VZCZCXRO3977
RR RUEHDT RUEHLMC RUEHROV
DE RUEHKM #0846/01 2160746
ZNR UUUUU ZZH
R 040746Z AUG 09
FM AMEMBASSY KAMPALA
TO RUEHC/SECSTATE WASHDC 1650
INFO RUEAWJA/DEPT OF JUSTICE WASHDC//OPDAT//
RUCNMCT/MCC THRESHOLD COLLECTIVE
RUCNIAD/IGAD COLLECTIVE

UNCLAS SECTION 01 OF 02 KAMPALA 000846 
 
DEPARTMENT PASS TO MCC (CHAKA) 
DOJ FOR OPDAT (ALEXANDRE, SILVERMAN, EHRENSTAMM AND LAHAIE) 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PGOV PHUM EAID KCOR UG
SUBJECT: UGANDA: OFFICE BREAK-IN LINKED TO SUCCESSFUL GLOBAL FUND 
PROSECUTIONS 
 
REF: A. Kampala 523, B. Kampala 444 
 
¶1.  (SBU) Summary: Two more Ugandans were sentenced to five years 
imprisonment and ordered to pay 30 million Ugandan shillings 
($14,000) in restitution in the latest Global Fund conviction.  As 
news of the conviction spread, several suspects rushed to repay 
stolen funds in hopes of negotiating immunity.  Others, in hopes of 
stalling further prosecutions, broke into the office of the 
Directorate of Public Prosecutions (DPP) and stole computers, hard 
drives, and other material related to the Global Fund embezzlement 
investigation.  DDP officials quietly suspect Uganda Police Force 
involvement in the break-in, but details surrounding the incident 
remain unclear.  Regardless, DPP Global Fund prosecutions are 
expected to continue.  End Summary. 
 
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Two More Convicted in Global Fund Theft Case 
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¶2.  (U) Elizabeth Ngororano and Annaliza Mondon were found guilty on 
July 14 of embezzlement and 21 counts of uttering false documents in 
the latest prosecution for thefts from the Global Fund for HIV/AIDS, 
Tuberculosis and Malaria (Global Fund - see reftels for background). 
 They were sentenced to five years for embezzlement and received 
concurrent two-year sentences for uttering false documents.  Both 
were ordered to pay restitution of 30 million shillings ($14,000) 
and were remanded into custody immediately.  In announcing his 
decision, Judge Katutsi of the High Court's newly created 
Anti-corruption Division (ACD) commented that "this is yet another 
case where greed has taken an upper hand in administering of public 
funds."  Judge Katutsi rejected the defense's argument that it was a 
mistake as "nonsense," dismissing it with "the utmost contempt it 
deserves." 
 
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Convictions Send Clear Message, Though Reactions Differ 
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¶3.  (U) As news of the latest convictions spread, several suspects 
rushed to repay stolen Global Funds in hopes of gaining immunity 
from prosecution.  Since the July 14 conviction of Ngororano and 
Mondon, DPP officials reported that there had been more than seven 
instances where suspects repaid funds ranging from 20 million to 65 
million Ugandan shillings.  However, the DPP has made no agreements 
to drop its investigations or prosecutions against any of the Global 
Fund targets, even if restitution is paid. 
 
¶4.  (SBU) As DDP officials celebrated another successful conviction 
and what many hoped would be perceived as a tough message on 
corruption, at least one well-connected mystery suspect was resolute 
that justice would not take its course.  On July 8, several 
individuals broke into DPP offices to steal Global Fund 
investigative materials.  Using five different keys that were only 
provided to staff, the burglars entered the unmarked Global Fund 
investigation room, removed computer hard drives, and took CPU chips 
that contained scanned copies documentary evidence.  A laptop from 
the DPP Director's office and his secretary's hard drive were also 
taken.  However, they failed to steal the server which backed-up all 
the files, the physical DPP files, and the prosecution memos 
outlining the charges, case theories, and analysis of possible 
defenses. 
 
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Some in DPP Quietly Suspect Police Involvement 
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¶5.  (SBU) While the details surrounding the DPP office break-in 
remain unclear, DPP officials quietly suspect Uganda Police Force 
(UPF) involvement.  Several months ago, high-ranking police 
officials asked the DPP to return some of the Global Fund files to 
the UPF.  Shortly after the DPP refused to release the files, a 
major reorganization of the UPF's Criminal Investigation Division 
(CID) resulted in the transfer and reassignment of the commanders 
and many personnel of the Anti-Corruption Units.  The investigators 
assigned to the joint CID/DPP Global Fund investigative teams were 
also transferred with the replacements having no familiarity with 
the Global Fund cases.  When the police restructuring did not stall 
the DPP investigations, some allege, 960 million Ugandan shillings 
allocated to the DPP to carryout the Global Fund investigation 
vanished from its bank account.  The money was traced to the 
Ministry of Internal Affairs, which is responsible for the UPF. 
From there, the money seems to have disappeared.  An investigation 
has been initiated, but the money has yet to be returned to the 
DPP's account. 
 
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KAMPALA 00000846  002 OF 002 
 
 
Comment 
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¶6.  (SBU) The latest convictions might be changing the way 
corruption cases are handled in Uganda.  Quick trials, findings of 
guilt, lengthy prison sentences, and orders for full restitution 
were unheard of before the creation of the ACD.  Since its 
inception, and with substantial support from the USG under the 
Millennium Challenge Account Threshold Program, the ACD has 
concluded three separate trials and found all four persons guilty, 
sentenced each to imprisonment from five to ten years, and ordered 
repayment of all stolen funds.  This has clearly shaken-up a few 
well-connected individuals who fear that they could be next.  The 
DPP will have to institute stronger security measures to safeguard 
the remaining materials, but is expected to move forward with more 
prosecutions. 
 
HOOVER