KAMPALA, Uganda | The Buganda Road Chief Magistrate’s Court has reinstated fraud charges against David Balondemu, the chairperson of the Kampala District Land Board, following a request by state prosecutors citing new evidence. The decision, delivered on 12th November 2024, revives a case that was previously dismissed due to insufficient evidence, and it brings to the forefront a complex web of accusations involving multiple high-profile individuals.

Balondemu, alongside co-accused Joseph Ibona, an accountant at Bloom Advocates, and two others, faces 17 serious charges, including forgery, uttering false documents, obtaining money by false pretense, electronic fraud, and conspiracy to commit a felony. The case involves a substantial amount of money allegedly defrauded from both local and international victims in a sophisticated financial scam.

The charges stem from an incident in 2023 when Mr. Kim, a South Korean investor, was enticed into a fraudulent gold deal facilitated by Mugisha, who claimed to know a reputable gold seller. The parties met at Imperial Residence Apartments in Kampala, where gold nuggets were presented to Kim as part of the scheme. Following this, they proceeded to NBS Advocates and Consultants, where a Memorandum of Understanding (MoU) was signed, and Kim made an initial payment of 700 million Ugandan Shillings.

However, after making the payments, Kim realized that he had been defrauded, prompting him to initiate legal action against Balondemu and his associates. Despite the initial dismissal of the case due to lack of evidence, the trial magistrate had indicated that the case could be reopened if new evidence became available.

On Tuesday, state prosecutor Allan Mucunguzi informed the court that further inquiries had uncovered substantial evidence implicating the accused. He requested the court to issue criminal summons for Balondemu and the other two suspects, Eric Mkwe Geoffrey and Ronald Kizito Kaweesa, who have reportedly failed to appear in previous court sessions. Chief Magistrate Dan Mwesigwa granted the request, issuing criminal summons and remanding Ibona in custody pending the next hearing.

The prosecution further alleges that between September 2022 and April 2023, the accused conspired to defraud $553,000 from a United States-based firm. The funds, intended for local business disbursements and statutory compliance fees, were funneled through Bloom Advocates’ dollar account at Stanbic Bank’s Garden City branch.