Former DFCU banker pinned over sh709m theft

A former Dfcu banking officer accused of stealing sh709m lent sh5m to one of his church members without any interest, court has heard.

Jane Tereza Ikiring, a housewife from Mbuya, a city suburb said she borrowed sh5m from Grace Kakooza to pay schools fees without any terms and conditions to pay back.

Testifying before the Anti- Corruption Court Thursday as prosecution witness number four, Ikiring said she was dismayed when she was arrested for allegedly conniving with Kakooza to steal money from Dfcu bank.

Ikiring said she knew Kakooza as a committed born again Christian whom she met at Mbuya Pentecostal Church.

"I was shocked to learn that Kakooza had stolen money. I could not believe it," Ikiring said.

Earlier on the first prosecution witness, Kate Kabahindi, the former employee of DFCU bank told court that Kakooza initiated those fraudulent transactions.

Kabahindi cited Sheraton Hotel payments which she said was less paid and Kakooza had been tasked to explain the anomalies but he failed.

Kabahindi testified that bank realised the fraud in September 2013 after several DFCU bank customers complained that they had not received their money or had been paid less for several months.

She said she received complaints through emails from the management of Sheraton Hotel that Kakooza had been tasked to give explanation about the transactions but he was not co-operative.

Quizzed by the defence lawyer Jolly Mutumba, Kabahindi said she knew the circumstance under which the fraud was committed.

"There was violation where passwords were shared and one person could become "several" to initiate, validate and approve. Even if there were weaknesses in the system it does not mean you should steal. Integrity is key in banking" Kabahindi said.

According to prosecution a total of sh709, 530,413 was lost in a fraudulent transaction that was allegedly initiated by Kakooza.

Kakooza is charged with embezzlement and causing financial loss to DFCU bank. He allegedly committed the offences between October 2012 and September 2013.He denied the charges.

Prosecution led by state attorneys Tom Walugembe and Innocent Aleto said while Kakooza was employed as a banking officer, he came up with a scheme to defraud the bank when he allegedly recruited accomplices whose accounts he used to defraud the bank.

Prosecution also accused Kakooza of transferring some of the money to his personal account in Centenary bank and also transfer funds illegally to his accomplices' bank accounts.