Mutebile tells banks to stop internal fraud
Dec 15, 2008
BANKS should stop internal fraud, Emmanuel Tumusiime-Mutebile, the Bank of Uganda governor, has said. During the opening of Bank of Baroda’s Kawempe branch, Mutebile said recent complaints from the public about staff collusion to defraud customers would not be tolerated.
By Ricks Kayizzi
BANKS should stop internal fraud, Emmanuel Tumusiime-Mutebile, the Bank of Uganda governor, has said. During the opening of Bank of Baroda’s Kawempe branch, Mutebile said recent complaints from the public about staff collusion to defraud customers would not be tolerated.
“Banks should ensure that all staff are adequately vetted at the recruitment stage and periodically evaluated to ascertain their competences and integrity,†he said, adding: “This will minimise frequent occurrences of unscrupulous practices, which threaten public confidence in the banking system.â€
However, the offending banks have kept quiet. Recent high-profile cases included one where employees tried to withdraw millions from a client’s account into their own and another one where a client colluded with a branch manager to withdraw more than sh1b from the bank’s account onto a personal account.
Mutebile said while the growth of the financial sector was vital for Uganda’s economy, banks must not forget the need to re-enforce risk management.
“This will ensure safety of depositors’ funds as well as combat economic crimes like money laundering and fraud.â€
J.W. Muwanga, a board member, this year, the Baroda’s profitability had increased by more than 25%.
“The topline growth was, however, subdued on account of fierce competition owing to seven new licences issued by Bank of Uganda besides allowing expansion of branches of existing banks,†he said.
M.D. Mallya, the bank’s chairman and managing director, said it was the best performing subsidiary of the India-based parent bank, having increased its capital base to sh56b, deposits to sh207b, advances to sh108b and a customer base of 47,500.
Baroda has eight branches countrywide.
BANKS should stop internal fraud, Emmanuel Tumusiime-Mutebile, the Bank of Uganda governor, has said. During the opening of Bank of Baroda’s Kawempe branch, Mutebile said recent complaints from the public about staff collusion to defraud customers would not be tolerated.
“Banks should ensure that all staff are adequately vetted at the recruitment stage and periodically evaluated to ascertain their competences and integrity,†he said, adding: “This will minimise frequent occurrences of unscrupulous practices, which threaten public confidence in the banking system.â€
However, the offending banks have kept quiet. Recent high-profile cases included one where employees tried to withdraw millions from a client’s account into their own and another one where a client colluded with a branch manager to withdraw more than sh1b from the bank’s account onto a personal account.
Mutebile said while the growth of the financial sector was vital for Uganda’s economy, banks must not forget the need to re-enforce risk management.
“This will ensure safety of depositors’ funds as well as combat economic crimes like money laundering and fraud.â€
J.W. Muwanga, a board member, this year, the Baroda’s profitability had increased by more than 25%.
“The topline growth was, however, subdued on account of fierce competition owing to seven new licences issued by Bank of Uganda besides allowing expansion of branches of existing banks,†he said.
M.D. Mallya, the bank’s chairman and managing director, said it was the best performing subsidiary of the India-based parent bank, having increased its capital base to sh56b, deposits to sh207b, advances to sh108b and a customer base of 47,500.
Baroda has eight branches countrywide.