More than 10 lawyers from various law firms are set to appear before the Criminal Investigations Directorate (CID) of the police to record statements regarding the alleged mismanagement of funds intended for war loss compensation.
This development follows an October 2023 report from the Tourism, Trade, and Industry Committee of Parliament, which implicated them in the mismanagement of compensation funds meant for cooperatives across the country.
The committee, chaired by Mwine Mpaka, discovered that most payments for war loss compensation were not made directly to the beneficiary cooperatives but were instead funnelled through law firms. Many of these firms retained significant portions of the funds.
Consequently, the Parliamentary Committee recommended that the CID, Inspector General of Government (IGG), and Director of Public Prosecutions (DPP) exercise their powers to conduct further investigations into the personal involvement and professional misconduct of the lawyers about the war loss compensation to cooperatives.
Among the lawyers cited are Ezra Kabali, who traded as Probata Advocates, and Masereje & Co. Advocates. They were implicated in massive fraud involving Buyaka Growers Cooperative Society, Uganda Cooperative Transport Union Limited, East Mengo Growers Cooperative Union Limited, and West Acholi Cooperative Limited.
Nandaah Wamukoota of Nandaah Wamukoota & Co. Advocates was cited for professional misconduct related to Uganda Cooperative Transport Union Limited and Bugisu Cooperative Society. Other law firms cited included Madira and Company Advocates, which was mentioned in connection with the accountability of funds meant for Okoro Coffee Growers Cooperative Union.
The committee noted that while Madira and Company Advocates requested Shs 871 million, they received Shs 940 million, thus rendering the entire document submitted to the committee suspect of fraud.
“The Committee has reason to believe that the Union concocted these figures to make accountability for the monies they paid to Madira & Co. Advocates,” the report indicated.
Also summoned for questioning is Justin Mungoma of M/S Mungoma & Co. Advocates, over his role in West Mengo Growers Cooperative Union. The law firm was imposed on the union by Michael Mawanda Maranga, a member of parliament representing Igara East. Initially, the cooperative used the services of M/S J.M Musisi Advocates before Mawanda convinced them to use Mungoma, suggesting that they would only be paid if they did so.
When Mungoma Justin & Co. Advocates received Shs 2 billion in payments from the ministry of Trade, Industry and Cooperatives, they reportedly only released Shs 50 million to the intended recipients and retained the remainder, which was later shared, including with MP Mawanda. The committee recommended that Mungoma Justin & Co. Advocates be referred to the Uganda Law Council for professional misconduct.
OTHER LAW FIRMS ON THE SPOT
Kirya and Company Advocates. The law firm Kirya and Company Advocates was cited for submitting fictitious accountabilities for the Bumwambu Growers Cooperative Society under the leadership of MP Wamakuyu Mudiimi.
The parliamentary committee reviewed expenditure instructions issued by Bumwambu Cooperative Union to Kirya & Co. Advocates and found that the cooperative’s expenditure amounted to Shs 13.7 billion, which was significantly higher than the Shs 11.2 billion received from the Ministry of Trade, Industry and Cooperatives (MTIC). This left an unexplained excess of Shs 2.5 billion, making the explanation tendered unbelievable and the accountability doubtful.
“This would imply that accountability was fictitious since the cooperative couldn’t have spent more than funds received from MTIC,” the committee noted.
Kirya and Company Advocates were also cited in the case of Buyaka Growers Cooperative Union, linked to Mudimi, and could not account for Shs 3.8 billion received from MTIC.
The committee recommended that Julius Kirya of M/S Kirya & Co. Advocates, and Ezra Kabali of Masereje & Co. Advocates be referred to the Uganda Law Council for appropriate action due to their professional misconduct and non-remittance of some funds to Buyaka Growers Cooperative Society Limited. The report also noted that the CID should investigate Ezra Kabali for holding out as a lawyer from Probata Advocates.
Odonga Otto
Odonga Otto, acting through his law firm M/S Odonga Otto and Co. Advocates, was recommended by officials from the Ministry of Trade, Industry and Cooperatives (MTIC) to the East Acholi Cooperative Union Ltd for handling their war loss compensation claims.
The chairperson of the Union, Allen Aceng, informed the parliamentary committee that she had objected to this recommendation, but the law firm instituted a suit against the union for non-compliance.
As a result, the union was compelled to sign a consent agreement with the law firm, stipulating that the firm would retain 30% of the compensation paid by the government. Following the execution of this consent judgment with M/S Odonga Otto and Co. Advocates, wherein the law firm was to receive 30% of the compensation, the union was paid Shs 1 billion.
On November 13, 2020, the secretary manager of the union, the accountant, and the cashier—who were the official signatories of the union—authorized the bank to deduct Shs 300 million from their account to pay Odonga Otto’s firm.
The committee questioned the minister of state in charge of cooperatives, Frederick Ngobi Gume, to substantiate the union’s allegations that he had conditioned them to use M/S Odonga Otto & Co. Advocates as their representatives for war loss compensation.
Gume told the committee, “Otto came to me and said, I come from this place, I have a law firm, why don’t you allow me to get a job. They could easily have refused. I did not force them but Otto was a Member of Parliament, he is a colleague… like you if you come, if you want to be assisted. You are an MP, I will treat you differently and then I gave them an option, well, this is a Member of Parliament, you use him. I did it… that one I cannot deny but they had an option to refuse.” Gume is quoted in the report as telling the MPs.
John Matovu of Matovu and Matovu Advocates
The law firm Matovu and Matovu Advocates was contracted to pursue the war claims of Jinja Multi-Purpose Cooperative Society at a professional fee of 40% of the compensation claim. However, when the government paid Shs 6.8 billion to the law firm, only Shs 1.030 billion was received by the cooperative society, and the remainder of the money could not be accounted for.
John Matovu is also cited in the compensation case of Busoga Growers Cooperative Union Limited. The law firm, along with Makada & Partners, received Shs 15.070 billion for the cooperative compensation. Of this amount, Shs 2 billion was received by Makada & Partners, with Shs 200 million taken as legal fees, and the rest by Matovu & Co. Advocates after its contract had been terminated.
Despite Makada charging only 10% of the compensation money, the cooperative chose to hire Matovu & Co. Advocates, who were charging a 40% fee.
Ilukor Advocates and Solicitors
Ilukor Advocates and Solicitors were cited in connection with the Teso Cooperative Union. The committee established that on June 22, 2017, the union engaged the services of M/S Ilukor Advocates & Solicitors under a contract and retainership agreement for a period of three years.
The union was supposed to pay a retainer fee of Shs 134 million per year and the law firm was entitled to 35% of the government compensation for war claims upon payment. The committee noted, “This was irregular for a law firm to get that huge amount at the expense of the beneficiaries and it kills the intention of the entire scheme of the war losses compensations to cooperatives.”
Isodo and Co. Advocates
Isodo & Co. Advocates were appointed on August 30, 2019, as lawyers to represent Teso Cooperative Union on a retainer basis. Isodo took the union and its leadership to court, seeking an order to be appointed as the official lawyers representing the union.
“The intended purpose of the lawsuit was to compel them to sign a resolution reinstating him as the Teso Cooperative Union lawyer, among others, in charge of receiving war loss compensation money on their behalf. This action of taking the union to court amounts to touting, which is not acceptable in the legal practice profession contrary to Section 75 of the Advocates Act, Cap 267,” the report noted.
The committee further observed that upon receiving the cooperative’s money, Isodo paid himself up to Shs 240 million, disguised as payment for arrears for informal instructions executed by the law firm on behalf of the union for the period between 2015 and 2018.
“The committee is aware that the said monies were paid by the Union even when there was no formal agreement between the parties and no resolution to that effect. The Committee notes that this was an irregular payment because instructions of such nature from the Union should have been initiated by the Board of Management formally,” the report concluded.
Isaac Kato from Kasimbazi and Co. Advocates
The report noted that an unauthorized legal firm, Kasimbazi and Co. Advocates, represented by a purported lawyer named Isaac Kato, was paid Shs 15 million for unspecified legal services. The claim voucher lacked documentation for these services, and even the general manager could not justify what Kato Isaac did for them.
Bailey Ociba of M/S Bailey & Company Advocates
Bailey Ociba received Shs 5.44 billion from the ministry of Trade, Industry and Cooperatives (MTIC) for compensation to Wamala Growers Cooperative Union Limited. However, according to bank statements, the union received only Shs 629 million.
The report recommended that the Inspector General of Government (IGG) and Director of Public Prosecutions (DPP) investigate and prosecute all individuals, including lawyer Bailey Ociba, who illegally received funds meant for Wamala Cooperative.
Other law firms cited for misconduct and fraudulent acquisitions of money meant for war compensation to cooperatives include Nassuna & Co. Advocates, M/S Ekirapa & Co. Advocates, M/S Century Advocates, Tropical Law Advocates, M/S Ampurire Associated Advocates, M/S Kabega, Bogezi & Bukenya Advocates, and M/S Sozi & Partners Advocates.
