By Joseph Kiggundu
KAMPALA – The High Court has directed MTN Uganda Limited to compensate its former employee, Richard Mwami, with more than Shs2.3 billion after finding that the telecommunications company was responsible for actions that led to his wrongful prosecution in a major mobile money fraud case.
In a ruling delivered by Acting Justice Bonny Isaac Teko, the court determined that MTN played a significant role in initiating criminal proceedings against Mwami despite findings from earlier investigations that had cleared him of involvement in the loss of billions of shillings from the company’s mobile money platform.
The court awarded Mwami Shs1.809 billion in special damages, Shs400 million in general damages, and Shs100 million in exemplary damages. MTN was also ordered to pay interest on the award at a rate of 10 percent per year until the amount is fully settled, in addition to meeting the costs of the suit.
The Attorney General was removed from the proceedings after the court found that the claim against the government had been filed outside the legally prescribed time limits.
Court documents indicate that Mwami, who previously held senior management responsibilities at MTN, was among the first officials to identify unusual transactions within the company’s mobile money system in late 2011. Following his report, investigations were launched into the suspected fraud.
A forensic audit conducted shortly afterwards reportedly found no evidence linking him to the theft. However, the company later relied on information obtained from one of the suspects in the case to connect Mwami to the alleged fraud.
The court heard that the statement used against him had previously been rejected by the Anti-Corruption Court after concerns were raised about how it had been obtained. Justice Teko observed that MTN failed to sufficiently distance itself from the process through which the disputed evidence was secured.
The judge further ruled that there was no reasonable basis for pursuing criminal charges against Mwami, particularly in light of the forensic findings that had exonerated him. According to the judgment, the company’s conduct demonstrated malice and contributed significantly to the decision to prosecute him.
Evidence presented before the court showed that Mwami was arrested more than a year after the initial investigations and after other suspects had already been charged. He was detained and later remanded to prison while the case proceeded.
The former employee argued that the prosecution caused significant damage to his professional reputation and career prospects. He lost employment opportunities and spent more than two years attending court under strict bail conditions.
In December 2015, he was acquitted of all charges after the trial court found no evidence linking him to the fraud. The court at the time observed that he appeared to have been wrongly accused and could have been called as a witness instead of being prosecuted.
MTN Uganda had maintained that the prosecution was conducted independently by law enforcement agencies and prosecutors. However, the High Court concluded that the company’s actions substantially influenced the process that led to Mwami’s prosecution, making it liable for malicious prosecution.
Justice Teko noted that the award of exemplary damages was intended to serve as a warning against the misuse of criminal proceedings and to promote accountability where individuals are subjected to unjust prosecution.