By Immaculate Wanyenze
In 2014, Uganda Revenue Authority terminated two of its staff Mugerwa Dominic and Muhwezi Abias formerly of Domestic Taxes, Jinja office. These between the months of January 2014 and September 2014 approved VAT refund payments of UGX 6.5 Billion to Rising Star Commodities Ltd. The said company had purportedly exported brown sugar it bought from Kakira Sugar Works Ltd to a Kenyan Company- Gemini Traders Ltd.
The accused were charged at the Anti-Corruption Court Division of the High Court with offences of; Abuse of Office, Causing Financial Loss, and False Claims contrary to the provisions of the Anti-Corruption Act, 2009.
They both pleaded not guilty where upon the Prosecution presented 18 witnesses, whilst the accused gave sworn evidence and called no witnesses in their defense.
The trial Court presided over by Hon. Justice Paul K. Mugamba, convicted the accused of all counts and sentenced each to 5 years’ imprisonment for abuse of office, 10 years’ imprisonment for causing financial loss and 2 years’ imprisonment for false claims. These sentences were to run concurrently.
In addition, the accused were disqualified from holding a public office for a period of 10 years. Court also declined to make an order for compensation of the amounts lost.
Not satisfied with the High Court decision, the accused lodged an appeal in the Court of Appeal challenging the conviction and sentence. They also filed an application to adduce further evidence to show that Shah Jagdish, MD Rising Star Commodities had entered a Memorandum of Understanding (MOU) to pay the amounts fraudulently refunded to them; which application Court granted.
The Court of Appeal presided over by Hon. Justice Geoffrey Kiryabwire, Hon. Lady Justice Catherine Bamugemereire and Hon. Justice Remmy Kasule dismissed the appeal and confirmed the conviction and sentence of the High Court.
The Court also noted that URA having entered into an MOU with Shah Jagdish for refund of the amounts fraudulently paid to Rising Star Commodities does not in any way arbitrate the case against them. The accused were sent back to serve the custodial sentence.
Mugerwa and Muhwezi filed an application in the Supreme Court seeking for release on bail pending the hearing and determination of their appeal to the Supreme Court.
The Court on 27th January 2022 presided over by Hon. Justice Prof. Lillian Tibatemwa-Ekirikubinza, JSC dismissed the application noting that the principles which apply to applications for bail pending appeal are different and more stringent than those applicable to applications for bail pending trial.
The applicants had not proved existence of unusual and exceptional circumstances to warrant their release. They were taken back into custody to serve the sentence as confirmed by the Court of Appeal.
Mugerwa and Muhwezi were represented by Mr. Bakole Simon while the URA was represented by Bakanansa Hilda Walaga of the Legal Service and Board Affairs Department.
URA has zero tolerance policy to corruption, with a steadfast pledge to serving with the highest levels of Patriotism, Integrity and Professionalism. We are committed to mobilizing revenue for national development in an efficient and transparent manner.
