A judge in the criminal division of the High Court of Uganda has declared criminal summons, alleging tax evasion against the senior management and board of directors of MTN Uganda, null and void.
Last month, MTN Uganda lodged a formal complaint with the Judicial Service Commission in Uganda against the chief magistrate of the Buganda Road Magistrates Court, Sylvia Nabagala.
MTN Uganda expressed "grave concern" about the magistrate's professional misconduct, which it says was "evident in her contradictory rulings and disregard of due process". Launched in 1994, MTN has operations in 21 countries in Africa, Asia and the Middle East, with a total of 182.7 million subscribers.
Yesterday, MTN said judge Lameck Mukasa set aside all orders previously issued by Nabagala, dated 10 October, 6 November and 19 November. This follows MTN's approach to the High Court to review Nabagala's decision to issue summons against its directors and executives to plea on tax evasion charges.
MTN says the court had no record of formal charges or proceedings. The cellular operator had argued that the summons, issued on 6 November, were issued a day after Nabagala had transferred the case to the Director of Public Prosecutions (DPP) to investigate the allegations, yet the DPP had not applied for any criminal summons.
Criminal suit
MTN Uganda CEO, Mazen Mrou'e, welcomed the judgment, saying the private prosecution. initiated by former MTN employee Naphtali Were, had no merit.
Were is facing charges of defrauding MTN Uganda of $5 million, as well as attempted fraud of UShs600 million from MTN Uganda, says MTN. In the process of searching his home, the police found stolen MTN property: 11 solar power inverters, with an estimated value of UShs140 million, the company says in a statement.
Mrou'e said MTN was going ahead with its criminal prosecution and civil claim against Were and directors of Threeways for their active involvement in allegedly defrauding MTN Uganda.
"We took the magistrate's ruling for review by the High Court because we view any allegations of unethical conduct against MTN in a very serious light. MTN has zero tolerance for fraud. For this reason, we will prosecute those who defraud MTN and propagate false information to the detriment of MTN Uganda and the MTN group to the fullest extent of the law," said Mrou'e.
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