MTN Uganda Appeals Shs 2.3 Billion Malicious Prosecution Award to Former Employee

MTN Uganda has officially initiated an appeal against a High Court ruling that granted its former employee, Richard Mwami, a substantial Shs 2.3 billion in damages. The award stems from a malicious prosecution lawsuit filed by Mwami.

The company, through its lawyers Kampala Associated Advocates, lodged a Notice of Appeal just six days after High Court Acting Justice Isaac Bonny Teko delivered the judgment on June 26. The award included Shs 1.809 billion in special damages, Shs 400 million in general damages, and Shs 100 million in exemplary damages, plus interest and costs.

Justice Teko had ruled that MTN was the primary instigator of the criminal proceedings against Mwami concerning a 2012 mobile money fraud case, despite MTN’s own audit not implicating him. MTN, however, contests this, asserting that it fulfilled its legal duty by reporting suspected fraud to the Uganda Police Force.

The core of MTN’s appeal is expected to challenge the High Court’s finding of legal responsibility for Mwami’s prosecution. The company contends that the subsequent investigation, evidence evaluation, and prosecutorial decisions are constitutionally the responsibility of the State, specifically the Director of Public Prosecutions (DPP), who operates independently.

Legal experts suggest this case could set a significant precedent regarding the liabilities of entities that report potential criminal conduct to authorities. If the High Court’s decision stands, it could have broad implications, potentially exposing companies and individuals to civil liability even after state-led investigations and decisions to prosecute.

The Court of Appeal will now consider the extent to which private complainants can be held accountable for prosecutions ultimately carried out by the state, aiming to clarify the legal boundaries in such cases. This case is anticipated to be a landmark decision in Ugandan corporate litigation.

Source: Nile Post