Legal Firestorm: Details Why The Acquittal of ThreeWays Directors Has Sparked Outrage, Dismay, Bribery and Judicial Inconsistency Allegations

KAMPALA, Uganda: In a stunning and controversial decision that has sent shocks through Uganda’s legal and corporate communities, the High Court’s Anti-Corruption Division last week acquitted two top executives of ThreeWays Shipping Services, hence ending a decade-long fraud trial that had become a litmus test for the country’s ability to prosecute white-collar crime.

The ruling, delivered on April 30^th 2025, by Justice Lawrence Gidudu, cleared Henry Bihamaiso and Christopher Baitwa, of all charges related to a USD3.8M fraud against MTN Uganda, despite what many legal experts describe as overwhelming circumstantial and forensic evidence.

“Fraud Happened. But Not by Them,” Ruled Gidudu

The case centered on 125 fake invoices allegedly submitted to MTN Uganda between 2009 and 2012, resulting in large-scale payments to a ThreeWays-controlled bank account, the same under the exclusive authority of the two now-acquitted directors! Prosecutors argued that the fraud was orchestrated by the pair in collusion with internal accomplices at MTN.

Yet, in a judgment that has stunned the legal fraternity, Justice Gidudu ruled that while fraud was indeed committed, the prosecution failed to link the directors to the fraudulent acts. “The fact that money was deposited in an account they controlled is not, by itself, proof of intent,” the judge stated, effectively shifting the blame to lower-level employees and MTN insiders, whom he identified as the main perpetrators.

This ruling flies in the face of expectations. Bank records, internal emails, and testimony from former MTN staff painted a damning portrait of a systematic siphoning of funds. Critics say the judgment ignores not only basic financial accountability principles, but also judicial precedent.

“This Is Judicial Backflipping,” Legal Analysts Cry Foul

“This decision is judicial backflipping of the highest order,” fumed a senior legal practitioner who requested anonymity. “The judge accepted the fraud, accepted the mechanism of the theft, and accepted the evidence, but stopped short of linking the obvious dots.” Perhaps most baffling to observers is the court’s rejection of the directors’ financial control over the stolen funds as a basis for culpability.

“If this doesn’t meet the threshold for lifting the corporate veil, then what does?” asked a corporate lawyer involved in anti-fraud litigation. “This ruling effectively sends the message that top executives can escape liability so long as they don’t sign the fraudulent invoice themselves, even if they benefit from it for years.” The ruling has further reignited concerns over judicial consistency, with many drawing comparisons to the 2017 Uganda v. Jeff Lawrence Kiwanuka case, also presided over by Justice Gidudu. In that case, the judge ruled that directors could be held personally liable for fraudulent corporate transactions.

“It’s bewildering,” one court observer said. “Same judge, similar facts, completely different outcome.” Such inconsistencies have led some to question whether external pressures or clandestine influences may have shaped the verdict. The reverberations are not confined to courtrooms. Multinational corporations and financial watchdogs have reacted with alarm, warning that the ruling could cripple investor confidence in Uganda’s judiciary.

“This was a golden opportunity to demonstrate that Uganda can protect corporate entities from internal fraud,” said a regional risk analyst. “Instead, the court has effectively told foreign investors thus; ‘You’re on your own.’” With MTN Uganda losing over USD3M, incurring high legal costs, and enduring reputational damage over a 10-year court battle, corporate leaders are questioning whether legal redress in Uganda is worth the cost and or time.

Behind the Scenes: DPP’s Office Under Scrutiny

There is growing speculation over whether the Director of Public Prosecutions (DPP) will appeal the judgment. Complicating matters, the DPP’s office is now headed by a former defense counsel to some of the accused in the broader case, hence raising fears of conflict of interest.

“This case has to go on appeal, not just for MTN Uganda, but for the country’s legal integrity. Justice must not only be done. It must be seen to be done,” a retired legal brain weighed in. As the dust settles, the acquittal is being viewed not just as a legal outcome, but as a test of Uganda’s judicial backbone. Anti-corruption advocates, financial watchdogs, and multinational corporations are watching closely to see whether the system will correct what many see as a grievous miscarriage of justice.

“This isn’t just about Bihamaiso and Baitwa,” said a Kampala-based transparency lobbyist. “This is about whether Uganda is serious about fighting financial crime, or whether boardroom fraudsters can count on immunity cloaked in legal ambiguity.” For now, the two directors walk free! But the bigger question remains whether justice in Uganda is for sale, or just conveniently blind to corporate crime!