The High court in Mbale has ordered United Bank for Africa (UBA) Limited to pay more than Shs 128 million to a Ugandan man whose compensation for injuries sustained while working in Afghanistan was fraudulently withdrawn from an account opened in his name by an impostor. Justice Farouq Lubega ordered UBA to pay Michael Wilson […] The post United Bank for Africa ordered to pay customer Shs 128m over fraudulent withdrawal appeared first on The Observer Media Ltd .
The High court in Mbale has ordered United Bank for Africa (UBA) Limited to pay more than Shs 128 million to a Ugandan man whose compensation for injuries sustained while working in Afghanistan was fraudulently withdrawn from an account opened in his name by an impostor.
Justice Farouq Lubega ordered UBA to pay Michael Wilson Mazuno Shs 108.23 million, representing the compensation that was fraudulently withdrawn, and a further Shs 20 million in general damages.
The judge also ordered the bank to meet the costs of the suit and directed that the Shs 128.23 million award attract interest at eight per cent per annum from September 7, 2026 until payment in full.
Justice Lubega delivered the judgment electronically to the advocates representing the parties on September 7, 2026. Mazuno sued UBA in 2024, accusing the bank of negligence, fraud, breach of duty of care and conversion after an impostor allegedly opened an account in his name and received his compensation.
Court documents show that Mazuno was employed in January 2019 as an armed security guard by Trip Canopy Global Operations Inc., an American private security company operating in Afghanistan.
In 2020, Mazuno fell from a guard tower and sustained multiple injuries, including spinal damage, hearing impairment and psychological trauma.
He subsequently pursued compensation from his former employer through his lawyers and the United States Department of Labour’s Office of Workers’ Compensation Programs.
His lawyers later informed him that his claim had been settled and that compensation of $30,000 had been approved and remitted to a bank account held in his name at UBA.
However, when Mazuno followed up on the payment, he discovered that an account bearing his name and National Identification Number (NIN) had been opened at UBA on April 22, 2023, but carried a photograph of another person.
The Shs 108.23 million deposited on the account was subsequently withdrawn in two instalments on August 10 and 11, 2023. Mazuno argued that UBA had failed to properly verify the identity and physical address of the person who opened the account and had not carried out adequate Know Your Customer (KYC) checks.
UBA denied liability, arguing, among other things, that Mazuno was not its customer and therefore the bank did not owe him a duty of care.
Justice Lubega rejected that argument, ruling that a bank’s duty of care can, in appropriate circumstances, extend to third parties where negligent or unlawful conduct causes foreseeable harm.
The judge found that UBA had failed to verify the photograph of the person presenting the NIN and had not adequately verified the physical address provided before opening the account.
The court also considered it significant that the account had been opened only a few months before receiving more than Shs 108 million, after which the entire amount was withdrawn despite the account having a daily withdrawal limit of Shs 15 million.
Justice Lubega said these circumstances constituted red flags that should have prompted the bank to carry out further due diligence and take steps to prevent the suspected fraud.
The court also considered evidence from a former branch manager indicating that some bank staff involved in opening the account had faced disciplinary action.
Justice Lubega concluded that UBA had failed to exercise the requisite care and good faith when opening the account and allowing the funds to be withdrawn.
“I find that the defendant Bank acted fraudulently in opening Bank Account No. 0768025176 without properly verifying the identity and physical address of the purported account holder,” the judgment states.
The judge also rejected UBA’s argument that it could not be held liable because the bank itself had not taken Mazuno’s money.
Instead, Lubega found that the bank’s negligence had caused the financial loss and consequently ordered it to compensate Mazuno for the money withdrawn from the fraudulent account.
However, the judge declined to award exemplary damages, holding that an additional punitive award would be excessive after ordering UBA to compensate Mazuno and pay general damages.
The bank was also ordered to meet the costs of the suit.
The post United Bank for Africa ordered to pay customer Shs 128m over fraudulent withdrawal appeared first on The Observer Media Ltd.
