Three additional individuals, including a former employee of Equity Bank, found themselves remanded in connection with a purported fraud scandal involving the misappropriation of billions of shillings in unsecured loans from the bank. Among those remanded are two former employees of Airtel Uganda, who have since transitioned into the field of entrepreneurship, identified as Godfrey Mukwaya and Robert Mugumya. Also implicated in the affair is Fred Kato, a former head of Small and Medium Enterprises at Equity Bank. All three individuals were presented before the Magistrates Court of the Anti-Corruption Division on charges of conspiracy to defraud, where they were notably not allowed to enter pleas.
The accusations levied against Mr. Mukwaya paint a picture of orchestrated deception, alleging that the former Airtel Uganda sales manager orchestrated a scheme involving multiple individuals to open bank accounts used in defrauding Equity Bank of over Shs10 billion. Similarly, Mr. Mugumya stands accused of involvement with 179 fictitious companies allegedly created to defraud Equity Bank, resulting in losses exceeding Shs35 billion.
In a move that further underscores the gravity of the situation, the presiding magistrate, Mr. Albert Asiimwe, opted against allowing the accused individuals to plead to the charges, citing their involvement in a larger case related to money laundering, a matter within the jurisdiction of the High Court. Mr. Asiimwe advised the accused that their pleas would be entertained at the High Court, which possesses the requisite authority to adjudicate over the complex array of charges.
This recent development adds to the growing list of suspects embroiled in the alleged scam involving unsecured loans totaling more than Shs62 billion disbursed by Equity Bank. Notably, on March 20, 2024, five individuals, including employees of Equity Bank, faced charges related to money laundering in connection with the disbursement of these substantial loans to unqualified recipients.
Among those arraigned in March were Mr. Julius Musiime, Ms. Erina Nabisubi, Mr. Fred Semwogerere, Mr. Cresent Tibarwesereka, and Mr. Wycliff Asiimwe. The prosecution alleges a litany of fraudulent activities, including obtaining credit through false pretenses, money laundering, and conspiracy to defraud, with Ms. Nabisubi purportedly playing a central role in the misrepresentation of loan applications.
According to the state, Ms. Nabisubi allegedly facilitated loans totaling Shs6.55 billion under false pretenses, falsely attributing loan applications to individuals who had not met the bank’s requirements. Similarly, she is accused of securing an additional Shs300 million in loans by deceiving the bank regarding the identity of the loan applicants. Furthermore, Mr. Musiime is alleged to have knowingly concealed the origin of a gratification of Shs18 million, received from Stella Mutuuza, as a reward for facilitating a fraudulent loan transaction amounting to Shs700 million.
These accusations paint a troubling picture of systematic deception and financial malfeasance within the corridors of Equity Bank, highlighting the need for rigorous oversight and accountability measures within Uganda’s banking sector.
