Cooperatives’ compensation: Advocate Matovu arraigned on charges of theft and conspiracy to defraud govt
Matovu, who had been entrusted as one of the legal representatives for Busoga Growers Cooperative Union to pursue war loss compensation claims from the government, is accused of conspiring with others to misappropriate the funds.
KAMPALA, August 14, 2024 – John Matovu, an advocate with Matovu & Matovu Advocates, has been arraigned before the Anti-Corruption Court on charges of theft by an agent and conspiracy to defraud the government of billions of shillings.
The proceedings were initiated by the State House Anti-Corruption Unit, in collaboration with the Criminal Investigations Directorate [CID] and the Office of the Director of Public Prosecutions [ODPP].
Matovu, who had been entrusted as one of the legal representatives for Busoga Growers Cooperative Union to pursue war loss compensation claims from the government, is accused of conspiring with others to misappropriate the funds.
The accusations include charges of theft and conspiracy, suggesting that the advocate exploited his position to embezzle the compensation meant for the cooperative union.
The case against Matovu comes as part of a broader investigation into the misuse of funds allocated to Busoga Growers Cooperative Union. He now joins Charles Basoga, the Chairperson of the Union, and several others who are already on trial for their alleged involvement in the same fraudulent activities.
Following his court appearance, Matovu was remanded to custody until August 16, 2024, as investigations continue. The authorities have reaffirmed their commitment to exposing and prosecuting those involved in corruption, emphasising that no one is above the law.
According to a parliamentary report, Busoga Growers Cooperative Cooperative Union was paid 13.070 billion through Matovu & Matovu Advocates, although the Union had earlier received Shs 2bln through Makada & Partner Advocates who deducted the agreed 10 percent professional fee.
The report says the Union however only received Shs 6.020bln on its bank account, leaving 9.050bln unaccounted for as it did not reflect on the cooperative’s bank account.
According to the Union’s Treasurer, Haruna Ntuyo, Matovu & Matovu Advocates failed to honour the MoU signed with the Union, which stipulated that the law firm would get 40 percent of the collected funds. Ntuyo, in the parliamentary report published in October 2023, says the law firm retained most of the money, only releasing some as and when they would wish.
It is alleged that the Registrar of Cooperatives referred the Union leaders to the above law firms.
Regulation 8 [1] of the Advocates [Professional] Conduct Regulations provides that “an advocate shall not use money held on behalf of a client either for the benefit of himself or herself or any other person” and further under Regulation 29, an advocate is implored to account promptly and correctly for all monies held in respect of the client. “A lawyer who does not remit clients’ funds commits an offence and the client is at liberty to proceed against such lawyer as per the law.
The story, first reported via the State House Anti-Corruption Unit’s X [formerly twitter], highlights the ongoing battle against corruption within Uganda, a key priority for the government as it seeks to safeguard public funds and promote transparency.
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