Police arrest eight Stanbic Bank staff over pension fraud

Thursday February 14 2013

By Dear Jeanne


Detectives at the Special Investigations Unit (SIU) have arrested eight senior staff of Stanbic Bank from branches countrywide in connection with fraudulent transfers of pensioner’s money, embezzlement and causing a financial loss.

The group, which includes branch managers and tellers, is alleged to have connived with a number of individuals still at large, to withdraw money from accounts of retired government officials and dead pensioners by making the respective accounts active.

Police spokesperson Judith Nabakooba said the officials, who were arrested on Tuesday, were under investigations over the loss of different sums of money, ranging from Shs50 million to Shs200m.
“Police are still carrying out investigations into how the fraud was orchestrated through questioning and getting statements from the individuals,” Ms Nabakooba said.

This is part of the wide investigations into fraud in the pension sector, which has so far seen eight suspects, including the interdicted Permanent Secretary Ministry of Public Service, Mr Jimmy Lwamafa, charged in court. So far two files have been sanctioned for prosecution, including the fraud of Shs165 billion paid to ghost pensioner and $87,000 allegedly paid out to foreign pensioners from Kenya.

Other files like the Shs88.2 billion alleged contribution to NSSF by pensioners are still under investigations. More than 20 officials from different government departments and private sector are currently out of police custody on bond, including those in court for prosecution.