The State House Anti Corruption Unit has 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.
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 yesterday.