Home Business Legal Battle: MTN Uganda Loses Bid to Halt Shs2.8 Billion Lawsuit

Legal Battle: MTN Uganda Loses Bid to Halt Shs2.8 Billion Lawsuit


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  1. Former MTN Uganda Employee’s Lawsuit Progresses Despite Telecom Giant’s Attempt to Halt

MTN Uganda, a telecommunications company, has faced a setback in its ongoing legal dispute with former employee Richard Mwami. In the latest development, Judge Esta Nambayo of the Civil Division of the High Court has rejected MTN Uganda’s application to halt the lawsuit and ordered the company to cover the costs of the proceedings.

The legal battle initiated in 2018 by Mr. Mwami centers on his claims of wrongful dismissal and malicious prosecution. He is seeking special damages amounting to Shs2.8 billion, along with general and exemplary damages. Additionally, he requested an interest rate of 25 percent per annum on all claims from the date of judgment until full payment, as well as the costs associated with the lawsuit.

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In the lawsuit filed on October 31, 2018, Mr. Mwami accused MTN Uganda and the Attorney General of engaging in “unlawful and malicious prosecution.” In response, MTN Uganda argued that the court had already addressed Mr. Mwami’s case and requested the court to dismiss his case due to a failure to “disclose a cause of action” against them. The telecom company also sought compensation for the costs if their application was successful.

Representing MTN Uganda in the legal proceedings was Ms. Barbara Musimenta, while Mr. Mwami was represented by Ms. Mercy Odu from AF Mpanga Advocates.

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MTN Uganda attempted to use a previous court decision from 2012, where Judge Yasin Nyanzi ruled in favor of Mr. Mwami, to demonstrate that the issues between Mr. Mwami and the company had been resolved by the court. However, Judge Nambayo pointed out that the 2012 case only involved MTN Uganda as a defendant, with the Attorney General not being a party to that lawsuit. Furthermore, she noted that the cause of action in the 2018 case, based on unlawful and malicious prosecution, differed substantially from the cause of action in the 2012 case, which was centered on wrongful dismissal.

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The legal dispute stems from Mr. Mwami’s dismissal from his position at MTN Uganda in April 2012. Despite this, he secured employment with Mobile Money Africa Ltd in the same month. In 2013, Mr. Mwami faced arrest and charges in the Anti-Corruption Court, including embezzlement, corruption by neglect of duty, and conspiracy to defraud MTN Uganda. During his trial, a letter from the executive director – supervision at the Bank of Uganda prompted Mobile Money Africa Ltd to terminate his employment, further complicating the legal battle.