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City lawyer charged over Sh1b Tropical Bank fraud
Musa Lukungu in the dock at the ant-corruption court in Kampala. Photo | Benson Tumusiime
What you need to know:
- Musa Lukungu, 40, was produced in court on Monday by police detectives attached to the State House Anti-Corruption Unit (SH-ACU) to answer charges of fraud.
A city lawyer, accused of conspiring with Tropical Bank staff to defraud the financial institution of Sh1b has been charged before the Anti-Corruption Court in Kampala.
Musa Lukungu, 40, was produced in court by police detectives attached to the State House Anti-Corruption Unit (SH-ACU) to answer charges of fraud.
The accused was arrested last week hours after City Hall Court granted him bail in a case where he is accused of fraudulently selling the client’s land at Sh150m.
The city lawyer appeared before Chief Magistrate Joan Aciro at the anti-corruption court and pleaded not guilty to the charge of conspiracy to defraud.
The prosecution alleges that the lawyer and seven Tropical Bank officials in November 2021, at Tropical Bank Limited, in Kampala, conspired to defraud the financial institution Sh1b, which was irregularly paid to Margaret Nabona as an administrator of the estate of Elmrabet Abdurezzagh.
The officials are accused of causing financial loss to the bank by irregularly processing Sh1b payment to Nabona without following the proper bank procedures and payment process.
The lead prosecutor David Mugamba, informed the court that investigations are still ongoing.
Lukungu was released on a cash bail of Shs6m while each of his sureties were bonded at Shs30m, not cash.
Under Section 390 of the Penal Code Act, the offence attracts a maximum sentence of seven-year imprisonment on conviction.
