UGANDA: OFFICE BREAK-IN LINKED TO SUCCESSFUL GLOBAL FUND

UNCLAS SECTION 01 OF 02 KAMPALA 000846

DEPARTMENT PASS TO MCC (CHAKA)
DOJ FOR OPDAT (ALEXANDRE, SILVERMAN, EHRENSTAMM AND LAHAIE)

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PHUM EAID KCOR UG
SUBJECT: UGANDA: OFFICE BREAK-IN LINKED TO SUCCESSFUL GLOBAL FUND
PROSECUTIONS

REF: A. Kampala 523, B. Kampala 444


1. (SBU) Summary: Two more Ugandans were sentenced to five years
imprisonment and ordered to pay 30 million Ugandan shillings
($14,000) in restitution in the latest Global Fund conviction. As
news of the conviction spread, several suspects rushed to repay
stolen funds in hopes of negotiating immunity. Others, in hopes of
stalling further prosecutions, broke into the office of the
Directorate of Public Prosecutions (DPP) and stole computers, hard
drives, and other material related to the Global Fund embezzlement
investigation. DDP officials quietly suspect Uganda Police Force
involvement in the break-in, but details surrounding the incident
remain unclear. Regardless, DPP Global Fund prosecutions are
expected to continue. End Summary.

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Two More Convicted in Global Fund Theft Case
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2. (U) Elizabeth Ngororano and Annaliza Mondon were found guilty on
July 14 of embezzlement and 21 counts of uttering false documents in
the latest prosecution for thefts from the Global Fund for HIV/AIDS,
Tuberculosis and Malaria (Global Fund - see reftels for background).
They were sentenced to five years for embezzlement and received
concurrent two-year sentences for uttering false documents. Both
were ordered to pay restitution of 30 million shillings ($14,000)
and were remanded into custody immediately. In announcing his
decision, Judge Katutsi of the High Court's newly created
Anti-corruption Division (ACD) commented that "this is yet another
case where greed has taken an upper hand in administering of public
funds." Judge Katutsi rejected the defense's argument that it was a
mistake as "nonsense," dismissing it with "the utmost contempt it
deserves."

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Convictions Send Clear Message, Though Reactions Differ
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3. (U) As news of the latest convictions spread, several suspects
rushed to repay stolen Global Funds in hopes of gaining immunity
from prosecution. Since the July 14 conviction of Ngororano and
Mondon, DPP officials reported that there had been more than seven
instances where suspects repaid funds ranging from 20 million to 65
million Ugandan shillings. However, the DPP has made no agreements
to drop its investigations or prosecutions against any of the Global
Fund targets, even if restitution is paid.


4. (SBU) As DDP officials celebrated another successful conviction
and what many hoped would be perceived as a tough message on
corruption, at least one well-connected mystery suspect was resolute
that justice would not take its course. On July 8, several
individuals broke into DPP offices to steal Global Fund
investigative materials. Using five different keys that were only
provided to staff, the burglars entered the unmarked Global Fund
investigation room, removed computer hard drives, and took CPU chips
that contained scanned copies documentary evidence. A laptop from
the DPP Director's office and his secretary's hard drive were also
taken. However, they failed to steal the server which backed-up all
the files, the physical DPP files, and the prosecution memos
outlining the charges, case theories, and analysis of possible
defenses.

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Some in DPP Quietly Suspect Police Involvement
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5. (SBU) While the details surrounding the DPP office break-in
remain unclear, DPP officials quietly suspect Uganda Police Force
(UPF) involvement. Several months ago, high-ranking police
officials asked the DPP to return some of the Global Fund files to
the UPF. Shortly after the DPP refused to release the files, a
major reorganization of the UPF's Criminal Investigation Division
(CID) resulted in the transfer and reassignment of the commanders
and many personnel of the Anti-Corruption Units. The investigators
assigned to the joint CID/DPP Global Fund investigative teams were
also transferred with the replacements having no familiarity with
the Global Fund cases. When the police restructuring did not stall
the DPP investigations, some allege, 960 million Ugandan shillings
allocated to the DPP to carryout the Global Fund investigation
vanished from its bank account. The money was traced to the
Ministry of Internal Affairs, which is responsible for the UPF.
From there, the money seems to have disappeared. An investigation
has been initiated, but the money has yet to be returned to the
DPP's account.

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KAMPALA 00000846 002 OF 002


Comment
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6. (SBU) The latest convictions might be changing the way
corruption cases are handled in Uganda. Quick trials, findings of
guilt, lengthy prison sentences, and orders for full restitution
were unheard of before the creation of the ACD. Since its
inception, and with substantial support from the USG under the
Millennium Challenge Account Threshold Program, the ACD has
concluded three separate trials and found all four persons guilty,
sentenced each to imprisonment from five to ten years, and ordered
repayment of all stolen funds. This has clearly shaken-up a few
well-connected individuals who fear that they could be next. The
DPP will have to institute stronger security measures to safeguard
the remaining materials, but is expected to move forward with more
prosecutions.

HOOVER