Kaliro district sh5.8b fraud case referred to Principal Judge

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The case involving three officials from the Kaliro District Local Government, who are accused of money laundering and causing a financial loss of sh5.8 billion, has been deferred and referred to the office of the Principal Judge for further guidance.

On May 26, 2025, the Anti-Corruption Court in Nakasero, presided over by Justice Michael Elubu, deferred the case against chief finance officer Godfrey Mutome, accountant John Wabwire, and human resource officer Rebecca Kwagala, who are accused of causing financial loss to the government.

The adjournment followed a request by defence lawyers David Kaggwa and Daniel Lubogo, who asked the court to allow the former head of the Anti-Corruption Court, Justice Lawrence Gidudu, to continue hearing the case. Justice Gidudu was recently transferred to Jinja High Court.

Earlier this year, Justice Lawrence Gidudu ruled that the accused have a case to answer and must defend themselves against all the charges. He left the court before completing the hearing of the case.

Justice Elubu, who replaced Gidudu, informed the lawyers to write to the Principal Judge to seek permission before proceeding. Currently, Justice Jane Kajuga is serving as the Acting Principal Judge. The case has since been adjourned to July 16, 2025, awaiting a response from the Principal Judge.

Inspectorate officers from the Inspectorate of Government, led by Philip Munaba, informed the court that they were ready for the defence hearing.

Mutome, Wabwire, and Kwagala are facing charges including embezzlement under Section 19 of the Anti-Corruption Act 2009, money laundering as per Section 3(b) and 136(1)(a) of the Money Laundering Act 2013, and causing financial loss under Section 20 of the Anti-Corruption Act 2009. Kwagala is facing charges of causing financial loss alone.

Prosecution’s case

Regarding the charge of embezzlement, it is alleged that between October 2014 and July 2022, while employed as chief finance officer and accountant, respectively, at Kaliro District Local Government, the accused stole sh5.8 billion belonging to their employer.

It is alleged that the accused persons disguised the funds as loan deductions that were borrowed from the Kaliro Civil Servants’ SACCO, whereas not.

It is alleged that Mutome and Wabwire laundered the money by further disguising the source of sh5 billion, which was transferred from the Kaliro District Local Government account to the Kaliro Civil Servants’ SACCO, claiming it was a loan, yet they knew the funds were proceeds of crime.

Prosecution said Kwagala, while employed as the human resource officer at Kaliro District Local Government, fraudulently originated invoices and allegedly created a fictitious account to steal money from Kaliro District Local Government, yet she knew that such an omission would cause a loss of sh4.4 billion. All the accused denied the charges, and they are out on bail.

What the law says

A person found guilty of embezzlement is liable to up to 14 years in prison, or a fine of sh6.7 million, or both.

Under Section 3 of the Anti-Money Laundering Act, any person convicted of the offence of money laundering is liable to 15 years’ imprisonment or a fine not exceeding sh2 billion. The offence of causing financial loss carries a penalty of up to 14 years in prison or a fine not exceeding sh6.7 million.