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Kampala businessman faces 2 year Jail for Withdrawing Shs 848million deposited into his ABSA bank account by mistake

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kakooza Peter

Jan 21, 2025

Nakasero businessman Ronald Ajuk sentenced to 2 years for withdrawing $219,931 mistakenly deposited by Absa Bank.
Samuel Kiyaga, Head of Alternate Channels AbsaUganda photo credit: twitter

In a significant ruling at the Anti-Corruption Court in Nakasero, businessman Ronald Jimmy Ajuk, the owner of Smart Parking Technology, has been sentenced to two years in prison. Justice Lawrence Gidudu found him guilty of unlawfully taking $219,931 (about sh848 million) that had been mistakenly deposited into his account by Absa Bank.


How the Case Began

The issue started with a small loan transaction. Ajuk borrowed sh6 million from Anne Kamwine, who transferred the amount to his bank account via mobile banking. However, due to a serious mistake by Absa Bank, his account was incorrectly credited with $6 million (around sh22 billion).


Realizing the unexpected deposit, Ajuk quickly withdrew sh848 million before the bank could correct the error. Although the bank later managed to recover most of the funds, the amount he took remained unaccounted for. This led to a lengthy legal battle.


Court’s Decision and Ruling

Justice Gidudu emphasized the seriousness of Ajuk’s actions, stating that such misconduct could damage the trust in financial institutions. The judge noted that unauthorized withdrawals on this scale could lead to major consequences, including a loss of confidence in banks.


The court pointed out that Ajuk had shown no effort to return the money since June 2022. The judge stated, “The convict has not demonstrated any willingness to refund the money he was not entitled to spend. It is unclear how he expects this matter to remain unresolved while he enjoys his freedom.”


As a result, the judge decided on a two-year prison sentence, believing it was necessary both as punishment and to ensure Ajuk repays the bank after serving his term.


Legal Consequences and Lessons

Ajuk was convicted under the Anti-Corruption Act for causing financial loss. This crime carries a maximum penalty of 14 years in prison, a fine of sh6.7 million, or both. The court, considering all factors, opted for a two-year sentence and ordered Ajuk to refund the full amount to the bank.


Banking System Concerns

The case has raised serious concerns about banking security and human errors in financial transactions. For Absa Bank, the incident not only resulted in financial loss but also affected its reputation and customer trust.


Justice Gidudu stressed that the ruling was not just about punishing Ajuk but also about discouraging similar incidents in the future. “Financial institutions are the backbone of the economy, and their integrity must be protected at all costs,” he said.


A Lesson for Everyone

This case serves as a warning about the consequences of unethical behavior. Ajuk may have seen the accidental deposit as an opportunity, but his decision led to legal trouble, financial obligations, and reputational damage.


The ruling reinforces the idea that people cannot take advantage of banking mistakes for personal gain without facing consequences. It also highlights the need for banks to improve their systems to prevent such costly errors.


As Ajuk serves his prison sentence, the focus now shifts to whether he will be able to refund the remaining funds and what lessons both individuals and financial institutions can learn from this case.


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