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    MTN, Three Ways Directors Shs.9.5bn Fraud Scandal Enters Final Stage After Top Judge Rules On Case To Answer…



    Geoffrey Baitwa one of the Managing Directors at Threeways Shipping Services (Group) Ltd.

    Justice Lawrence Gidudu the Head of the Anti-Corruption Court has directed Oscar Baitwa and Geoffrey Bihamaiso the Directors of the Jinja road based Three Ways Shipping Service Limited to defend themselves in the Shs9.5bn fraud case.

    The accused persons who are brothers are supposed to prove beyond reasonable doubt that they didn’t participate in the theft, conspiracy to defraud, obtain money by fraud and conspire to defraud Shs9.5bn as the Director for Public Prosecution (DPP) through Abigail Agaba claims.

    “The fact that the accused persons kept quiet from 2009 to 2012 while huge sums of dollars were coming in for no work done renders the accused liable as links in the chain. The two have a case to answer on all the accounts,” the nonsense judge ruled.

    According to court documents, MTN Uganda contracted Three Ways to provide forwarding and clearing services for its equipment sourced from overseas.

    In the course of business, MTN Uganda alleged that Three Ways had been paid money based on false invoices supported by fake airway bills.

    DPP claims that the accused persons connived with JP Bosabosa and Naphatali Were who were employees of MTN who pleaded guilty and asked to be allowed to negotiate with the complaint and pay some of the stolen money.

    DPP further dropped charges against Faridah Senkumba, Kafuko Wasswa who were employees of Three Ways who were earlier accused of processing the money which was paid in fraud.

    Agaba the lead prosecutor told court that Baitwa and Bihamaiso together with Oscar Baitwa Obusa were the principal signatories to the company’s bank accounts and were mandated holders of the accounts used to siphon money from MTN insisting that they participated by facilitating the exit of the stolen money.

    She added that the accused persons were the brain behind those activities of their company and were responsible for facilitating the theft of USD 3,800,000.

    She further submitted that the stolen money was moved electronically and was received by the accused’s company through their bank accounts and fraudulently processed by employees of MTN.

    She insists that the two accused persons are signatories to the said company bank accounts and benefited from the stolen money.

    “As regards the participation of the accused persons, Agaba referred to the testimony of Masanso, PW11, a fraud investigator who testified that he was called by the accused for a meeting over this case. He met them and they asked him to destroy evidence at a fee of USD 150,000 which he declined,” a judge stated.

    Agaba insisted that whether the invoices from Three Ways company were transmitted by flash disk or by email, the fact remains that they committed the offences by obtaining money without providing service to MTN.

    She told court that the entire fraud was discovered after MTN contracted Deloitte International company to do a forensic investigation according to supplier payment documents.

    However, Henry Kyalimpa the accused’s lawyer submitted that since there was a running contract between MTN and his client’s company, any money paid to the accused’s bank accounts was for service rendered.

    He told court that there was no evidence that any of the accused persons provided MTN with fictitious invoices to make payments and the DPP failed to connect the accused persons to the crime.

    He insisted that Naphtali, JP Bosabosa and all employees of MTN were the ones that processed payments from MTN, not his clients.

    Kyalimpa pinned Senkumba and Kafuko as the source of the fictitious invoices. Unfortunately, the DPP shielded them and they did not testify to implicate the accused persons.

    In conclusion, the judge stated that on the stage of a case to answer, court did not evaluate evidence to find if the accused are guilty or not.

    “It is not in dispute, at this stage, that money was processed fraudulently, using unregistered invoices from Three Ways company which were attached to bogus airway bills that were not issued by any airlines or endorsed by customs,” the judge stated.

    The judge discovered that the money under dispute is USD1,800,000 not USD 3,800,000 as MTN claims.


    By Grapevine Reporter



    Terra Solar Energy Swiss Boss, Girlfriend Dragged To Court Over Shs19bn Fraudulent Land Deal …



    Heimhofer's girlfriend Mariam Kajumba

    Swiss businessman David Ferdinand Heimhofer and his girlfriend Mariam Kajumba the properiator of Terra Solar Energy Limited together with the Commissioner Land Registration have been dragged to Court over a Shs19bn fraudulent land deal.

    City car dealer businessman Medad Osborn Twesigye, the proprietor of Testimony Motors Limited accuses the defendants and their company of fraudulently grabbing his land measuring 499.781 hectares comprised on Block 5 plots 623, 633 land at Kayera, Bugahya in Hoima district.

    In his suit filed at Hoima High Court, Twesigye through his lawyers led by Fred Muwema claim that in August of 2022, he was approached by a lawyer who introduced himself as Accram Luzinda and a land agent Jim Kibira who told him that they had a deal of selling his land to Ferdinand and his girlfriend.

    He later met the accused persons at Fairway Hotel Kampala where they confirmed to him that they were interested in his land since they had entered a deal with President Yoweri Kaguta Museveni’s government to start a solar energy project in Hoima.

    In his affidavit, Twesigye claimed that the accused persons requested him to first allow them to carry out a site survey of the land to confirm its ownership, size, soil conditions and accessibility which was done and the final report from the investigation was issued in October 2022.

    He explained that the defendants told him that they are ready to purchase his land under the names of Terra Sola Energy Limited.

    Swiss businessman David Ferdinand Heimhofer

    They even signed a Memorandum of Understanding to purchase the land at the cost of UD$5m and both parties agreed that the agreement should be valid for a period of 10 months with a two months extension.

    Twesigye explained that the said period was supposed to be used by the defendants to carry out a feasibility study to determine the suitability of the land for a solar power project which was done and the results were positive.

    They agreed that the defendants deposit to the plaintiff’s bank account a non-refundable fee of UD$100,000 as down payment before the purchase of the land was done.

    The payment was supposed to be done within 10 days from the date of signing the solar power implementation Agreement with President Museveni’s government.

    Twesigye claimed that in December 2022, the accused persons used the Memorandum of Understanding they signed with him to lodge a caveat on his land before even depositing the UD$100,000 on his bank account.

    He made a written complaint against the defendants in March 2023.

    He explained that the defendants wrote back explaining that they lodged a caveat to protect their interest in the land even though the government had delayed the process of signing the agreement with them to deposit the agreeable amount of money.

    They added that they had instructed their local engineers to conduct further studies to identify the grid capacity in Hoima and get the government to agree to the said study so as to trigger payment.

    He added that in May 2023, he instructed his lawyers to demand the defendants to remove the caveat registered on his land but they insisted that they could not remove the caveat because if they do, they were going to lose the money they had already used since they had already entered the deal.

    Twesigye told Court that in December 2023, a serious Arab investor approached him and told him that he has interest in his land.

    He added that this investor wanted to establish a sugar project.

    Twesigye narrated that he asked the defendants to remove the caveat but they refused which forced him to carry out due diligence to establish the legality of the company he was dealing with.

    In December 2023, he found out that it had paltry capital of Shs10,000,000 with no registered office or assets in Uganda.

    He further established that the company never conducts any business in Uganda as alleged by the defendants but they were using it to veil corporate personality as a mask to defraud him.

    He pleaded with court to declare that the defendants have no caveat-able interest on his land and also asked court to direct the Commissioner Land Registration to lift the caveat placed on his land.

    He also asked court to order the defendants to pay monetary compensation for lodgment of the impugned caveat on his land, general damages for material distress and inconvenience caused, exemplary damages, interest on any pecuniary award at 23% from December 2022 till the payments in full.

    The defendants have not yet filed their defense.


    By Hadijah Namagembe


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    Panicky Bitature, Wife Carol Fly Abroad As Court Of Appeal Sets Date To Seal Their Criminal Prosecution Fate Over Shs100bn Fraud…



    Businessman Patrick Bitature

    Troubled city tycoon Patrick Bitature and his wife Carol Bitature have travelled abroad after Court of Appeal Justice set date to seal their criminal prosecution fate in the Shs100bn fraud allegations.

    Bitature and his wife are expected to appear before Justice Hallen Obura of the Court of Appeal which also doubles as the Constitutional Court to hear their application where they are seeking permanent stay of the criminal charges slapped on them at Buganda Road Court.

    Their lawyers led by Brian Moogi and Anthony Bazira of Byenkya, Kihika and Company Advocates told court that their clients were not present in court but pleaded with the presiding justice to make her ruling before the end of this week.

    Moogi explained to Justice Obura that his client is under threat from the office of the Director of Public Prosecution (DPP) who informed Court that she took over the matter from private prosecutor Robert Kirunda and is ready to proceed with it.

    He revealed that the DPP wanted to embarrass their clients by formally bringing them into the dock, charging and remanding them to prison as criminals.

    Moogi explained to court that his clients had challenged the entire commercial agreement at the Commercial and Civil Division of the High Court insisting that it was illegal.

    He added that the Criminal Division of the High Court judge Rosette Kania didn’t give his clients the opportunity to defend themselves in the matter in which they had interest in.

    Instead they proceeded to determine it ex-part after dismissing their application to join the criminal matter Kirunda filed at the High Court challenging Buganda Road Court decision of dismissal on lack of jurisdiction.

    Justice Rosette Kania of the Criminal Division of the High Court ordered Buganda Road Court Chief Magistrate to re-instate the criminal charges against Bitature and wife after lawyer Kirunda the recognised agent and lawyer to South African based money lending company Vantage Mezzanine Fund 11 Partnership.

    Moogi told Court that Buganda Road Court issued criminal summons against his clients and they are expected to appear before Ronald Kayizzi, the Chief Magistrate, to answer the criminal charges.

    theGrapevine has exclusively learnt that the embattled businessman and his wife flew out of the country to the United States then proceed to the United Kingdom on a business trip.

    However, insiders close to the businessman said that they traveled abroad to get time to rest because they were under pressure and wanted some time alone to think about the future.

    “The man is panicking. He fears to be humiliated once taken to the dock with his wife to answer criminal charges. He pleaded on phone to Ebert Byenkya to help him join Moogi, after other lawyers refused to help him because they are demanding a lot of money from him which he currently doesn’t have even though he is willing to pay them,” a source said.

    Moses Muziki, the lawyer who represented Kirunda told Court that his client is also is out of the country in California, United States handling business issues.

    Muziki protested the application to stay the proceedings of the criminal prosecution against the businessman and wife, explaining that it was overtaken by events.

    He asked for the dismissal of the application with costs.

    He insisted that the applicant didn’t have the locus-standi to appeal against a decision where he was not a party noting that if he wanted to join the matter, his prayer would have been filed at the High Court Criminal Division before it was determined.

    Moogi pleaded to Court not to proceed with the application on Tuesday morning because he was not ready since Kirunda’s lawyers served him their defence in their application on that day in the morning.

    He explained that his defense is huge and they need time to make a rejoinder and also submissions at once.

    Justice Obura directed them to file and serve their rejoinder before the close of today and promised to deliver her ruling on Friday afternoon.

    Kirunda claims that Bitature and his wife in December 2014 at Diamond Trust Building along Kampala Road through their companies of Linda Properties, Elgon Terrace Ltd and Simba Telecom borrowed Shs38bn from Vantage Mezzanine Fund 11 Partnership and they offered their companies’ shares as security.

    He added that between 2019 and 2020, they both fraudulently altered shares of their companies with intent to defraud Vantage Mezzanine Fund 11 Partnership of about Shs101bn.


    By Sengooba Alirabaki


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    Top Court Bailiff In Trouble After Court Ordered Him To Vomit Shs650m, Be Prosecuted For Properties He Stole When Executing Court Directives…



    Justice Musa Ssekaana the Head of the Civil Division of the High Court has made a landmark judgment directing Fredrick Byatukoreire a Court bailiff practicing with T/A Shrew Solutions Limited to pay Shs.650m or be arrested with immediate effect to face criminal proceedings on the offence of theft.

    In his judgment, the judge noted that Court Bailiffs don’t have immunity as officers of court to carry out illegalities when executing court orders and directives.

    He agreed with Oliver Namatovu the director of Engeye Bakery Limited through her lawyers led by Ronald Kayondo that Byatukoreire did not follow the directives given to him by the Court Registrar when carrying out the said execution hence committing criminal offences.

    In her affidavit, Namatovu told Court that Byatukoreire was hired by the directors of Engano Millers Limited to recover Shs20, 700,000 from her.

    She explained that to her surprise, Byatukoreire extracted a warrant of attachment in which he stated items which were extremely low and then proceeded to attach items which were not mentioned in the warrant of attachment valued at Shs.269,350, 000.

    She told the Court that the execution was carried out without her presence or her agents and neither the Court Bailiff nor Engano Millers Limited Directors contacted her to inform her that the process to attach her properties because of the debt had kicked off.

    She revealed that the respondents ignored a court order which she had secured directing them to first go on site and inspect the items which she used as security when securing the said loan that should be attached but instead they proceeded to attach wrong items.

    Namatovu stated that immediately after learning that her properties were taken by Byatukoreire, she reported the matter to police and to the Registrar who authorized the exercise but she was not helped that is why she decided to petition the Civil Division of the High Court by lodging a suit against the court bailiff and Engano Millers Ltd.

    The bailiff was accused of attaching properties which included; A mixer valued at Shs 2,600,000/=, an oven valued at Shs119,000,000/=, a rotary diesel oven valued at Shs35,000,000/= and another oven valued at Shs.38,000,000/=.

    In his response, Engano Millers Limited through their lawyers led by George Kasiisa submitted that it does not dispute that the execution process was handled by a court bailiff as required by the law.

    He added that the said court bailiff was appointed by court as an officer of court not his client after the applicant failed to pay his money and court sanctioned execution; so she cannot say that it was illegal.

    Kasiisa further submitted that if the applicant had any issue with the execution, they ought to have filed the appropriate application before the executing court instead of them filing an application for revision and setting aside the execution.

    He told court that the applicant’s contention is on the conduct of the bailiff when he attached items not listed which to the applicant are of a higher value than those stated in the warrant.

    On the said ground, he cited Rule 16 (3) and 24 (1) of the Judicature (Court Bailiffs) Rules provides for how such issues should be resolved.

    He submitted that the applicant never moved court to review the value of the items, there was no valuation report upon which an inference of under valuation could be drawn and that in the circumstances, the applicant’s submission is lacking in material and merit which resulted in criminality.

    Even though Byatukoreire didn’t defend himself over the matter, Kasiisa claimed that if the applicant is aggrieved by the Bailiff’s conduct, she has recourse under Rule 24 (1) and could  lodge a complaint with the Chief Registrar insisting that his client had no role to play in the execution process and wait in anticipation to a closure of the execution when it could receive its fruit, hence prayed that the court find that the execution was legal.

    In his judgment, the judge stated that the applicant produced evidence to show that the property that was attached by the bailiff was of higher value than that stated in the warrant.

    He added that there was evidence to show that the bailiff  attached items which were not mentioned in the warrant of attachment valued at Shs269,350, 000/= and as result of which the complaints were made to police and the deputy registrar.

    “This is a serious allegation of over attachment. Unfortunately, the facts stated in the applicant’s affidavit against the 1st respondent were not rebutted. It is now settled law that where facts are sworn in an affidavit and they are not denied or rebutted by the opposite party, the presumption is that such facts are accepted,” the judge stated.

    The judge wondered why the bailiff showed evidence on court record that he adhered to follow the  process stipulated by law when executing court orders including filing a copy of the inventory of the attached property before the court.

    He bailiff did not return the warrant of attachment by the 31st of January, 2019 as directed by the court hence the judge observed that the bailiff’s conduct even after the attachment left a lot to be desired.

    ” From the above circumstances, I am of the view that the 1st respondent acted unlawfully and in bad good faith when carrying out the execution of EMA 3042 of 218 arising from Civil Suit No. 1071 of 2017.

    The 1st respondent vandalized the applicant’s property by uprooting the power cabling and water cooling system together with the other machinery and equipment not mentioned in the decree. An execution is irregular when any of the requirements of the rules of court or for the time being have not been complied with. This issue is therefore answered in the affirmative” the judge stated.

    The judge however exonerated Engano Millers Limited explaining that there is no evidence showing that there was connivance or colludes between the creditor judgement and the bailiff which resulted in unlawful execution.

    The judge wondered why when the bailiff was directed to return the attached property of the applicant he refused.

    He added that his refusal implied that he has converted the goods to his own use or sold them illegally.

    He explained that the actions of the bailiff were unreasonable, irregular and illegal and indeed an act of contempt against an order of the court.

    “It is impossible to overlook the extreme business disruption caused to the applicant by the actions and refusal to comply with the orders of this court to release the property/items in wrongful and illegal attachment. Punitive damages would be awarded against the 1st respondent of Shs100,000,000/=,” he ruled.

    He added, “This court has a duty to protect the unsuspecting public or judgment debtors from such criminals who disguise themselves as court bailiffs and brokers to stem out the rogue elements.”

    He was further directed him to pay the value of the wrongly and illegally attached property worth a total sum of Shs400,770,000/= to the applicant, to pay Shs20,700,000/= to Engano Millers Limited, pay Shs. 100,000,000/= as punitive damages.

    Justice Ssekaana further ordered that Byatukoreire be arrested and prosecuted for theft or conversion or any other related offences forthwith.

    He was ordered to pay an interest of 20% per annum on all the awards from the date of the ruling, pay costs of the application to the applicant and to Enganno Millers.


    By Sengooba Alirabaki


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