Uganda clears company accused of links with al-Shabaab

Ugandan security agencies had cleared a Ugandan company and its shareholders of any links with al-shabaab, terrorism financing and money laundering charges, court records have shown.

The United States on Monday sanctioned Haleel Commodities Limited (HCL) and some of its shareholders, including Farhan Hussien Haidar and Omar Sheikh Ali Hilowle on allegations of terrorism financing and money laundering. All their assets and finances under the US jurisdiction were frozen and they cannot operate with any US companies or institutions.

Details have emerged that HCL was among the nine entities whose funds the Financial Intelligence Authority (FIA) froze in 2018 and 2019 on allegations of funding terrorism and money laundering. The others were Victory Group of Companies Limited, Sundus Exchange & Money Transfer Limited, Qemat Al Najah Gen Trade Limited, City Love General Trading Limited, Hilowle General Trading Company Limited, and individuals Jumale Bashir Ali, Omar Sheikh Ali and Abdulkadir Omar Abdulahi.

On April 25, 2018, the FIA started to freeze the funds after getting complaints from Somali and Kenyan authorities that al-Shabaab was channelling money to the suspects in Uganda contrary to the Anti-Terrorism (Amendment) Act 2015.

Officials from FIA involved the police and the Chieftaincy of Military Intelligence (CMI), now Defence Security and Intelligence in the investigations against the suspects. On May 25, 2018, FIA wrote to six banks to freeze the accounts of the companies and their owners.

During investigations, Kenyan and Somali authorities cleared Farhan Hussien Haidar, who was the key suspect, after he allegedly resolved the sticky issues raised as per Section 17A of the Anti-Terrorism (Amendment) Act 2015.

Haidar was accused of coordinating financial and logistical support to terrorist groups in Somalia and Kenya.

Al-shabaab is accused of carrying out terror attacks that killed 78 people in Kampala during the World Cup football finals in 2010. Uganda security forces are currently fighting al-shabaab militants in Somalia.

According to Uganda Registration Services Bureau (URSB), HCL was registered in April 2016, with Haidar owning 60 shares, Hilowle (20 shares) and Jumale (20 shares). The company deals in a range of products, including petroleum and general merchandise.

A Ugandan police team was established to investigate the company. It was during investigations in May 2018 that HCL shareholders amended the company’s ownership to Awale Abdi Jama and Bashar Ali Jumale.

Haidar sold his shares in HCL to Awale Abdi Jama at Shs2m and Bashar Ali Jumale at Shs4m, records at URSB show. Hilowle also sold his shares in the company to Jama at Shs2m.

At the same time, the suspects dragged FIA to the High Court, accusing it of illegally freezing their accounts, but On August 28, 2018, Judge Musa Ssekaana dismissed their petition with costs.

On November 22, 2018, during the investigations, a team of police detectives wrote a report clearing the suspects of any links with terrorism financing. It is alleged that the report was intended for the CID director, but a copy of it was obtained by the suspects.

The Office of the Director of Public Prosecutions (ODPP) disagreed with the police detectives in the way they were handling the case, according to court documents. The ODPP even wrote to the Director of Criminal Investigations complaining about the competency of the detectives and demanded that another team be sent to investigate the case.

Prosecutors led by Kodooli Wanyama told the court that a new team of investigators was sent.

“That initial detectives were incompetent, and the DPP wrote to the Director CIID for another team, which continued with the investigations under the prosecution-led investigations to ensure timely assembling of evidence,” prosecutors told court.

The report, which was written by the initial police team, turned out later to be one of the key pieces of evidence that the suspects used in court to unfreeze their accounts. The prosecutors said the police report wasn’t sent to the ODPP, but to the Director CID. It is not clear how the suspects were able to get a copy of the report yet they didn’t have formal access to it.

CMI, which also investigated the matter, released a report clearing the suspects and a copy was allegedly shared with the suspects.

However, the new police team detected suspected wrongdoings and submitted the case to the ODPP, which sanctioned the charges of money laundering and facilitating money laundering against the suspects.

The suspects, however, declined to appear before court for trial despite several court summons.

Facing arrests, the suspects sought a judicial review seeking to restrain the DPP from proceeding with the investigations and charging them. The FIA, which was the complaint, also pulled out after clearing the suspects, but the DPP insisted on pursuing the case.

On August 20, 2019, Judge Andrew Bashaija agreed with the accused by unfreezing their accounts and stopping charging them with money laundering before he awarded the applicants costs.

After withdrawing all the funds from the accounts, the new HCL shareholders started on the process of winding it up.

Their report to URSB in January 2020 shows they had only Shs4.8m in total assets and funds. On February 10, 2023, HCL was dissolved and URSB was informed.

Police spokesperson Fred Enanga said yesterday that he was unable to comment on the matter since he had not got details from the detectives about the current status of the case.

What FIA says...

When this publication contacted the FIA Executive Director, Mr Samuel Were Wandera, about the US sanctions against HCL and its shareholders, he said they would contact their colleagues to see if there is new evidence that can help in the investigations.

“We have seen the sanctions. The information will be shared with all agencies. We shall study it. The sanctions cover the US and companies under their jurisdiction if the targeted people operate dollar accounts,” Mr Wandera said on Tuesday.

Mr Wandera said FIA is not mandated to enforce the US sanctions so they wouldn’t be able to implement them in Uganda. He said they can only implement sanctions if they are issued by the United Nations because the country has signed agreements that it has to abide by.