(Kampala) – Farouk Nsubuga, the owner of NFK Investment Ltd, has been charged with tax evasion in connection to a fraudulent tax scheme involving UGX 319 million. The charges were presented at the Anti-Corruption Court in Nakasero, where the case is being heard by acting chief magistrate Albert Asiimwe.
Nsubuga is facing the charges alongside three Uganda Revenue Authority (URA) employees: John Mawerere, a resident of Katabi in Entebbe Municipality; Godfrey Omony, who lives in Kyebando, Kawempe Division; and Marvin Kayima, from Banda in Wakiso District. Additionally, several other individuals are accused of being involved in the fraud, including Joshua Rubagasira Asiimwe, the manager of Toll-Free Spectrum; Ignatius Kabuye, a driver at Emmy Trinity Investment Ltd; and clearing agent Mohammed Kaye, among others.
During the court session on November 11, 2024, Nsubuga was granted bail after presenting two substantial sureties. Magistrate Asiimwe set the cash bail at UGX 6 million and required the sureties to execute a non-cash bond of UGX 20 million each. Another accused person, identified as Sunday Kidega, was not present in court due to illness. Kidega’s lawyer, Rebecca Najjemba, requested a postponement, which the court granted, setting a new appearance date for December 4, 2024. Magistrate Asiimwe emphasized that Kidega must respect the court’s orders and appear as required, as all other co-accused had attended and been charged.
Hilda Atusimiire, the Acting Supervisor of Customs and Non-Tax Revenue Prosecution, informed the court that investigations into the matter are ongoing and requested more time for police inquiries to be completed.
Case Details
Information
Defendant
Farouk Nsubuga, Proprietor of NFK Investment Ltd
Co-accused
John Mawerere, Godfrey Omony, Marvin Kayima, others
Court
Anti-Corruption Court, Nakasero
Charges
Tax evasion, falsification of tax payments
Bail
UGX 6 million cash bail, UGX 20 million non-cash bond
Next Hearing
December 4, 2024
The prosecution claims that, on August 6, 2024, Mawerere, Omony, and Kayima, along with others still at large, manipulated the URA’s computerized system. They are accused of altering the payment status for goods cleared using the Tax Identification Number (TIN) 1041669773, registered under Exoon Mobil, to falsely show that UGX 125 million in taxes had been paid.
The accused are also accused of using the TIN 1027802835, registered under Shifik Wamala, to falsely show that taxes totaling UGX 24.1 million were paid to clear goods associated with a motor vehicle (UBR 998H), when no payment had actually been made.
In another instance, on August 2, 2024, Kaye is accused of evading UGX 95 million in tax payments using TINs for El Syed and Kafunjo Logistics Ltd, claiming to have paid taxes for clearing used clothes, which was untrue. Furthermore, Mawerere, Omony, and Kayima allegedly manipulated URA systems on August 5, 2024, to falsely show payment of UGX 14.9 million for the clearance of a Hino truck using TIN 1001053566, registered under Abdallah Oyee.
Another count involves the accused tampering with the payment status for Gala Logistics and Forwarders (TIN 1018894331), falsely claiming the payment of UGX 13.3 million in taxes. All the accused, including Kabuye, are currently out on bail.
The court will reconvene in December, and the investigation into the fraudulent activities is expected to continue.
