Stanbic Bank Uganda Investigates Alleged Mismanagement of Credit Reference Bureau Fees
Stanbic Bank Uganda is taking strict action against staff members suspected of unethical behavior. Currently, more than 100 employees are under scrutiny for their alleged mishandling of Credit Reference Bureau (CRB) fees.
These employees come from various departments, including business bankers, personal bankers, affluent bankers, affluent managers, and direct sales agents (DSAs).
CRB fees are payments made by individuals applying for loans. These fees enable the bank to generate a report assessing the borrower’s credit history and financial record.
When clients apply for loans, the bank is required to conduct credit checks using third-party service providers such as Compuscan CRB or Metropol CRB, for which a fee is charged. However, according to sources, instead of depositing these fees into the designated suspense account, many personal bankers have been collecting the money from clients with completed bank deposit slips, with no intention of depositing it.
The fees are then not deposited into the suspense account as required. Instead, loan applications are sent to the loan center along with a copy of the deposit slip, giving the impression that the fees have been paid. However, in reality, the money is not deposited.
This unethical practice has persisted because the bank takes time to detect such irregularities. However, a recent audit revealed discrepancies between the number of reports printed and the amount of money reflected in the suspense account.
Investigations found that some staff members failed to deposit the loan application fees into the suspense account, resulting in losses for the bank and complications in compensating their third-party CRB service providers.
Stanbic Bank Uganda has already dismissed three employees from the eastern region implicated in this scandal. Additionally, there is a case involving Namwanje Irene, an experienced personal banker, who has been given the opportunity to refund the money she allegedly misappropriated.
Another employee, Otim Jorem, a business banker, has chosen to resign voluntarily. The investigation also uncovered potential motives behind the actions of some staff members, such as envy-driven traps or manipulation of performance appraisals.
The bank’s performance appraisal system, according to sources, is susceptible to manipulation by managers who prioritize personal relationships over objective assessments. This has led to disparities in salary and bonus allocations among employees in similar positions.
The suspended staff members have appealed their cases, citing precedents where terminated employees succeeded in their appeals in similar situations.
Outgoing CEO Anne Juuko has been commended for her firm stance against fraud, both within the bank and externally.
