The Makindye Chief Magistrate’s Court has sentenced a man to six months in prison after he pleaded guilty to tampering with a smartphone acquired through an asset financing scheme, in what authorities say is part of a growing wave of digital fraud.
Joseph Sekiziyivu was arrested on December 24, 2024, after it was discovered that he had unlawfully reprogrammed a Samsung phone he had obtained on a hire-purchase basis from Watu Uganda.
The company offers digital devices under a pay-as-you-go model, allowing customers to make gradual payments.
Court heard that Sekiziyivu deliberately flushed the phone, disabling the embedded software that tracks payments and enforces usage restrictions.
He reportedly attempted to cover his tracks by claiming the device had been stolen.
However, during pre-trial negotiations, he entered a plea bargain, admitted guilt, and waived his right to a full trial or appeal.
Makindye Chief Magistrate Charles Opio Kangira sentenced him to six months’ imprisonment and ordered him to pay Shs650,000 in compensation to Watu Uganda after serving his sentence.
“The sentence was guided by both the gravity of the offence and the mitigating factors, including the accused’s willingness to admit guilt,” said Viola Musiimire, legal manager at Watu Uganda.
Magistrate Kangira noted that the judgment should serve as a warning to individuals attempting to exploit digital financing models, which are becoming an essential part of access to technology in Uganda.
Musiimire echoed the caution, urging the public to respect the terms of asset financing contracts.
“Any attempt to tamper with or interfere with financed digital assets is a criminal act. We will not hesitate to pursue legal action against perpetrators,” she said.
The case reflects a larger challenge emerging within Uganda’s digital finance ecosystem.
Last November, City Hall Chief Magistrate Edgar Kalyegira remanded five individuals accused of operating a sophisticated phone-flashing syndicate that allegedly tampered with more than 3,000 devices obtained through loan arrangements.
The group faced multiple charges including device theft, identity theft, and attempted fraud.
According to Japheth Kawanguzi, team leader at the Innovation Village, phone flashing is far more than a technical workaround—it’s a gateway to more serious digital crimes.
“What appears to be a simple manipulation is, in fact, a powerful tool for cybercriminals," he said.
"Flashed phones can be used to access personal and financial data, leading to identity theft, online scams, and unauthorized mobile money transactions,” he said.
Kawanguzi warned that as Uganda’s digital economy continues to grow, cyber threats linked to such activities will likely escalate unless urgently addressed.
The sentencing of Sekiziyivu is one of the first convictions tied directly to tampering with digitally financed assets, and stakeholders hope it sets a precedent for stricter enforcement in the sector.