Business 30 June 2026 Daily Monitor (Uganda)
MTN Uganda ordered to pay Shs2.3 billion for malicious prosecution of ex-manager
The High Court in Uganda has ordered telecommunications giant MTN Uganda to pay over Shs2.3 billion in damages to a former senior manager, Richard Mwami, for malicious prosecution. The court found that MTN instigated criminal proceedings against Mwami despite their own investigations clearing him of a multi-billion shilling fraud case. Source: https://www.monitor.co.ug/uganda/news/national/mtn-ordered-to-pay-shs2-3b-over-malicious-prosecution-of-ex-manager-5514486
MTN Uganda has been directed by the High Court to compensate former senior manager Richard Mwami with approximately Shs2.3 billion. This ruling stems from a finding that the telecom company maliciously initiated criminal proceedings against Mwami in connection with a significant mobile money fraud case.
Justice Isaac Bonny Teko determined that MTN was the primary driver behind the prosecution. The court was convinced that the company relied on a confession that was obtained unlawfully to implicate Mwami, even though internal forensic investigations had previously exonerated him.
The awarded damages include Shs1.81 billion for special damages, Shs400 million for general damages, and Shs100 million for exemplary damages. These amounts do not include accruing interest or legal costs.
Mwami, who formerly held positions such as Senior Manager for MTN Village Phone and Senior Manager Public Access, was instrumental in identifying suspicious activities on MTN’s mobile money platform in late 2011. His report led to investigations into a suspected Shs16 billion fraud.
Despite a forensic audit by Grant Thornton that identified other individuals involved in the fraud but did not implicate Mwami, he was later arrested. His prosecution followed a statement allegedly obtained from a suspect named Patrick Ssentongo. However, this statement was later declared inadmissible by the Anti-Corruption Court, which ruled it had been acquired involuntarily and illegally.
Justice Teko stated that MTN employees were directly involved in procuring the statement and failed to provide evidence to the contrary. The court concluded that MTN acted with an improper motive and not in good faith, especially since Mwami was the whistleblower who initially uncovered the fraud. The judgment highlighted that no reasonable person, armed with an exculpatory report, would have believed Mwami was guilty.
The prosecution had severe repercussions for Mwami, including job termination from Mobile Money Africa Limited after the Bank of Uganda classified him as a reputational risk. He reportedly suffered public humiliation, loss of liberty, and lasting damage to his career. The court noted that his only “transgression” was discovering and reporting the fraud that the company later used as a basis to ruin him.
The Attorney General was also a defendant in the suit but was dismissed as the claim against the government was filed beyond the statutory limitation period.