news 16 March 2026 The Observer (Uganda)
Entebbe Mayor Rwalinda Loses Shs 273m Lawsuit Against Stanbic Bank Over M23-Linked Funds
The Commercial Court dismissed Entebbe Mayor Fabrice Brad Rwalinda's lawsuit against Stanbic Bank Uganda regarding a reversed $73,262.50 deposit equivalent to Shs 273 million, tied to the M23 rebels in DRC. Justice Stephen Mubiru ruled the transaction illegal, citing money laundering concerns and Rwalinda's failure to verify the funds' suspicious origins. Source: https://observer.ug/news/m23-rebels-entebbe-mayor-rulinda-loses-shs-273m-case-against-stanbic-bank
Entebbe Mayor Fabrice Brad Rwalinda has lost his court battle against Stanbic Bank Uganda over a disputed deposit of $73,262.50, roughly Shs 273 million, connected to the M23 rebel group in eastern Democratic Republic of Congo.
The Commercial Court, in an electronic judgment on Monday, ruled in favor of the bank. Justice Stephen Mubiru determined that Rwalinda could not pursue his claim due to the illegal nature of the transaction.
Court documents reveal that in August 2017, Green Global Corporation sent $422,957.50 followed by $73,262.50 to Rwalinda’s dollar account at Stanbic’s Bugolobi Village Mall branch. The bank reversed the smaller amount after deeming it suspicious and reporting it to the Financial Intelligence Authority when Rwalinda failed to explain the funds’ source.
Rwalinda argued the reversal breached their banking agreement and demanded recovery of the money plus damages. Stanbic countered that the transfers were irregular, with the sender requesting reversal amid an alleged investment scam.
Justice Mubiru applied the Anti-Money Laundering Act and the doctrine of wilful blindness, noting Rwalinda’s shifting stories about gold, oil, transport, and construction deals. Evidence linked the funds to M23, a UN-sanctioned group, and showed Rwalinda spent much on personal expenses.
Rwalinda admitted in police statements to acting as an intermediary in gold deals involving unlicensed dealers and M23 rebels. The judge found he neglected to check the funds’ origins, deeming his actions money laundering despite no specific crime proven.
Even though the bank reversed funds without a court order, the contract was unenforceable under the principle ex turpi causa non oritur actio—no action from a dishonorable cause. Rwalinda must cover Stanbic’s legal costs.
Source: The Observer (Uganda)