MTN HIT WITH SHS2.3BN COURT AWARD: High Court rules telecom giant maliciously instigated prosecution of former senior manager Richard Mwami

The High Court has delivered a landmark judgment against MTN Uganda, ordering the country’s largest telecommunications company to pay more than UGX 2.3 billion to its former senior executive, Richard Mwami, after finding that the company maliciously instigated his prosecution in the infamous UGX 16 billion mobile money fraud case.

In a ruling that is likely to shape corporate accountability in Uganda, Justice Isaac Bonny Teko concluded that Mwami—far from being a fraud suspect—was in fact the whistleblower who first uncovered and reported the suspicious transactions. Yet, despite internal investigations clearing him of wrongdoing, he was later arrested, prosecuted and subjected to years of criminal proceedings before eventually being acquitted.

The judgment paints a troubling picture of how a senior employee who exposed suspected fraud ended up facing criminal charges while those responsible for investigating the fraud possessed evidence that exonerated him.

COURT AWARDS OVER SHS2.3 BILLION

Delivering judgment on June 26, 2026, at the High Court Civil Division in Kampala, Justice Teko awarded Mwami UGX 2,309,750,000 in damages.

The award comprises UGX 1,809,750,000 in special damages for financial losses, UGX 400 million in general damages for the harm caused to his reputation, liberty and career, and UGX 100 million in exemplary damages intended to punish and deter similar conduct.

The court further ordered that the entire amount shall attract interest at 10 percent per annum from the date of judgment until full payment, with MTN also required to meet the legal costs of the suit.Mwami was represented by AF Mpanga Advocates, while MTN Uganda was represented by Kampala Associated Advocates. The Attorney General was represented by the Attorney General’s Chambers.

THE WHISTLEBLOWER WHO BECAME THE ACCUSED

The dispute traces its origins to December 2011 when Mwami, then serving as Senior Manager Public Access at MTN Uganda, examined transactions on the company’s Fundamo mobile money platform.During the review, he discovered unusual and suspicious transactions involving approximately UGX 16 billion.

Instead of concealing the irregularities, Mwami reported his findings to senior MTN officials, including Themba Khumalo and Anthony Katamba.The matter was subsequently reported to police, prompting MTN to commission an independent forensic audit by Grant Thornton.

That forensic report, dated January 12, 2012, became one of the central pieces of evidence in the civil proceedings.According to the High Court, the report did not implicate Mwami in the alleged fraud.

Despite those findings, the company later supported criminal proceedings that saw Mwami arrested and prosecuted.

A CASE BUILT ON A DISCREDITED STATEMENT

Justice Teko observed that the only evidence eventually used to implicate Mwami was a charge-and-caution statement made by Patrick Ssentongo in February 2013.However, that statement had already been rejected in earlier criminal proceedings by Justice Lawrence Gidudu, who ruled that it had been obtained involuntarily and illegally.

The High Court noted that the original investigations—including both the police inquiry and the Grant Thornton forensic audit—had not identified Mwami as a suspect.Instead, criminal proceedings had already commenced against other individuals before Mwami was unexpectedly added to the case more than a year later.

The judge found that the man who had first reported the suspicious transactions had ultimately become the accused despite there being no credible evidence linking him to the alleged theft.

MTN WAS THE ‘MOVING FORCE’

A central question before the court was whether MTN could be held liable when the criminal prosecution had technically been conducted by the Police and the Office of the Director of Public Prosecutions.MTN argued that it neither prosecuted Mwami nor controlled the criminal process. Justice Teko rejected that defence.

He held that liability for malicious prosecution is not limited to the institution formally conducting the prosecution.Rather, the court must determine who was the real force behind the criminal proceedings.

After reviewing the evidence, the judge concluded that MTN Uganda was the “moving force” behind Mwami’s prosecution.The court attached particular significance to evidence showing that MTN employees were present during the recording of Patrick Ssentongo’s controversial statement.

Justice Teko observed that the company failed to call those employees to explain their role or rebut allegations concerning the manner in which the statement had been procured.The judge further noted that MTN’s own witness failed to provide a satisfactory explanation regarding how the statement had been obtained.

FORENSIC REPORT CLEARED MWAMI

One of the most damaging findings against MTN was that the company already possessed evidence clearing Mwami before criminal proceedings were initiated.

Justice Teko observed that the Grant Thornton forensic investigation identified individuals directly connected to the fraud but did not implicate Mwami in any way.The court also recalled earlier observations by Justice Lawrence Gidudu, who had described Mwami as a “sacrificial lamb” and suggested that he should have been a prosecution witness rather than an accused person.

Taken together, the judge concluded that MTN knowingly disregarded exculpatory evidence while facilitating criminal proceedings against its former employee.

NO REASONABLE CAUSE, COURT FINDS

The High Court further ruled that MTN lacked reasonable and probable cause to support Mwami’s prosecution.Justice Teko stated that no prudent person in possession of a forensic report clearing an individual—and aware of the questionable circumstances surrounding the only incriminating statement—could honestly believe that the person was guilty.

The judge found that Mwami’s role throughout had been consistent with that of a whistleblower rather than a participant in the fraud. The court therefore concluded that the criminal case had no proper evidential foundation.

IMPROPER MOTIVE BEHIND THE PROSECUTION

Beyond the absence of evidence, the court also found that MTN acted with malice.

Justice Teko explained that malice in law extends beyond personal hatred and includes using criminal proceedings for purposes other than the proper administration of justice. Several factors persuaded the court that the prosecution had been driven by an improper motive. Mwami was arrested more than a year after investigations had effectively concluded.

The arrest was carried out by the Violent Crimes Crack Unit. At the time, Mwami had also become associated with EzeeMoney, an entity involved in civil litigation against MTN over alleged anti-competitive business practices.

The timing and surrounding circumstances, the court held, strongly suggested that the criminal process had been employed for collateral purposes unrelated to justice.

ATTORNEY GENERAL REMOVED FROM THE CASE

Although Mwami also sued the Attorney General, the court struck out the claim against government on procedural grounds.

Justice Teko ruled that actions in tort against the government must be filed within two years under the Civil Procedure and Limitation (Miscellaneous Provisions) Act.

Since Mwami was acquitted on December 10, 2015, the limitation period expired in December 2017. His civil suit against the Attorney General was filed in October 2018, making it out of time.However, the claim against MTN remained valid because private companies are subject to the ordinary six-year limitation period under the Limitation Act.

CAREER DESTROYED BY CRIMINAL CHARGES

In assessing damages, the court found that Mwami suffered devastating professional, financial and personal consequences.He lost substantial income after his employment ended, with the court accepting claims for lost salary, housing allowance and medical benefits.

The court also heard that Mwami spent seven days on remand at Luzira Prison, remained on restrictive bail conditions for more than two years, faced travel limitations and endured widespread public humiliation as a result of the highly publicised criminal proceedings.

Justice Teko further noted that the Bank of Uganda classified him as a reputational risk, effectively destroying his prospects of continuing a career in the financial sector.Although the court rejected claims relating to the value of a company vehicle, performance bonuses and legal fees due to insufficient proof, it concluded that the remaining evidence overwhelmingly justified substantial compensation.

A LANDMARK DECISION

The ruling represents one of Uganda’s most significant judgments on malicious prosecution involving a corporate entity.It underscores that private companies cannot escape liability merely because criminal proceedings are formally conducted by state prosecutors where evidence shows that they instigated or engineered those proceedings.

For Richard Mwami, the judgment marks the end of a legal battle that began after he reported suspicious transactions within MTN’s mobile money system.The High Court ultimately found that the employee who first exposed the alleged fraud was transformed into its principal suspect despite evidence pointing to his innocence.

With MTN now ordered to pay more than UGX 2.3 billion, together with interest and legal costs, the decision stands as a significant affirmation that the criminal justice system should not be used as a tool against whistleblowers or for collateral corporate purposes.

Author Profile

Stephen Kasozi Muwambi: Mr. Stephen Kasozi Muwambi is a seasoned crime investigative writer, majoring in judicial-based stories. His two decades’ experience as a senior investigative journalist has made him one of the best to reckon on in Uganda. He can also be reached via [email protected]