The Commercial court has dismissed a suit filed by Entebbe mayor Fabrice Brad Rwalinda against Stanbic Bank Uganda over a disputed deposit of $73,262.50 (about Shs 273 million) linked to the M23 rebel group in the Democratic Republic of the Congo (DRC).
In a judgment delivered electronically on Monday, justice Stephen Mubiru ruled that Rwalinda could not sustain his claim against the bank, citing the illegality surrounding the transaction.
Court records show that Rwalinda operated a dollar account at Stanbic Bank’s Bugolobi Village Mall branch. On August 10, 2017, M/s Green Global Corporation transferred $422,957.50 to his account, followed by an additional $73,262.50 on August 11, 2017.
The bank later reversed the smaller deposit and returned it to the sender. Rwalinda sued the bank, arguing that the reversal was done without his consent and amounted to a breach of their banking contract.
He sought recovery of the funds, interest, general damages and legal costs. However, Stanbic, through M/s Kyagaba & Otatiina Advocates (Dentons Advocates), maintained that the transactions were unusual and suspicious.
The bank reported the matter to the Financial Intelligence Authority (FIA) after Rwalinda reportedly failed to provide documentation explaining the source and purpose of the funds.
The bank also stated that Green Global Corporation requested the reversal after discovering that the funds were part of an alleged investment scam. In his ruling, Justice Mubiru examined provisions of the Anti-Money Laundering Act and the legal doctrine of wilful blindness, which treats individuals who deliberately ignore the source of funds as having knowledge of their criminal origin.
The court found that Rwalinda gave inconsistent explanations regarding the source of the funds, including claims related to gold, oil, transport and construction. It further noted that the money was linked to the M23 rebel group in eastern DRC, which has been sanctioned by the United Nations over human rights abuses and destabilising state authority.
The bank statement shows that what the plaintiff claimed to be money belonging to M/s Green Global Corporation, he largely spent it on meeting personal needs and the needs of his own children, as proceeds of crime.
In his statement to the police during the ensuing police investigations, the Rwalinda admitted having been involved in dealings involving gold mining and the M23 rebels in the Democratic Republic of Congo. The Rwalinda admitted having served as an intermediary between an unlicensed gold dealer and the M23 rebels in relation to a transaction for the purchase of gold as the purchaser’s agent.
Justice Mubiru held that Rwalinda failed to take reasonable steps to verify the source of the funds and that the circumstances pointed to strong indicators of a criminal origin.
Although the specific underlying offence was not established, the handling of the funds suggested unlawful conduct. The judge also observed that while Stanbic breached the banking contract by reversing the funds without a court order, the contract itself was unenforceable because it was tainted by illegality.
He cited the legal principle ex turpi causa non oritur actio – meaning no legal action can arise from a dishonourable cause.
The court concluded that Rwalinda’s conduct amounted to money laundering, as he knowingly handled funds likely derived from criminal activity without verifying their source. The case was consequently dismissed, with Rwalinda ordered to pay costs to Stanbic Bank.
In other words, what a MAYOR!
The fact Mayor, Rwalinda is a self-confessed M23 Rebel collaborator, he must as well be a mafia and/or bloody MERCHANT OF DEATH (arms dealer).