Court throws out Shs300m tax loss case against former URA officer

KAMPALA: The Anti-Corruption Division of the High Court has acquitted a former Uganda Revenue Authority (URA) tax officer accused of causing a Shs301 million loss to government, ruling that prosecutors failed to present sufficient evidence to warrant his defence.

Justice David Makumbi on Wednesday dismissed charges of abuse of office and causing financial loss against Mr Francis Wodero, a former URA tax officer, after finding that the prosecution had not established a prima facie case.

The ruling effectively ended a case in which the Directorate of Public Prosecutions (DPP) alleged that Wodero unlawfully adjusted Value Added Tax (VAT) assessments in favour of Service and Computer Industries (U) Ltd, resulting in a loss of Shs301.1 million in tax revenue.

Wodero was accused of uplifting VAT assessments on December 29, 2021, purportedly on the basis of credit notes issued by the company. Prosecutors argued that the adjustments lacked legal justification and amounted to an abuse of his office.

However, Justice Makumbi found significant weaknesses in the prosecution’s case, including defects in the manner the charges were framed.

The judge said the indictment lacked clarity and failed to adequately explain the specific conduct that constituted the alleged abuse of office.

“The prosecution witnesses are meant to testify to prove the indictment against the accused person and not to clarify the indictment,” Justice Makumbi ruled.

According to the court, the charge sheet was so unclear that it required witness testimony to explain the allegations, a situation the judge said undermined the accused’s constitutional right to a fair trial.

The prosecution had called five witnesses, including URA officials, a digital forensic expert, a representative of the beneficiary company and a police officer attached to URA’s Staff Compliance Department.

The State also relied on tax assessment records and investigation reports to support its case.

Despite this evidence, the court found that prosecutors failed to identify the specific arbitrary act allegedly committed by Wodero or demonstrate how his actions were prejudicial to the interests of URA.

Justice Makumbi further held that there was no evidence showing that Wodero knew, or had reason to believe, that his actions would result in financial loss to government.

The court noted that the disputed credit notes had been acknowledged by Service and Computer Industries as genuine documents and that investigators failed to establish any conspiracy between the company and the former tax officer.

The judge also rejected claims that Wodero had violated internal procedures, saying the prosecution had not provided sufficient evidence to support those allegations.

Wodero’s defence team had argued that the tax adjustments were made within the law and were intended to account for valid credit notes issued by the taxpayer.

They maintained that he acted within the authority granted to him as a URA officer and used official systems and procedures available at the time.

While the court acknowledged that the VAT assessments had the potential to occasion a loss of Shs301.1 million, Justice Makumbi said prosecutors failed to prove the critical elements required to sustain the charges.

“The evidence as it stands against the accused is not sufficient to safely convict the accused were he not to be put to his defence,” he ruled.

Consequently, the court acquitted Wodero on both counts under Section 74(1) of the Trial on Indictments Act and ordered his immediate release unless he is being held on other lawful charges.

The judge also informed both the prosecution and the defence of their right to appeal the decision.

The ruling is a setback for prosecutors in one of the anti-corruption cases arising from investigations into tax assessment adjustments at URA, and underscores the importance of properly framing charges and presenting sufficient evidence before court.