Trial of lawyer charged with sh1b electronic fraud resumes

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The trial of a city lawyer from KAAB Advocates, who faces fraud charges involving $286,910 (approximately shillings one billion), is scheduled to resume today, Thursday.

The Nakasero-based Anti-Corruption Court, presided over by Justice Jane Okuo Kajuga, will hear the trial of Absolom Kato. The court scheduled the hearing earlier this year after the prosecution informed it that inquiries into the matter were complete.

The prosecution, led by State Attorney Bruce Twongirwe from the Office of the Director of Public Prosecutions (ODPP), informed the court that the state is ready to prosecute the accused.

Prosecution’s Case

Kato is facing charges of electronic fraud under Section 19 of the Computer Misuse Act of 2011 and money laundering under Sections 3(e)(g), 116, and 136 of the Money Laundering Act of 2014.

Electronic fraud carries a sentence of 15 years or a fine not exceeding shillings 7.2 million, or both, while the offence of money laundering under Section 3 of the Anti-Money Laundering Act carries a sentence of 15 years in jail or a fine not exceeding two billion shillings, or both.

It is alleged that between July 2022 and April 2023, Kato, along with others still at large, made communications through a computer network in Kampala with the intent to secure unlawful gain. They allegedly obtained $286,910 (about sh1b) from the directors of M/S Ascend Group in Qatar.

The prosecution alleges that Kato obtained the money under the pretext that the funds were required by the Government of Uganda as performance security fees for a contract to construct six technical model schools in Wakiso, Kasanda, Pader, Garuga, Nampungwe, and Busunju, whereas not.

Regarding the charge of money laundering, the prosecution further alleges that between June 2022 and April 2023, Kato, while practicing as a lawyer at Exim Bank in Nakasero, Kampala, and at KAAB Advocates' office at Mabirizi Complex, allegedly benefitted from suspected proceeds of crime amounting to $286,910 (about sh1b).

The funds were allegedly funnelled through his law firm's account number 0010013643, held at Exim Bank.

The prosecution further stated that Kato received and accessed the money, which was fraudulently obtained from M/S Ascend Group under the guise of a purported procurement process initiated by the Government of Uganda. However, the state said the procurement process was not legitimate.

He denied the charges and is out on bail.

The case was investigated by police officers attached to the State House Anti-Corruption Unit. Established on December 10, 2018, to coordinate citizen complaints regarding corruption, the unit is currently headed by Brig. Gen. Henry Isoke.