Title: Three More Suspects Remanded in Equity Bank’s Billion Shilling Fraud Scandal
magnetic-scroll: ‘Magistrate’s Court, Kampala’
Three former Equity Bank and Airtel Uganda employees charged with conspiracy to defraud in the ongoing Equity Bank’s unsecured loans scandal.
This week, three more suspects have been remanded in connection to an ongoing investigation into the loss of billions of shillings in unsecured loans from Equity Bank. The suspects, appearing before the Magistrates’ Court of the Anti-Corruption Division, include:
- Godfrey Mukwaya, a former sales manager at Airtel Uganda
- Robert Mugumya, a former Airtel Uganda employee now turned businessman
- Fred Kato, a former head of Small and Medium Enterprises at Equity Bank
Charges
The suspects were charged with conspiracy to defraud, an offense that carries a maximum sentence of seven years if found guilty.
magistrate-decision: ‘Reasoning Behind Denying the Accused Their Plea’
Magistrate Albert Asiimwe explained the reasoning behind denying the accused their plea. He stated that the cases were interconnected to money laundering charges that could only be tried by the High Court. He advised them, “While this court has the power to handle the conspiracy case, this one is emanating from money laundering. You will plead to the charges in the High Court, which has the authority to entertain all the cases.”
Implicated Suspects
With the addition of these three suspects, the number of individuals implicated in the Equity Bank unsecured loans scandal rises to eight. Previously, five individuals were charged with money laundering in connection to the disbursement of over Shs62b in unsecured loans to unqualified individuals.
Previously Charged Suspects
The five suspects include:
- Julius Musiime, the head of agency banking at Equity Bank
- Erina Nabisubi, a relationship manager
- Fred Semwogerere, a banker at Equity Bank
- Cresent Tibarwesereka, a relationship officer
- Wycliffe Asiimwe, a distribution and marketing consultant with a microfinance facility
The charges against these suspects include obtaining credit by false pretense, money laundering, and conspiracy to defraud. Their trial began on March 20, 2024.
Allegations against Nabisubi
Nabisubi, the alleged mastermind behind the fraud, is accused of defrauding Equity Bank of Shs6.55b by falsely claiming loans in the names of Gladys Najjemba and Latiffa Nagawa, neither of whom had met the bank’s loan requirements. Nabisubi is also charged with concealing the true ownership of the Shs6.5b fraud proceeds.
Musiime’s Involvement
Musiime is accused of intentionally concealing the proceeds of bribes, worth Shs18m, from Stella Mutuuza. The bribes were allegedly given for facilitating the fraudulent processing of a Shs700m loan for Mutuuza, unaware that the funds were proceeds of crime.
Proceedings
The proceedings against the suspects continue in the Anti-Corruption Court.