Landmark Ruling: Threeways Shipping Directors Acquitted in 13-Year MTN Fraud Case

The two founding Directors of Regional logistics company Threeways Shipping Services(Group) Ltd secured a landmark ruling against telecom service provider MTN in a criminal case that has dragged on for 13 years. 

The case stems from previous allegations that the two Directors- Oscar Baitwa and Geoffrey Baitwa had participated in defrauding MTN. 

Justice Lawrence Gidudu of the Anti-Corruption Court provided the ruling with key summaries, saying: “The court finds that while a theft of funds from MTN Uganda did indeed occur, there is insufficient evidence to prove beyond reasonable doubt that the accused persons (Oscar Baitwa and Geoffrey Bihama) were responsible for or complicit in this theft.”

The judge said that the prosecution failed to provide compelling evidence that would establish a conspiracy between the two accused brothers and directors of Threeways Shipping Services (G) Ltd to defraud MTN Uganda.

Justice Gidudu indicated that the mere fact that the accused were signatories to the accounts into which the stolen funds were deposited does not, in itself, constitute proof of their participation in-or knowledge of the fraudulent activities.

Delivering the verdict, Justice Gidudu said that on all counts of conspiracy to steal, fraud, and theft, the accused Oscar Baitwa and Geoffrey Bihamaiso were thus acquitted, noting that both MTN Uganda and Threeways Shipping appear to have been victims of fraudulent activities perpetrated by their own employees.

He recommended appropriate internal investigations be conducted by both organizations.

Hannington Karuhanga, the Board Chair of Bro Group, to which Threeways is a subsidiary, welcomed the court ruling stating that “while the case itself did not concern the Bro Group or its subsidiaries directly, we are glad that our founding Directors can now finally put this case behind them.”

“As a group, we are fully committed to strong corporate governance, and we will now accelerate our regional growth strategy on the back of our oil and gas and cementitious logistics footprint.”