Clearing Agents Convicted Over Fake Government Vehicle Registration

Two employees of Easthood Logistics Limited have been convicted of making a false declaration to the Uganda Revenue Authority (URA) after pleading guilty to charges involving the fraudulent registration of a motor vehicle. Jibril Jimmy Waibale, a director at Easthood Logistics Limited, and Halimah Luswata Nakafeero, a clearing agent, were convicted by the Anti-Corruption Court in Kampala on September 25, 2024.

Both Waibale, a resident of Nansana, Wakiso District, and Nakafeero, who resides in Nsimbiziiwome in Ntinda, Kampala, initially denied the charges when they appeared before the court on August 21, 2024. However, during the latest hearing, they changed their plea to guilty.

The case, presided over by Grade One Magistrate Asiimwe, saw both accused admit to making a false declaration. When asked if they had committed the offense, Waibale and Nakafeero responded with, “It is true.”

The prosecution, led by Allan Nkoyoyo, a litigation officer from URA, provided the facts of the case, which dated back to November 26, 2018. On that date, the two accused made a false declaration at the URA offices in Nakawa, Kampala. They falsely claimed that motor vehicle number UBE 939L, with chassis number WAUZZZ8P17A135668, was a government vehicle. It was subsequently registered as UG 1115B under the pretense that it belonged to the Office of the Auditor General.

Further investigation revealed that the registration was done using the Tax Identification Numbers (TINs) of both Waibale and Nakafeero. Nkoyoyo urged the court to impose a harsh sentence, emphasizing that false declarations by clearing agents were contributing to significant revenue losses for the government. He stressed the importance of sending a strong message to discourage others from engaging in similar activities.

Nkoyoyo explained that such fraudulent actions were common in the clearing and forwarding industry, leading to a loss of public revenue. He called for an end to these practices to prevent further illegal activities.

In response, the defense lawyer, Herbert Okolimong, requested a lenient sentence for his clients, noting that they had already paid UGX 7 million in taxes to the URA and had incurred financial losses throughout the legal proceedings.

After considering both the prosecution’s and defense’s arguments, Magistrate Asiimwe delivered her verdict. She acknowledged the mitigating and aggravating factors before sentencing each convict to a fine of UGX 2.5 million. In default of payment, they would serve six months in prison.