The Civil Division of the High Court in Mbale has ordered the United Bank of Africa Limited (UBA) to pay it’s client Mazuno Michael Wilson, UGX 108 million over negligence and fraudulent opening of a Bank Account.
In a judgement dated 07/09/26, Justice Lubega Farouq ordered UBA to pay Mazuno the money after the bank was found liable for negligent and fraudulent account-opening and monitoring, allowing an impostor to divert Mazuno’s compensation funds amounting to UGX 108,230,400.
“It is hereby decreed that the defendant’s bank shall pay to the plaintiff Ugx 108,230,400/= being the money that was lost by the plaintiff” he said.
The case stems from a 2024 suit, in which Mazuno sued UBA for breach of duty of care, fraud, and negligence in opening Bank Account No. 0768025176 in the name of Mazuno.
A conversion of UGX 108,230,400/=, which was meant as compensation to Mazuno as settlement of the labour claim he commenced against his former employer.
Mazuno claimed that UBA acted fraudulently and with gross negligence in opening the Bank
Account No. 0768025176 in his name, but in favour of an impostor, and in the suit sought the Bank to declare that it acted fraudulently and with gross negligence in opening the Bank Account No.
0768025176 in his name, but in favour of an impostor.
Background
During hearing, Mazuno revealed that on the 8th day of January, 2019, he was recruited/employed as an armed security guard with Trip Canopy Global Operations Inc., an American private security company operating in Afghanistan.
During the course of his employment, sometime in 2020, he fell from the guard tower and sustained multiple injuries, including damage to the spine, which resulted in hearing impairment and psychological trauma.
Due to the injuries suffered, he was unable to continue working normally.
Accordingly, Mazuno, through his lawyers, Barnett Lerner, Kansen Frankel & Castro, proceeded against his employer, Trip Canopy Global Operations Inc., for compensation before the U.S Department of Labour Office of Workers’ Compensation Programs.
He waited for communication from his lawyers regarding the claim, but it did not come forth, prompting him to write to them to inquire about the progress of the claim.
However his lawyers informed him that the claim had been settled, and an award of USD 30.000 was approved and remitted to UBA. Mazuno followed up on the matter and established that the
UBA bank employees had, on 22/4/2023, fraudulently connived with an impostor and opened a bank Account in his name, using his National Identity Card number (NIN), but the same bearing a photo of a different person rather than his.
On August 10th, 2023 UBA employees connived with an imposter to convert and divert money, Ugx: 108,230,400/= which was meant for Mazuno’s compensation, and they subsequently withdrew it fraudulently from Bank Account No. 0768025176 in two instalments on 10th and 11th of
August, 2023.
While delivering his ruling, Justice Lubega noted that the court found unchallenged evidence of prosecution witness 2, which showed that the Bank account was opened on the 22nd day of April, 2023. On 10/8/2023, it received money worth Ugx: 108,230,400, which was later withdrawn in two instalments on 10/8/2023 and 11/8/2023, withdrawing Ugx: 85 million and UGX 23 million.
The witness, who was UBA’s branch manager, then testified that the two bank officials who acted negligently in opening the impugned bank account were dismissed from work.
The evidence on record shows that UBA dismissed Job Ariebi, an officer who was involved in the process of opening the impugned bank account. Another officer, DW1, who was similarly involved in the account-opening process, testified that he resigned from the Bank upon securing another employment opportunity.
Although Defence Witness 2 and Defence Witness 3 testified that Job Ariebi was dismissed for a different reason, namely, receiving money from a client within the Bank’s premises, the circumstances surrounding his dismissal remain a matter that cannot be lightly disregarded.
“In light of the foregoing, and having considered the totality of the evidence on record, I find that the Defendant Bank did not act with the requisite degree of care and good faith in opening the impugned bank account and in permitting the substantial sum of money deposited therein to be withdrawn shortly thereafter” Justice Lubega said.
Justice Lubega added, “In the circumstances, I find that the Defendant Bank cannot escape liability for the financial loss thereby occasioned to the Plaintiff”.
Justice Lubega further ordered the bank to pay UGX 20 million in general damages to Mazuno and costs of the suit.
He further ordered an interest of 8 percent on both fines from the date of judgment until full recovery of the money.
