Two Ugandan law firms have been exposed for their involvement in an elaborate scam that resulted in a staggering loss of Shs 1.2 billion for the Qatar-based Ascend Group.
The law firms played a crucial role in orchestrating the fraudulent scheme, including fabricating a non-existent $120 million procurement contract for technical schools for the NRM government and manipulating Ascend Group into remitting substantial funds.
The intricate deception began with false representations by individuals like Mike Mutebi and Alex Ampurira, who claimed to be associated with NRM committees.
The fabricated chairman, David Mugabe, and a self-styled communications director guided Ascend Group through the fraudulent process, emphasizing the need for local registration in Uganda as a prerequisite for the non-existent contract.
Today, we unmask the lawyers and law firms at the center of this fraud: Kato Absolom of KAAB Advocates and Arthur Mwebesa of Mwebesa and Company Advocates, both based in Kampala.
The two legal practitioners played pivotal roles in the elaborate scheme, leading to their subsequent arrests on different intervals.
Counsel Kato spent a week in custody, while Arthur Mwebesa endured 4 days at Jinja Road Police Station before they were granted bail pending investigations.
Counsel Mwebesa, an experienced lawyer, when contacted to explain his involvement in the scam, immediately denied receiving Shs 1.2 billion in his bank account, even though this website had not mentioned the money.
BACKGROUND
In a fraudulent scheme involving two law firms, Parliament employees, a former high-ranking official, and security agents, the proprietors of a Qatar-based firm, Ascend Group, found themselves in distress after losing $306,950 to Ugandan fraudsters.
The scammers posed as procurement officers from the ruling National Resistance Movement (NRM) and convinced Ascend Group to remit funds as a precondition for a non-existent $120 million contract for constructing technical schools in various locations.
Meetings between the fraudsters and investors, including the signing of a fake contract agreement, took place within the precincts of Parliament.
State House’s Anti-Corruption team is investigating the matter, following instructions from the President’s Principal Private Secretary.
The CEO of Ascend Group, Souhel Imtiaz Khan, filed a police statement revealing the elaborate scam.
It started with an email from a supposed sourcing company manager, Mike Mutebi, and escalated through introductions of fake NRM officials, a fabricated presidential directive, and a sham contract proposal submitted by Ascend Group.
A fake NRM Procurement and Disposal Unit chairman, David Mugabe, and Mutebi coerced Ascend Group into registering a local company in Uganda.
They recommended the two law firms for the registration process, which involved remitting funds.
After the registration of Sohail Construction Limited, Khan visited Uganda for meetings with government officials, including a former cabinet minister, to discuss the project and sign contract documents.
Ascend Group remitted $287,000 as cash performance security deposits to a lawyer’s bank account in six different tranches.
The fraudsters continued demanding more money for certificates of good conduct and anti-money laundering processes.
When Ascend Group stopped sending additional funds, communication from the fake NRM officials ceased.
Efforts to reach the fraudsters were unsuccessful, prompting Ascend Group to contact Uganda’s mission in Qatar and subsequently the Office of the President. State House’s Anti-Corruption Unit confirmed an ongoing investigation into the matter.
The background story was partly reported by Daily Monitor on February 17.