Businessmen named as fraud masterminds
People line up to withdraw money at an Equity Bank ATM in Kabalagala along Ggaba road, Kampala recently. PHOTO/ FILE
What you need to know:
- On March 20, five people, among them employees of Equity Bank in Uganda, were remanded over accusations of money laundering in regard to disbursement of Shs62b of unsecured loans to unqualified persons.
Two men have been arrested and detained over alleged fraud in regard to loss of billions of shillings in unsecured loans from Equity Bank.
Police detectives on Thursday arrested two former employees of Airtel Uganda and detained them at Kampala Central Police Station.
The two, according to police detectives, are facing fraud-related charges of causing financial loss to the bank.
Mr Patrick Onyango, the Kampala Metropolitan Police spokesperson, said they are being investigated “for causing financial loss.”
Police detectives, who declined to be named, revealed one of the suspects, a former sales manager at Airtel Uganda, used different people’s names to open up bank accounts through which the bank was defrauded of more than Shs10b.
According to the detectives, another suspect is also linked to 179 fictitious companies that were created to defraud Equity Bank using different persons to obtain more than Shs35b.
The arrest of the two suspects brings to seven the number of people arrested over fraud in connection with acquisition of unsecured loans by unqualified persons.
On March 20, five people, among them employees of Equity Bank in Uganda, were remanded over accusations of money laundering in regard to disbursement of Shs62b of unsecured loans to unqualified persons.
The five suspects were arraigned before the Anti-Corruption Magistrate’s Court on charges of obtaining credit by false pretence, money laundering and conspiracy to defraud.
Those on remand include Mr Julius Musiime, the head of Agency Banking at Equity Bank; Ms Erina Nabisubi, a relationship manager for Airtel; Mr Fred Semwogerere, a banker; Mr Tumuhimbise Cresent Tibarwesereka, a relationship officer; and Wycliff Asiimwe, a distribution and marketing consultant with a microfinance facility.
Prosecution
Prosecution alleges that between 2021 and 2024 at Equity Bank in Kampala City, Ms Nabisubi, being a person employed as a relationship manager-in-charge of telco, incurred a debt of Shs6.55b from Equity bank falsely representing that the loans were being applied for by Gladys Najjemba, who she fronted as having fulfilled the bank requirements for accessing the loans whereas not.
The state contends that Ms Nabisubi incurred a debt of Shs300m from Equity Bank falsely, stating that the loans were being applied for by Latiffa Nagawa, who she fronted as having fulfilled the bank requirement for accessing the loans whereas not.
It is alleged that between 2021 and 2024 at Equity Bank headquarters situated at Church House in Kampala, Ms Nabisubi intentionally impeded the establishment of the true ownership of Shs6.5b, which she fraudulently obtained from Equity Bank as loan through account number 1032100370335 in the name of Gladys Najjemba. She did this purporting that the said funds were applied for by Najjemba as a loan whereas not knowing that the said funds were proceeds of crime.
The state further alleges that Mr Musiime intentionally concealed the true ownership of Shs18m, which he received as gratification from Stella Mutuuza for having fraudulently processed a loan of Shs700m from Equity Bank. This was reportedly done by requiring Ms Mutuuza to deposit the said gratification on the account number 1013101211316 in the name of Gilbert Rwaiheru Kiiza, knowing that the said deposits were proceeds of crime.
According to the charge sheet, in 2021 and 2024 at different places in Kampala and Wakiso districts, Mr Musiime, Nabisubi, Ssemwogerere, Tumuhimbise and Asiimwe allegedly conspired together to defraud Equity Bank of Shs62b by causing the disbursement of unsecured loans to unqualified people.
