By Sadique Bamwita
KAMPALA
The Civil Division of the High Court has ordered the United Bank of Africa Limited (UBA) to pay it’s client, Michael Wilson Mazumo Shs108 million over negligence and fraudulent opening of a Bank Account.
In a judgement delivered on September 7,2026, Justice Farouq Lubega told court that his court found UBA liable for negligent and fraudulent account-opening and monitoring hence allowing an impostor to divert Mazuno’s compensation funds amounting to Shs108,230,400.
“It is hereby decreed that the defendant’s bank shall pay to the plaintiff Shs108,230,400 being the money that was lost by the plaintiff,” Justice Lubega ordered.
The legal battle originates 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 Shs108,230,400, which was meant as compensation to Mazuno as settlement of the labour claim he commenced against his former employer.
In his legal suit, Mazuno accused UBA of acting fraudulently and with gross negligence in opening the Bank Account No. 0768025176 in his name, but in favour of an impostor. In his suit he 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.
During court proceedings, Mazuno testified that on January 8, 2019, he was recruited/employed as an armed security guard with Trip Canopy Global Operations, an American private security company operating in Afghanistan.
Unfortunately during the course of his duties, 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 severe injuries suffered, he was unable to continue working normally.
Accordingly, Mazuno through his lawyers of Barnett Lerner, Kansen Frankel & Castro, lodged a legal suit against his employer of Trip Canopy Global Operations 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. Later Mazuno followed up the matter and established that UBA bank employees had on April 22, 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 10, 2023 UBA employees connived with an imposter to convert and divert the money, Shs.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.
In his wisdom, Justice Lubega told court that his court found unchallenged evidence of one of the prosecution witnesses -which showed that the Bank account was opened on April 22, 2023. And on August 8, 2023, it received money worth Shs108,230,400, which was later withdrawn in two instalments on August 10, 2023 and August 11, 2023, withdrawing Shs85 million and Shs23 million respectively.
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 bank officer 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 informed court.
Justice Lubega added, “In the circumstances, I find that the Defendant Bank cannot escape liability for the financial loss thereby occasioned to the Plaintiff”.
To add salt to an injury, Justice Lubega further ordered the bank to pay Shs20 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.
