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Three more employees of Equity Bank have been remanded to Luzira Prison on allegations of conspiracy to defraud the bank of sh62b. This brings the number of staff charged and remanded to eight.

The Anti-Corruption Court senior principal magistrate grade one Abert Asiimwe remanded Fred Kato, Robert Mugumya and Godfrey Mukwaya to Luzira Prison until May 22, 2024, when they will return to court to know the status of investigations in the matter.

On April 16, 2024, the magistrate also declined the accused persons to plead to the charges, saying the lower court has no jurisdiction to handle the charges of money laundering.

“I advise you to apply for bail in the High Court because this court has no jurisdiction to hear the offence, which is capital in nature,” Asiimwe said.

Last week, the security personnel also arrested the former Equity Bank executive director in charge of commercial banking Kenneth Onyango over the same offence but police released him on bond. He is yet to appear in court.

👉Ex-Equity Bank ED arrested over sh62b fraud
👉Ex- Equity Bank ED to appear in court over sh62b fraud

The former Equity Bank executive director in charge of commercial banking Kenneth Onyango. (File)

Others

The other staff, who were earlier charged and remanded to Luzira Prison include the head of agency banking Julius Musiime, relationship manager Erina Nabisubi, banker Fred Ssemwogerere, Crescent Tumuhimbise Tibarwesereka and distribution and marketing consultant Wycliff Asiimwe.

The accused persons applied for bail in the High Court but their application is still pending ruling before Justice Lawrence Gidudu.

Allegations

The prosecution led by chief state attorney Raymond Mugisa and state attorney Pamela Orokot from the Office of the Director of Public Prosecutions (ODPP), alleges that Musiime, Nabisubi, Ssemwogerere, Tibarwesereka, and Asiimwe conspired to defraud Equity Bank of sh62b between 2021 and 2024 in various places within Kampala city and Wakiso district.

They are accused of fraudulently causing the disbursement of unsecured loans to unqualified people.

Regarding the charge of obtaining credit by false pretences, where Nabisubi is facing the charge alone, it is alleged that between 2021 and 2024 at Equity Bank Church House in Kampala, while employed as a relationship manager, Nabisubi incurred a debt of sh300m from Equity Bank by falsely claiming that the loans were applied for by Latiffa Nagawa and that she had fulfilled the bank's requirements for accessing loans.

Additionally, still on the charge of obtaining credit by false pretence, the prosecution alleges that between 2021 and 2024 at Church House, Nabisubi intentionally concealed the ownership of sh6.5b that she fraudulently obtained from Equity Bank, purporting that the money was applied for by Gladys Najjemba as a loan, whereas not.

It is further alleged that Nabisubi in 2021 and 2024, while employed as a relationship manager, concealed the ownership of sh6.5b, which she fraudulently obtained through account number 1032100370335 in Gladys Najjemba’s name claiming that the money was applied for by Najjemba as a loan.

Pertaining to the charge of money laundering against Musiime, it is alleged that between 2021 and 2024 at Equity Bank Church House, he concealed the ownership of sh18m, which he received as gratification from Stella Mutuuza for processing a loan of sh700m from the bank in the name of Gilbert Rwaheru Kizza, knowing that the money was proceeds of crime.

What the law says

Section 3 of the Anti-Money Laundering Act states that any person convicted of money laundering is liable to 15 years in jail or a fine not exceeding sh2b.

Section 309 of the Penal Code Act stipulates that a person who conspires with another to commit an offence of conspiracy to defraud is liable on conviction to five years in jail.

The offence of obtaining credit by false pretence under the Penal Code is a misdemeanour and the sentence is on the discretion of the court.