The High Court in Kampala has delivered a damning judgment exposing Fabrice Brad Rulinda, the Mayor of Entebbe Municipality, in a controversial financial scheme linked to illegal gold dealings with the March 23 Movement (M23)rebels operating in eastern Democratic Republic of Congo.
In a scathing ruling delivered on Monday, Justice Stephen Mubiru concluded that Rwalinda’s conduct amounted to money laundering, dismissing his lawsuit against Stanbic Bank Uganda and affirming that the bank acted lawfully when it reversed a suspicious US$73,262.50 transfer and froze his account.
The judgment lifts the lid on a shadowy network of mineral traders, foreign businessmen and rebel-linked actors who allegedly attempted to channel funds through Uganda’s banking system using the Entebbe mayor as a middleman.
Court: Mayor acted as financial conduit for M23 deal
According to court records, Rulinda admitted during investigations that he facilitated meetings between foreign gold buyers and individuals associated with the M23 rebel movement, an armed group sanctioned by the United Nations for destabilising eastern Congo.
The meetings reportedly took place in Kampala hotels before the parties agreed that money would be wired into Rulinda’s personal account and later withdrawn for delivery to the rebels.
Justice Mubiru said the arrangement raised glaring red flags.
The judge noted that Rulinda deliberately chose not to verify the source of the funds, admitting that he “was not interested in knowing” where the money came from — a position the court described as wilful blindness.
“Criminal money laundering dressed as business”
The ruling paints a picture of a transaction riddled with inconsistencies and suspicious movements of large sums of money.
Within days of receiving nearly half a million dollars in deposits, Rulinda withdrew massive cash amounts and made a string of expenditures including foreign purchases and tuition payments.
The court also found that the mayor gave multiple contradictory explanations for the funds, claiming at different times that they were meant for gold trading, oil deals, transport investment and construction ventures.
Justice Mubiru dismissed the explanations as implausible, ruling that the transaction did not resemble normal commercial activity but rather a scheme designed to disguise criminal proceeds.
Stanbic cleared as court backs anti-money laundering action
Rulinda had sued Stanbic Bank Uganda claiming breach of contract after the bank reversed one of the transfers and blocked his account.
However, the court ruled that the bank acted within the law and in the public interest after identifying the transactions as suspicious and reporting them to the Financial Intelligence Authority.
The judge emphasised that financial institutions have a legal obligation to halt transactions suspected of involving proceeds of crime.
M23 mineral trade under scrutiny
The judgment also highlights the wider regional problem of conflict minerals, noting that rebel groups such as M23 have long financed their operations through illicit gold mining and smuggling networks in eastern Congo.
Justice Mubiru observed that such networks often rely on intermediaries and legitimate financial systems in neighbouring countries to disguise proceeds from illegal mineral trade.
By routing the funds through his personal bank account, the court said, Rulinda helped provide a veneer of legitimacyto funds tied to an illicit network linked to the rebel group.
Political fallout looming
The ruling is likely to spark serious political fallout for the Entebbe mayor, who now faces intense scrutiny over his alleged role in financial dealings tied to one of the most controversial rebel movements in the Great Lakes region.
His entire suit seeking recovery of the US$73,262.50, damages and interest was dismissed, bringing the explosive case to a close while raising broader questions about cross-border mineral trafficking networks operating through Uganda’s financial system.
