The High Court in Kampala has ordered MTN Uganda Limited to compensate its former employee, Richard Mwami, with over Shs2.3 billion after ruling that the company wrongfully caused his prosecution in a mobile money fraud case.
In a decision delivered by Acting Justice Bonny Isaac Teko, the court found that MTN played a key role in initiating criminal charges against Mwami despite earlier investigations clearing him of any involvement in the theft of about Shs16 billion from the company’s mobile money system.
The court awarded Mwami Shs1.809 billion as special damages, Shs400 million in general damages, and Shs100 million as exemplary damages, bringing the total to Shs2.309 billion.
MTN was also ordered to pay interest at 10 percent annually from the date of judgment until full payment, in addition to covering legal costs.
However, the Attorney General was removed from the case after the court ruled that the claim against the government had been filed too late under the law.
Court records show that Mwami, who worked as a senior manager in charge of MTN Village Phone and later Public Access, was the first to detect suspicious transactions on the company’s mobile money platform in December 2011.He reported the matter, prompting internal investigations.
A forensic audit conducted by Grant Thornton in January 2012 did not find him responsible for the fraud. Despite this, the court heard that MTN later relied on a statement from a suspect, Patrick Ssentongo, to link Mwami to the crime
According to evidence before Court this statement had earlier been dismissed by the Anti-Corruption Court after it was found to have been obtained unlawfully.
Justice Teko ruled that MTN officials were involved in the process through which the statement was obtained and failed to provide evidence to clear themselves of that involvement.
The judge further noted that the company lacked reasonable grounds to pursue charges against Mwami, especially after having a forensic report that had already cleared him.
The court also concluded that MTN acted with malice by using the criminal justice system for improper reasons.
Evidence presented in court showed that Mwami was arrested more than a year after investigations had ended and after other suspects had already been charged.
He was detained by the Violent Crimes Crack Unit, which typically handles serious offences, despite no clear evidence linking him to the fraud.
Mwami told court that the case severely damaged his career. He lost his job after being labeled a reputational risk by the Bank of Uganda and later spent seven days on remand in Luzira Prison. He remained on strict bail conditions for over two years while facing the charges.
He was eventually acquitted in December 2015, with the trial court stating there was no evidence against him and describing him as a victim who should have instead testified as a prosecution witness.
Although MTN Uganda denied responsibility, arguing that the case was handled independently by police and prosecutors, the High Court ruled that the company’s actions significantly contributed to the prosecution, making it liable for malicious prosecution.
Justice Teko emphasized that the award of exemplary damages was intended to discourage powerful companies from misusing the justice system against individuals.
