission agent.
The prosecution alleged that senior officials of the Business Growth Department, together with the bank’s top leadership, irregularly initiated, approved, and executed a commission payment to him after the bank’s successful bid.
Mukweli, as Managing Director, was accused of authorising the payment.
Alex Kayaayo and Fred Samuel Wasike were alleged to have irregularly forwarded the requisition for approval, while Gilbert Nuwamanya was accused of improperly initiating it.
Jackson Mwesigwa, then General Manager Finance, was said to have irregularly processed and effected the payment. All six accused, including Kachoboye, later faced an additional count of conspiracy to defraud.
Seventeen prosecution witnesses were called, and numerous documents were tendered to support the allegations. At the close of the prosecution’s case, the court found a prima facie case and required all six accused persons to defend themselves. They elected to make unsworn statements and did not call witnesses.
Lady Justice Kajuga said that she had carefully reviewed each of the offences.
Regarding the alleged abuse of office, the judge said the law required the prosecution to prove that the accused acted arbitrarily in a manner prejudicial to the interests of Post Bank. The evidence, however, showed that the engagement of Kachoboye was openly discussed within the bank, particularly within the Business Growth Department and the executive committee. The arrangement was neither secret nor unilateral. Emails, discussions, and the eventual agency agreement demonstrated that the bank had collectively agreed to seek his services as part of its bid strategy.
On the charge of causing financial loss, the judge pointed out that the prosecution had to establish that the accused knowingly or recklessly caused the bank to suffer loss. This claim was contradicted by evidence presented in court. Records showed that Post Bank’s participation in the SAGE programme earned the institution more than Shs 8 billion by 2019, far exceeding the commission that had been paid out. The judge reasoned that a payment made in the course of conducting business, and one that ultimately contributed to substantial financial gain, could not reasonably be characterised as a loss.
She further observed that any administrative lapses that might have occurred did not meet the legal threshold for criminal liability, as the prosecution had not proved the existence of fraudulent intent.
On the final charge, conspiracy to defraud the court has noted that the law required proof that two or more persons agreed to pursue a fraudulent or deceitful objective. Justice Kajuga found no such evidence.
“While it was clear that the accused held discussions and agreed to hire Kachoboye as a commission agent, it is the court’s decision that there was nothing to indicate that the arrangement was designed to cheat the bank or the government. The Court said the prosecution’s suggestion that the payment was fraudulent was unsupported by the documents and testimony presented at trial”
Having considered the totality of the evidence, Justice Kajuga concluded that none of the essential ingredients of the offences had been proved. Her findings aligned with the opinions of the gentleman and lady assessor, both of whom advised that the accused should be acquitted. She therefore entered verdicts of not guilty on all counts for all six defendants.
The court ordered that all bail money and securities posted by the accused be refunded, and all sureties were discharged. The court also informed the parties of their right to appeal within fourteen days.
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