The High Court in Mbale has ordered United Bank for Africa (UBA) Uganda Limited to pay Shs128.23 million to a man whose US$30,000 compensation was diverted through a bank account opened in his name by an impostor.

Justice Farouq Lubega, in a judgment delivered electronically on 7 September 2026, found the bank negligent and fraudulent for failing to properly verify the identity and physical address of the person who opened the account.

The case was brought by Michael Wilson Mazuno, who sued UBA over the loss of Shs108,230,400 that he was owed as compensation for injuries sustained while working as an armed security guard in Afghanistan.

According to court records, Mazuno was employed by Trip Canopy Global Operations Inc., an American private security company, in January 2019.

In 2020 he fell from a guard tower and suffered multiple injuries, including spinal damage, hearing impairment and psychological trauma.

He pursued a workers’ compensation claim against his former employer through his American lawyers and the US Department of Labour’s Office of Workers’ Compensation Programs.

The claim was settled with an award of US$30,000, equivalent to Shs108.23 million at the time.

The funds were remitted to a bank account that his lawyers believed belonged to him.

When Mazuno followed up, he discovered that an account had been opened in his name at UBA on 22 April 2023 and was allegedly operated by an impostor.

The account, number 0768025176, was opened using Mazuno’s National Identification Number (NIN), but the photograph on the identification document did not match him.

The compensation was deposited on 10 August 2023 and withdrawn in two transactions on 10 and 11 August.Justice Lubega said the bank should have detected several red flags.

The account had been opened only a few months earlier and had remained largely inactive before receiving the large sum.

Although it had a daily withdrawal limit of Shs15 million, the impostor withdrew Shs85 million on 10 August and a further Shs23.23 million the next day.

The judge noted that the bank had dismissed Job Ariebi, an officer involved in opening the account.

He ruled that these circumstances should have prompted closer scrutiny.

Justice Lubega rejected UBA’s argument that it could not be held liable because Mazuno was not a direct customer.

He held that the bank owed Mazuno a duty of care under the “neighbour principle”.

The court found that UBA failed to verify the physical address of the account opener and did not properly check the photograph against National Identification and Registration Authority (NIRA) records.

Although the bank’s witnesses said its NIN verification system did not display photographs, the judge ruled this did not absolve it of responsibility.

He further found that the bank acted fraudulently by opening the account without proper verification and by authorising withdrawals that exceeded the daily limit.

Although the bank did not directly take the money, the judge held that its negligence caused the loss.

He ordered UBA to compensate Mazuno with Shs108,230,400 for the financial loss and Shs20 million in general damages for trauma and distress.

The bank was also ordered to pay the costs of the suit and 8% interest on both sums from the date of judgment until full payment.

The court declined to award exemplary damages.