The Anti-Corruption Court has convicted a sitting Member of Parliament and three others in connection with a fraud scheme that caused significant financial loss to Namisindwa District Local Government.
The Office of the Director of Public Prosecutions (ODPP) confirmed that Hon. Otukol Samuel, a Member of Parliament and director in Samix Uganda Ltd and Zedkol Financial Services, was found guilty alongside Odap Francis, the former Chief Administrative Officer of Namisindwa District, Wamburu Willy, the Acting Chief Financial Officer, and Osire Ezekiel, a director of Zedkol Financial Services.
Court heard that between June and November 2019, Odap and Wamburu irregularly processed payments under the guise of staff loan deductions to companies that had not provided any services to the district.
The payments included UGX 82.5 million to United for Development SACCO, UGX 202.4 million to Samix Uganda Ltd, and UGX 210.4 million to Zedkol Financial Services.
The prosecution argued that the transactions violated Ministry of Public Service guidelines, which require all staff loan deductions to be remitted through a centralized code managed by the Uganda Consumer Lenders Association (UCLA).
Further investigations revealed that both Samix Uganda Ltd and Zedkol Financial Services were not licensed by the Uganda Microfinance Regulatory Authority (UMRA), were not members of UCLA, and had not extended any loans to district staff.
The court also established that upon receipt of the funds, Hon. Otukol and Osire withdrew and utilized the money.
In its ruling, the court convicted Odap and Wamburu on three counts of causing financial loss and two counts of conspiracy to defraud. Hon. Otukol was convicted on two counts of theft and two counts of conspiracy to defraud, while Osire was found guilty on one count of theft and one count of conspiracy to defraud.
The case was prosecuted by Senior State Attorney Emily Mutuzo Sendaula before Her Worship Asiimwe Ester.
Sentencing of the four convicts has been scheduled for April 1, 2026.
