In 2012, MTN filed a complaint of theft, embezzlement, and causing financial loss against some of its staff at the Directorate of Criminal Investigations and Intelligence. Photo / File
On September 10, 2012, MTN filed a complaint of theft, embezzlement, and causing financial loss against some of its staff at the Directorate of Criminal Investigations and Intelligence.
A case file was subsequently opened, but also included investigations on possible collusion and fraud in which Threeways Shipping Services was accused of defrauding MTN of about $3.827m (Shs13.98b).
Almost a month later, or more, on August 30, 2012, the director of public prosecution applied to the Anti-Corruption Division of the High Court for an order to freeze the accounts of Threeways to allow criminal investigations into the matter.
The order kicked off a 13-year court battle that will go down as one of the most dramatic cases in Uganda’s corporate history.
With MTN applying pressure on Threeways and other suspected accomplices, the two parties entered into an understanding, in which they, through a memorandum of understanding, among others, indicated that they were desirous of seeking an amicable and confidential resolution to protect their respective legal and business interests.
However, the memorandum of understanding would later become a subject of dispute, in which Threeways claimed it was under pressure to enter into the understanding, which made it illegal.
The case would go into one counterclaim after another and had, over the years, become a serious risk material to MTN.
In fact, in its prospectus issued in 2021 to support its initial public offering, MTN indicated that the company was involved in two significant litigations, including against Threeways, which presented material risks to prospective investors.
In details published then, MTN noted that the dispute against Threeways – the former telecom’s logistics, clearing and forwarding services handler- had two components, of which, one in the Court of Appeal contested the decision of the High Court (Commercial Division) to dismiss a suit against Threeways to recover $3.827m that had been paid to the logistics firm using fictitious invoices, while the other in the Commercial Division of the High Court sought action against a quasi-contract, where money had been paid and received by Threeways.
Thus, the Shs13.98b case – no matter which direction it would take – was always going to be a pain point and has had many twists and turns that many Ugandans must at some point have lost track of what was going on.
In various documents filed before courts, MTN contended that Threeways and its directors colluded with some of its employees to submit at least 125 fictitious invoices, the subject of which resulted in substantial loss of money.
The whole case in itself had different ingredients, which apart from MTN’s need to recover money that it claimed had been paid fraudulently, had criminal intent that was pursued by the State through the Director of Public Prosecutions.
The dispute had through various main, miscellaneous, and counter applications, been argued variously.
The issue of criminal intent
And the element of criminality was pursued with a case filed against six individuals who had been accused of criminal intent before the Anti-Corruption Division of the High Court.
The case, which has been in court since 2013 but with various amendments, had six suspects from Threeways and former staff of MTN, but over time, some suspects had been struck off the file due to plea bargains and death, leaving only two Threeway directors for trial.
In the case, whose trial started last year, Geoffrey Bihamaiso and Oscar Baitwa, both Threeways directors, had been accused of participating in defrauding MTN, theft, and conspiracy to defraud following the submission of 125 fake invoices and forged airway bills between 2009 and 2012.
Prosecutors had argued that the fraudulent invoices had formed the basis of fraudulent payments made by MTN to the Threeways accounts, which were controlled exclusively by Bihamaiso and Baitwa.
However, in an April 30, 2025, ruling by Justice Lawrence Gidudu, the Anti-Corruption Division of the High Court acquitted the two directors for lack of evidence that directly linked them to the fraud.
In his ruling, Justice Gidudu indicated that court had not been provided with evidence to prove Bihamaiso and Baitwa’s criminal intent or direct participation in the scheme.
Court, however, acknowledged that fraud had indeed occurred, but Justice Gidudu noted that the fraud had been planned and executed by MTN insiders and low-level employees of Threeways, and not the two directors as had been alleged.
“The fact that money was deposited in an account they controlled is not, by itself, proof of intent,” he ruled.
However, in what could be a new twist, the Director of Public Prosecutions has indicated that the State would appeal against the acquittal of Bihamaiso and Baitwa, which would present an interesting extension of a case that has been in court for now 13 years.
The May 5 notice of appeal, perhaps, finds comfort in the recommendation of the trial judge, in which he recommended that appropriate internal investigations should be conducted by both MTN and Threeways.
The trial
During trial, prosecution had argued and presented evidence that over three years, MTN had been defrauded not only through fake invoices, but forged airway bills, the proceeds of which had been deposited into Threeways accounts that were solely controlled by Bihamaiso and Baitwa.
This, prosecution argued, connected the two to the fraud, or they were aware of the scheme.
However, in his ruling, Justice Gidudu dismissed the claim, noting that there was absence of testimonies from key witnesses to support the claims.
He further suggested that rogue elements in MTN could have acted alone or connived with lower Threeways carder employees to orchestrate the fraud without informing the directors.
Thus, it is this that the Director of Public Prosecution will, perhaps, be seeking to overturn on the premise that enough evidence has been presented to prove the criminal intent of Bihamaiso and Baitwa.
