Pension scam: Fate of frozen accounts set for March 7

 

  

Traders in downtown conduct their businesses. Without commercial laws, Uganda’s economic growth will keep lagging behind. FILE PHOTO. 

 

By ANTHONY WESAKA

Posted  Wednesday, February 20  2013 at  02:00

Kampala

The Anti-Corruption Court yesterday set March 7 to determine the fate of several frozen bank accounts belonging to two of the pension scam suspects. The date was set by Justice Paul Mugamba after hearing arguments both in support and against the lifting of the orders.

On November 8 last year, the Director of Public Prosecutions (DPP) successfully secured a court order from Nabweru Magistrates Court, freezing the bank accounts of Mr Christopher Obey, the principal accountant in the Public Service ministry, and that of Mr David Oloka, the senior accounts assistant, in the same ministry.

The Nabweru court ordered the freezing of their personal and company bank accounts, restricting transfer of movable and immovable properties and managing their companies.

DPP’s argument
The DPP had successfully argued that there was a need to freeze the accounts and restrict the movement and management of assets belonging to Mr Obey and Oloka, claiming the properties were acquired through stolen money since the matter is still under investigations. He argued that the suspects, along with others in the ministry, are still being investigated for fraudulently acquiring Shs200 billion from government and could dispose the fraudulently acquired properties if the orders were reversed.

But when the matter came up for hearing yesterday, Mr Brain Othieno, one of the defense lawyers, asked court to order for the unfreezing of the bank accounts on grounds that the orders issued by the Nabweru court were illegally secured. He argued that the orders were issued without any formal application being heard and that their clients were also not heard before ordering for the blocking of their accounts.

Another defence lawyer Nathan Osinde, argued that the illegal actions of the state to block their client’s company accounts, has greatly had a toll on their businesses as they are on the verge of collapsing.

The state represented by Ms Barbra Kawuma, asked court to maintain the earlier court orders of Nabweru by freezing their bank accounts until such a time when they are through with their investigations.

awesaka@ug.nationmedia.com