The High Court has awarded more than Shs 2.3 billion to former telecom executive Richard Mwami after finding that he was maliciously prosecuted in a case that the court described as deeply unjust and improperly motivated.
In a judgment delivered by Ag. Justice Bonny Isaac Teko ruled that MTN Uganda Limited unlawfully instigated criminal proceedings against Mwami despite clear evidence that he was not involved in the fraud he had, in fact, helped expose.
Mwami, a senior corporate professional, had been instrumental in uncovering a major fraud within the company. A forensic audit conducted by Grant Thornton identified the individuals responsible but Mwami’s name did not appear among those implicated.Instead, he was treated as a suspect.
The court heard that criminal charges against Mwami were largely based on a statement obtained from another suspect under questionable circumstances. That statement was later ruled inadmissible by Justice Lawrence Gidudu, who found it had been extracted through coercion and did not meet legal standards.
Despite this, Mwami was arrested more than a year after investigations had concluded, prosecuted, and subjected to a lengthy trial before eventually being acquitted of all charges in December 2015.
Justice Teko found that MTN Uganda was the “moving force” behind the prosecution and acted without reasonable and probable cause, relying on evidence it either knew or ought to have known was unreliable.
The court further ruled that the company acted with malice, using the criminal justice system for purposes other than its intended function.
“The Mwami was a sacrificial lamb,” the judgment noted, echoing earlier findings by Justice Gidudu.
Mwami’s arrest involved the Violent Crimes Crack Unit, a move the court described as disproportionate given the nature of the allegations.
The court heard that Mwami’s life and career were severely affected. He spent seven days in Luzira Prison, endured restrictive bail conditions for over two years, and lost his job after being classified a reputational risk by the Bank of Uganda.
His professional reputation was damaged by widespread media coverage that portrayed him as a fraud suspect before any court determination.
The claim against the Attorney General was dismissed as time-barred, but judgment was entered against MTN Uganda, which was also ordered to pay the costs of the suit.
The court awarded Mwami Shs 2,309,750,000 including Special damages: Shs 1,809,750,000, General damages: Shs 400,000,000 and Exemplary damages: Shs 100,000,000
Additionally, the court ordered that the amount will attract 10% annual interest from the date of judgment until full payment is made.
