The State House Anti Corruption Unit last Friday re-arrested city lawyer David Balondemu over a new fraud case involving an American company.
Balondemu who is also the Kampala District Land Board chairperson was arrested for allegedly defrauding shs2.2billion from KG Unlimited LLC, an American Company in a purported procurement of a water plant by Ministry of Agriculture.
It is alleged that the fraudsters purported that Public Procurement and Disposal of Public Assets Authority (PPDA) was conducting the procurement on behalf of the Ministry of Agriculture and all the money was paid through an account of M/s Bloom Advocates.
It is alleged that Balondemu is the proprietor of the law firm through proxies.
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KG Unlimited LLC is owned by Jim Bartholomay and Antonio Talib Mcdowell Sr. Both individuals had retired from senior positions at the international hotel chain Marriott International to pursue business at KG Unlimited.
The development comes a few weeks after Balondemu was arrested by State House Anti Corruption Unit over a bogus deal in which Korean investors were defrauded over shs2.2 billion.
It is alleged that at his offices of M/s Balondemu & Co Advocates along Parliamentary , Balondemu received $600,000( approximately shs2.2billion) by falsely pretending that they were selling 53kilograms of gold to Hyun UK Kim whereas it was not true.
He is accused of using his legal expertise to create an elaborate scheme which convinced the Korean national to release the money.
The lawyer was recently arraigned in court and released on bail before he was re-arrested last week.
Just a few weeks ago, we told of how Bloom Advocates, a law firm in the city, was under investigation for a USD 560,000 heist.
The funds were allegedly stolen from KG Unlimited, a US law firm owned by Jim Bartholomay and Antonio Talib Mcdowell Sr. Both individuals had retired from senior positions at the international hotel chain Marriott International to pursue business at KG Unlimited. They claim that they were defrauded of nearly their entire lifetime savings.
KG Unlimited was reportedly lured into a fraudulent deal to supply water systems to the Government of Uganda by Lwanga Charles Ggongola and Kavuma Nicholas, operating through an extinct company called Kampala Consultants Group Limited.
KG Unlimited was convinced to incorporate a local company, Kolmer Distribution Services-SMC, which would supposedly be awarded the contract. Antonio Talib Mcdowell Sr. registered this company and nominated Lwanga Charles Ggongola and Kavuma Nicholas.
KG Unlimited paid USD 560,000 as a performance guarantee for the contract through Bloom Advocates’ Managing Partner Jonathan Isiko.
However, both the law firm and Lwanga Charles Ggongola and Kavuma Nicholas allegedly cut off communications with KG Unlimited after receiving the funds.
Upon suspecting fraud, the American firm sought help from the American Embassy, which advised them to seek legal assistance.
When contacted, counsel Isiko, the Managing Partner of Bloom Advocates, declined to comment.