Uganda v Baitwa and Another (Criminal Session 1 of 2019)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court acquitted both accused on charges of theft and conspiracy to defraud. The court held that theft occurred when money was fraudulently caused to move out of MTN (U) Ltd's bank account by its own employees, not when it was deposited into the accused's company account. The prosecution failed to prove beyond reasonable doubt that the accused directors participated in the theft or had knowledge of the fraud. The court found that the prosecution's failure to call key witnesses — employees of both MTN (U) Ltd and the accused's company who were directly involved in processing the fraudulent invoices — created a missing link that prevented the accused from being connected to the crime.
Outcome
Both accused acquitted and discharged; bail security to be refunded
Facts
Oscar Baitwa and Geoffrey Bihamaiso were brothers, shareholders, and directors of Three Ways Shipping Services Ltd, a clearing and forwarding company contracted by MTN (U) Ltd. Between 2009 and 2012, MTN (U) Ltd alleged that the company had been paid USD 3,800,000 based on 125 false invoices supported by fake airway bills and false delivery notes. Two MTN (U) Ltd employees — Naphtali Were (senior logistics officer) and John Paul Basabose (accounts payables officer) — processed payments using fictitious invoices purporting to be from the accused's company. The fake invoices were mixed with genuine ones to avoid detection. Payments were made in batches periodically. The accused were the only signatories to the company accounts where the funds were deposited. One MTN employee died during trial; the other pleaded guilty under a plea bargain and returned substantial amounts to MTN. Two employees of the accused's company were discharged after the DPP entered a Nolle Prosequi. The accused denied knowledge of the fraud, claimed they only learned of it when MTN complained, and stated they paid USD 300,000 to MTN in good faith and requested account reconciliation, which MTN refused.
Issues
- Whether the accused stole USD 3,800,000 from MTN (U) Ltd between 2009 and 2012.
- Whether the accused obtained money by false pretence from MTN (U) Ltd.
- Whether the accused conspired to defraud MTN (U) Ltd.
- At what stage did the theft occur — on the MTN (U) Ltd side or after the disputed funds had been credited to the accused's company accounts?
- Whether the accused participated in the theft under the doctrine of common intention.
- Whether the corporate veil should be lifted to hold the accused directors personally liable for funds received by their company.
Orders
- A1 and A2 are acquitted on the charges of theft in count one.
- A1 and A2 are acquitted on the charges of conspiracy to defraud in count two.
- Any security deposit to secure bail for A1 and A2 be refunded.
Rules and key headnotes
Legislation cited (7)
Cases cited (3)
- Woolmington v DPP [1935] AC 462
- Miller v Minister of Pensions [1947] 2 All ER 372
- Uganda v Jeff Lawrence Kiwanuka and 2 Others (Criminal Case No. 2 of 2017)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.