United Bank for Africa ordered to pay customer Shs 128m over fraudulent withdrawal

What the report says

The High Court in Mbale has ordered United Bank for Africa (UBA) Limited to pay more than Shs 128 million to Ugandan claimant Michael Wilson Mazuno after money linked to compensation for injuries he suffered while working in Afghanistan was withdrawn from a bank account opened in his name by an impostor. The ruling was delivered electronically by Justice Farouq Lubega on September 7, 2026, according to The Observer.

Court documents cited in the report say Mazuno had worked as an armed security guard for Trip Canopy Global Operations Inc. in Afghanistan and was injured in 2020. He later pursued compensation through his lawyers and the U.S. Department of Labour’s workers’ compensation office. The judge found that an account bearing Mazuno’s name and national identification number had been opened at UBA in April 2023 using another person’s photograph, and that Shs 108.23 million deposited into it was later withdrawn in two instalments in August 2023.

Justice Lubega awarded Shs 108.23 million as the withdrawn compensation plus Shs 20 million in general damages, with interest and costs. He rejected UBA’s argument that it owed no duty of care because Mazuno was not its customer, saying banks can in some cases be liable to third parties when poor verification leads to foreseeable harm. The court said the bank failed to properly confirm identity and address details and ignored warning signs, including the account’s recent opening and the rapid withdrawal of a large deposit.

The decision is significant because it underscores the legal risks banks face when customer verification and anti-fraud checks are weak.