Court

Two remanded over Shs1bn fraud in fake military deal

The duo allegedly convinced the investors that they could secure a lucrative government contract to supply military items such as uniforms, boots, sleeping bags, and mosquito nets.

Two suspects have remanded over USD 257,000 military supply scam as anti-graft agencies crack down on fraud in Kampala. (Photo/Handout)

Kampala, Uganda: The Anti corruption court in Kampala has remanded to prison two suspects charges with an alleged fraud and money laundering scheme involving more than USD 257,000 (about UGX 1 billion) in a fake military supply contract.

The accused, Ssekidde Godfrey Lubowa and Ibona Joseph, were arraigned before the court on Monday following a joint operation by the State House Anti-Corruption Unit, Criminal Investigations Directorate, and the Office of the Director of Public Prosecutions.

They face multiple charges, including money laundering, obtaining money by false pretence, forgery, uttering false documents, personation, and conspiracy to defraud.

Prosecution alleges that between September 2022 and May 2023, the suspects—together with others still at large—defrauded Namibian-based investors, including Etosha Defensive Systems Pty Ltd and Penda Enterprises CC.

The duo allegedly convinced the investors that they could secure a lucrative government contract to supply military items such as uniforms, boots, sleeping bags, and mosquito nets.
Investigators say the suspects claimed the funds were required for registration fees, disbursements, and bid security to facilitate the award of the contract through the Office of the President.

Authorities further revealed that the money was channelled through a law firm’s bank account under false pretences, raising suspicion of a coordinated scheme designed to legitimise the transactions.

The total amount allegedly obtained stands at USD 257,896.5.

The suspects were remanded to prison until May 19, 2026, as investigations continue and authorities pursue additional suspects linked to the scheme.

The case highlights ongoing efforts by anti-graft agencies to clamp down on high-level fraud and restore confidence among international investors.

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