In a ruling that has sent shockwaves through Uganda’s business and legal communities, Justice Lawrence Gidudu on April 30, 2025, acquitted Oscar B. Baitwa and Geofrey Bihamaiso, shareholders and directors of Three Ways Shipping Services Ltd, in a high-profile fraud case involving MTN Uganda.
The two had been charged in Criminal Session Case No. 1 of 2019 with theft, conspiracy to defraud, and obtaining money by false pretenses.
MTN had alleged that over a period of three years, the company was defrauded of USD 3.8 million through the submission of false invoices supported by forged air waybills and delivery notes.
The prosecution’s case was built on the premise that the accused, as the only signatories to the company’s bank accounts, must have been the ultimate beneficiaries of the stolen funds.
It was further alleged that the funds were deposited into their company’s accounts by MTN employees who colluded with insiders from Three Ways Shipping.
However, Justice Gidudu held that mere signatory authority over an account where stolen funds were deposited does not make one a thief, particularly in the absence of direct evidence linking the accused to the fraudulent scheme. This argument confirms that indeed the stolen funds were hidden in Threeways account.
The judge reasoned that the theft was complete the moment money left MTN’s account fraudulently and that the persons responsible for causing the money to move—MTN employees—were the actual thieves. He criticized the prosecution’s failure to call key witnesses, particularly the employees of Three Ways Shipping whose charges had been withdrawn.
Their testimony, he noted, could have provided the crucial link connecting the accused to the alleged fraud.
Justice Gidudu’s judgment, however, has been criticized by legal observers who argue that the circumstantial evidence was overwhelming.
They point to the fact that the accused paid USD 300,000 to MTN after the fraud was uncovered as an admission of involvement rather than an act of good faith. Critics further argue that the accused, as company directors, had a duty to detect and prevent financial irregularities, especially one that allegedly lasted for three years.
By failing to hold the accused accountable, some believe the court has effectively endorsed the idea that company directors can hide behind their employees’ actions to avoid liability, setting a troubling precedent for corporate accountability in Uganda.
