Two top officials of the Uganda Liberal Teachers’ Union (ULITU) Sacco have been remanded to Luzira Prison on charges of defrauding the organisation of Shs2.7 billion in a fraudulent land deal.
Mr Evans Mutesasira Kaganizo, 53, the SACCO’s [chairperson], and Mr Hassan Esiungwa Maganda, 58, the general secretary, appeared before Buganda Road Court Chief Magistrate Ronald Kayizzi. They pleaded not guilty to charges of obtaining money by false pretence (Section 285 of the Penal Code Act) and conspiracy to defraud (Section 363 of the Penal Code Act).
Prosecutor Ivan Kyazze informed the court that investigations are ongoing.
Magistrate Kayizzi remanded the two until March 19 for their bail application hearing, as their lawyers stated they were unprepared to apply for bail immediately.
According to the charge sheet, between November and December 2024, in Kampala, Mr Esiungwa and others still at large allegedly obtained more than Shs1.3 billion from the ULITU Sacco by falsely claiming to sell them 500 acres of land in Block 3, Kabwoya/Kyangwali sub-counties. The prosecution further alleges that Mr Esiungwa, Mr Mutesasira, and others conspired to defraud the Sacco of Shs2.7 billion by inflating the land purchase cost.
Court documents reveal that the State House Anti-Corruption Unit received a whistleblower complaint on November 5, 2024, alleging misappropriation of the Shs6.6 billion presidential grant intended for teachers’ welfare during the 2023 National Teacher’s Day celebrations.
It is alleged that more than Shs3 billion was spent by the Sacco leaders within a month, without proper procedures.
“Upon receiving Shs6.6 billion on November 18, 2024, without member resolution or Registrar of Cooperatives approval, the leaders acquired properties, including: a Sacco house in Kira for Shs1.35 billion, 500 acres of land in Kyangwali, Hoima, for Shs2.75 billion, and a Toyota Hilux (UBR 9385) at an inflated cost of Shs234 million,” court documents state.
Investigations revealed that the land does not exist, and the Sacco entered an agreement without verifying the subject matter. The land belongs to the Bunyoro Kingdom, and Maganda is only entitled to an equitable share upon land survey completion.
“On December 16, 2024, Shs1.37 billion was paid by ULITU into Esiungwa’s account, not Hansem Technical Services Limited, the vendor in the sale agreement,” court documents indicate.