SAGE CASH! Court Clears Centenary Teller in Sh57M Elderly Funds Theft Drama, Pokes Holes in State House Anti-Corruption Probes

The acquitted suspects are Josephine Naluyima, 30, a teller at Centenary Bank
Shock and embarrassment have rocked anti-corruption investigators after the Chief Magistrate’s Court in Tororo acquitted two suspects accused of stealing Shs57 million meant for elderly people under the Social Assistance Grants for Empowerment (SAGE) program.
In a ruling that punched holes in investigations led by the State House Anti-Corruption Unit headed by Gen. Henry Isoke, Chief Magistrate Irene Nantabya declared that the prosecution had completely failed to prove the case beyond reasonable doubt.
The acquitted suspects are Josephine Naluyima, 30, a teller at Centenary Bank, and David Asangai, 48, a Community Development Officer.
The duo had been accused alongside others still at large of conspiring to steal Shs57.4 million belonging to the SAGE stipend program for elderly people across Nagongera, Paya, Pajwenda, Nabuyoga, Mulanda, Iyolwa, Molo, Magola and So Sop in Tororo District, as well as Busitema and Sikuda sub-counties in Busia District.
State prosecutors alleged that the suspects masterminded the theft of the cash meant for vulnerable elderly beneficiaries under the government empowerment program.
The arrests had been carried out by the State House Anti-Corruption Unit working together with the Uganda Police Force after what investigators described as a tip-off.
Naluyima was dramatically picked up from Luwero District while Asangai was arrested in Tororo town before both were charged with theft and conspiracy to commit a felony and remanded to Morukatipe Farm Prison.
But in a stunning courtroom twist, Magistrate Nantabya dismantled the prosecution’s evidence, pointing to inconsistencies in witness statements, major gaps in the chain of evidence and lack of corroborating material linking the accused to the alleged crime.
The magistrate ruled that identification of the accused persons was unreliable and that prosecutors failed to establish any direct connection between the suspects and the allegedly stolen money.
Although the state attempted to rely on witness testimony and circumstantial evidence, the court found gross contradictions in the prosecution’s case and noted the absence of forensic or documentary proof tying Naluyima and Asangai to the offense.
In one of the ruling’s biggest bombshells, the magistrate went a step further and ordered authorities to consider reinstating the two accused officials after finding them innocent.
“This court also directs the office of the Chief Administrative Officer Tororo to lift the interdiction of Asangai and reinstate him and equally to the Centenary Rural Bank to consider reinstating Naluyima since court has found them innocent,” Magistrate Nantabya ruled.
The state prosecutor was advised to consider filing an appeal if dissatisfied with the court’s decision.
The dramatic acquittal has since triggered debate among residents, legal observers and anti-corruption watchers in the region, with many saying the ruling exposes weaknesses in investigations and raises serious questions about how criminal cases are handled before being rushed to court.
Legal observers argued that the judgment sends a strong warning to investigators and prosecutors that theft and conspiracy cases require solid evidence, proper forensic backing and credible witness testimony if convictions are to stand in court.
