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    How Businessman Shumuk Lost Shs50bn Legal Battle Against Attorney General Over Tycoon Katatunba Multibillion Estate…



    Tycoon Shumuk

    Esta Nambayo the judge of the High Court Civil Division has directed controversial city businessman Mukesh Shukla Shumuk to pay costs and damages to Attorney General Kiryowa Kiwanuka after dismissing his Shs50bn case resulting from his business rivalry with late Bonny Mwebesa Katatumba.

    Shumuk through his lawyers led the Court to order President Yoweri Kaguta Museveni’s government through the Attorney General to compensate him Shs50bn for malicious prosecution.

    Shumuk told Court that in early 2013, Katatumba made a complaint to the police stating that he had conspired with one Hassan G.M Wandera to murder him.

    He added that the allegation against him was therefore conspiracy to commit murder and police upon investigations of the matter, made a report to the Director of Public Prosecutions (DPP) who sanctioned the charges.

    He stated that on the 8th January, 2013, through his lawyer Augustine Kibuka Musoke, he was summoned to police at Kampala Metropolitan Police Headquarters in connection to the charges of conspiracy to commit a felony.

    He said that the following day, on 9th January, 2013 when he reported to the police pursuant to the summons, he was promptly arrested and detained at Central Police Station Kampala for the entire day until he was driven to Makindye Chief Magistrate’s Court where is was arraigned and charged on the count of Conspiracy to murder Katatumba.

    He added that he denied the charges and State produced a number of witnesses to pin him.

    However, before the conclusion of the case, the DPP withdrew the criminal charges against him without giving reasons why he did so and he based on that ground to insist that he was maliciously prosecuted.

    In his defense, the Attorney General through Clare Atukunda stated that Police is mandated under Article 212 of the 1995 Constitution of Uganda Sections 4 (1) & 23 of the Police Act, Cap 303 to preserve law and order and to enforce the laws of Uganda.

    She noted that in enforcing these laws, Police officers have the power to arrest any person even without a warrant or order of Court if there is a reasonable cause to suspect that the person has committed or is about to commit a cognisable offence as provided under S. 10 of the Criminal Procedure Code Act, Cap 116.

    The DPP later based on Shumuk’s  submissions during cross-examination where he admited that Police did not act on its own accord to arrest him but was moved to do so after they received a complaint from the late Katatumba and as such, there was sufficient reason to cause suspicion that the he could have committed a cognisable/chargeable offence.

    She added that the implication of Shumuk’s evidence is that his arrest was lawful and asked the Court to dismiss his case.

    She boasted that there were no essential ingredients to prove malicious prosecution and submitted that the prosecution of the plaintiff was based on reasonable grounds that the prosecutors would secure a conviction based on the evidence gathered from the witnesses by the investigating police officers.

    She explained that Katatumba, the complainant, lost interest in the case and requested the DPP to withdraw the charges against the Plaintiff resulting in discontinuation of proceedings against the plaintiff and his co-accused and was exercising her powers within the law.

    She explained that Katatumba wrote to DPP requesting her to withdraw the charges from Shumuk explaining that they were trying to settle those cases out of court and that Shumk had requested that Katatumba first drops the criminal charges against him before any negotiations could go on.

    In that letter, Katatumba said that it is in that spirit that he decided to drop the charges against the accused persons and requested the DPP to discontinue the charges against Shumuk.

    In her ruling, judge Nambayo explained that, “I have already established that there was reasonable cause for the Police and the DPP to arrest and charge the Plaintiff in court. I find that the Plaintiff has not demonstrated that there was malice by the officers of the Defendant in the process of his arrest and arraignment before court. This ground therefore also fails,” she noted.

    She added that, “In the whole therefore, I find that the Plaintiff has failed to prove a case of malicious prosecution against him by the officers of the Defendant. I would find no merit in this case which I do hereby dismiss from court and order that the Plaintiff pays costs to the Defendant.”

    The Administrators of the estate of the late Katatumba led by Angella Katatumba are still fighting for a multibillion property which Shumuk claims to have bought.

    Shumuk also claims to have entered into an agreement to sell land, Blacklines House in Kampala and Hotel Diplomat in Muyenga a claim that the Katatumbas protest.

    They insist that Shumuk forged their father’s signature which he used to try to grab their father’s estate.


    By Grapevine reporter




    Stanbic Bank In Trouble, Client Petitions Court After She Was Defrauded Of Shs68m Via Flexi Pay…



    Stanbic Bank CEO Anne Jjuuko whose bank is under fire

    Nakku Joweria a resident of Kyebando has sued Stanbic Bank Uganda limited for failing in its duty of protecting her saving account leading to defrauding her of shillings 68 million which was withdrawn from her account in a period of 24 hours through Flexi pay an application she had never registered for.

    In a court case filed before the Commercial division of the High Court of Uganda and coming up for directions in the registrar Christa Namutebi’s chambers, on the 24th June, 2024 at 9:40am, Nakku Joweria through his lawyers of Kimanje Nsibambi Advocates contends that between 7th and 8th February, 2023, there was unauthorized withdrawal of 68 million shillings from her savings account No. 903000026244 via the Flexi Pay Banking, a platform of Stanbic Bank and a total of 28 unauthorized transactions were conducted by fraudsters who fraudulently accessed her account undetected by the bank.

    She questions how a savings account which had a transaction limit was significantly exceeded during the unauthorized and undetected fraudulent transactions which led to her losing her’ money.

    “Our client has been a loyal client of Stanbic bank since 2001 way before the implementation of the FlexiPay system and at no point did she sign up for or activate the flexi pay on her savings account. The 28 unauthorized withdrawals from our clients account using four unknown Airtel lines raises serious questions and/ or lapses on the part of the bank for which we hold the bank specifically liable for the loss since it was in a better position to detect and prevent this fraud had it exercised reasonable care to detect these suspicious 28 unauthorized transactions that took place within 24 hours on a savings account that was rarely operated by our client,” reads the documents in parts.

    She also questions the effectiveness of the bank’s authentication protocols with their flexi pay system, effectiveness of the transaction monitoring to the extent of allowing 28 unauthorized transactions within 24 hours using four unknown Airtel lines and significantly exceeding the account limit.

    Nakku wants court to direct Stanbic Bank to reimburse 68 million to her account that was fraudulently withdrawn and pay her the costs and damages.

    On 6th February 2023, Nakku Joweria lost her phones to the robbers on her way to work at around 9pm. She reported the incident to police at 9am and to the telecom companies on the 7th February 2023.

    However, the telecom companies MTN and Airtel couldn’t process the new simcards because she had misplaced her original National Identity card.

    The robbers used her MTN number to open up a wallet on the Flexi pay which number had four other Airtel numbers that don’t belong to her which they used to make 28 unauthorized withdraws of 68 million shillings from her Stanbic bank saving account on the 7th and 8th February in a space of only 24 hours.

    When she went to withdraw some money from her account on the 6th, March 2023 that’s when she realized that her money was fraudulently withdrawn from her account.

    She wrote to the bank manager complaining about the matter and the bank promised to do thorough investigations to reveal how the money was withdrawn by the fraudsters.

    Through her lawyers of Kimanje Nsibambi Advocates, she wrote a demand notice to Stanbic Bank manager to reimburse her money since it was their weakness and fault for failure to efficiently protect her account.

    The bank through Twine Arnold, the senior legal advisor, Risk and Dispute Management wrote back with an out of court settlement request.

    However, the bank had proposed to reimburse only 34 million out of the 68 million on the premise that the settlement shall not be taken as admission of liability by any of the parties, a proposal she rejected and instead thought for legal redress in the commercial court.


    By Sengooba Alirabaki


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    Minister Kabanda Panics As Traders Plan To Front Ssekitto To Battle Her For Kampala Central MP Seat…



    KACITA'S Issa Ssekitto and Minister Minsa Kabanda

    Kampala City Traders Association (KACITA) spokesperson Issa Ssekitto has confirmed that come 2026, he is pondering contesting for the position of Kampala Central Division Member of Parliament as an independent.

    Ssekitto revealed that his decision was based on the number of requests he has received from desperate traders who think that the only way to fight bad policies and laws made against them is to have their own in the parliament to argue their case.

    It should be noted that when traders met President Museveni in May 2024 at Kololo independence ground, they warned legislators in parliament who have been passing laws against them that they are going to sponsor their own candidates against them come 2026.

    They claimed that the legislators and other leaders who they showered with votes in the previous elections have betrayed them and it is high time they take over the country’s leadership.

    Sources inside KACITA told theGrapevine that Nagenda Musoke their chairperson also plans to stand for a Member of Parliament in one of the constituents in Mukono district.

    John Kabanda also plans to stand as councilor representing Kampala Central Division on the Lord Mayor’s Council.

    The traders insist that Kampala city and Metropolitan senior minister Hajjat Minsa Kabanda has not helped them as a minister and accuse her of sidelining with their tormentors, especially the Uganda Revenue Authority (URA).

    Since 2023, Minister Kabanda has been conducting clandestine political mobilization to replace Muhammad Nsereko who declared that he is not going to contest in 2026.

    Because of Kabanda’s declaration, Bobi Wine’s elder brother Fred Nyanzi Ssentamu shifted his interest from contesting for Kampala Central MP Seat to Lord Mayor fearing that chances are high that Kabanda will defeat him.

    Traders want parliament to remove EFRIS and reduce taxes on commodities especially imported items.

    However, President Museveni assured them that his government will not accept their prayers because they are against the country’s development.


    By Hadijjah Namagembe


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    Bank Bosses In Trouble For Allowing Sanctioned M7 Gov’t Official To Access Money On Her Account..



    L-R: Agnes Nandutu, Goretti Kitutu and Speaker Anita Among were all recently sanctioned

    The Western powers have kicked off investigation into allegations that bank bosses in Kampala allowed President Yoweri Kaguta Museveni’s sanctioned government officials to access and use their financial services.

    Sources in one of the top banks intimated to theGrapevine that their boss has been summoned at their bank headquarters in the United Kingdom to record a statement detailing how the incident happened and why.

    Sources claim that this senior government official was informed early that President Museveni was briefed about her sanctions and when she asked her lawyers what the sanctions meant, they quickly advised her with immediate effect to rush to the bank and withdraw her money which she did.

    “She came herself and withdrew her money and went with it, but we don’t know whether our bosses were already informed about the sanctions,” a source said.

    This bank source narrated to us a scenario where the former Inspector General of Police Gen. Edward Kale Kayihura’s close relative was denied the opportunity to open a bank account in their bank on grounds that his father was sanctioned and their bank was not allowed to do any financial business with him.

    Recently, the State Minister for Lands Dr. Sam Mayanja revealed that retired High Court Judge Moses Mukiibi told him that because of the sanctions, he could no longer access his money in the banks.

    He added that they asked President Museveni to intervene.

    However, the judiciary last week issued a statement noting that Justice Mukiibi is receiving his retirement benefits as a retired judge.

    Veteran journalist Joseph Tamale Mirundi explained that western powers give a sanctioned official six months to clear whatever they have in their respective countries including repatriating their relatives from their countries.

    But Alex Waiswa Mufumbiro, the National Unity Platform (NUP) deputy spokesperson said that the sanctions take immediate effect and all the money on bank accounts and properties of the sanctioned persons in foreign countries is frozen immediately when the sanctions are announced.

    Mufumbiro’s explanation was supported by a powerful security officer who told theGrapevine that recently, President Museveni posted one of his sanctioned security chief to one of the neighbouring countries; however this officer failed to access his bank account and when he tried to fix his ATM card into the ATM machine, it was swallowed by the machine and he immediately called Museveni pleading with him to withdraw him from the said country.

    Recently, the United Kingdom sanctioned Annet Anita Among the speakers of parliament, Agnes Nandutu the former State Minister for Karamoja affairs and Mary Goretti Kitutu the former senior minister for Karamoja affairs.

    Other government officials who were sanctioned include; Gen. Kayihura, Lt. Gen. Peter Elwelu, Maj. Gen. Abel Kandiho, Maj. Gen. Sabiiti Muzeyi, Maj. Gen. Don Nabasa and a number of others including members of parliament.


    By Sengooba Alirabaki


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