By Our Reporter
Kampala, Uganda – The State House Anti-Corruption Unit (SHACU) has intensified its crackdown on a high-profile fraud syndicate, leading to the arraignment of two more suspects in a case involving the defrauding of UGX 2.2 billion from an American company.
Kasenge Martin, also known as Tumusiime Denis, a businessman, and Kaweesa Ronald, a painter, were presented before the Buganda Road Chief Magistrates Court on charges of electronic fraud, obtaining money by false pretenses, and conspiracy to commit a felony.
The duo joins a growing list of accused individuals, including David Balondemu, the Chairman of the Kampala District Land Board, along with Mkwe Eric and Ibona Joseph, who were previously charged in connection to the same fraudulent scheme.
The UGX 2.2 Billion Scam
Investigations revealed that between November 2022 and April 2023, the accused individuals allegedly deceived investors from KG Unlimited LLC, an American company, by falsely promising to secure them a contract for procuring and supplying a water plant under Uganda’s Ministry of Agriculture, Animal Industry, and Fisheries.
The money was reportedly funnelled through M/s Bloom Advocates, a law firm linked to the fraudsters, with Kaweesa Ronald receiving the funds on their behalf.
All suspects have been remanded until February 26, 2025.
The latest arrests add to the deepening legal troubles of David Balondemu, a prominent lawyer and the head of the Kampala District Land Board.
Balondemu, who had previously secured bail, was re-arrested at Entebbe International Airport upon his return from Dubai, where he had allegedly been hiding to evade justice. His re-arrest marked the continuation of multiple investigations into financial crimes involving billions of shillings.
According to sources within SHACU, Balondemu is set to face eight new charges related to fraud, money laundering, and forgery.
A History Of High-Profile Scams
According to State House Unit, Balondemu and his law firm, M/s Balon Advocates and Bloom Advocates, are at the center of a web of financial fraud, with allegations of defrauding six international companies of over UGX 41 billion.
Major Cases Linked To Balondemu:
- Defrauding a Turkish company, Guner Kuzu Construction Limited, of UGX 14 billion – The firm was tricked into believing they had secured a procurement deal for constructing hospitals in Uganda.
- Scamming a Korean investor in a fraudulent gold transaction – This case first exposed his alleged criminal activities in October 2023.
- Defrauding KG Unlimited LLC (USA) of UGX 2.2 billion – Linked to the water plant procurement scam.
- Swindling UGX 6.3 billion from Air Options Pty Ltd (South Africa) – This was under the pretense of securing a contract for supplying air conditioners for the Ministry of Local Government.
- Defrauding Tecmo Automation Pty Ltd (South Africa) of UGX 1.5 billion – A fraudulent procurement for fuel and lubricants supply at the Ministry of Energy and Mineral Development.
- Scamming Marce Firefighting Technology Pty (South Africa) of UGX 225 million – Another fictitious procurement scheme.
- Fraudulent land transactions – Balondemu allegedly used forged documents to allocate prime land in Kampala, including:
- Plot 20, Prince Charles Drive – Illegally converted using forged land board minutes.
- Plot 1-5, Kyambogo Link – Allocated to a Kenyan company, Babubhai Construction Limited, through a fraudulent invoice of UGX 450 million.
Balondemu’s Defense
Despite mounting allegations, Balondemu maintains that he never personally received the funds in question and insists that the prosecution has failed to present direct evidence against him.
Now, the arrests of Kasenge and Kaweesa indicate that SHACU is expanding its probe into what appears to be a well-organized financial crime syndicate.
As the February 26 court date approaches, all eyes will be on the unfolding legal battle, which could expose further details about Uganda’s deep-seated corruption networks.
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