Ex- Equity Bank manager convicted over sh4.6b theft

Former Equity Bank operations manager David Serwamba has been convicted for embezzling of over sh4.6b from the bank.   

Yesterday, Anti-Corruption Court Judge Margaret Tibulya ruled that there was sufficient evidence to prove that Serwamba deliberately and illicitly channeled the money in question to fraudsters from the bank.

"If find that prosecution has proved beyond suspicion that Serwamba embezzled the money from bank as he is charged and I therefore convict him of embezzling over sh4.6b from bank," he said.

The Judge observed that withdrawal of the money was initiated by Serwamba, claiming that the two Sudanese businessmen Sisco Majok and Ajang Achang traveled from South Sudan to Kampala to withdraw money from their accounts at Equity Bank from Oasis Mall branch in Kampala.

Serwamba who appeared self-confident  was also convicted over money laundering alongside his brother Isaac Serwamba, Reagan Okoth, Moses Kalungi, a lobbyist, Mubarak Shafik, a businessman and Mathew Keeya. They have been on remand for two years.

Depending on the surveillance camera footage, the Judge noted that Serwamba deliberately handed the money to fraudster in the corridors who were clad in enclosed coats.

The Judge found Okoth guilty of causing financial loss to the bank, stating that evidence clearly shows that he knew the money was being channeled to fraudsters when he posted the impugned transaction.

Tibulya convicted Kalungi on three counts of money laundering and conspiracy to commit a crime on grounds that he made the wrong entries well knowing that it was for the purpose of paying fraudsters.

Under the Anti-Money Laundering Act 2013, any person convicted is liable to 15 years in jail upon conviction. While the offence of embezzlement under the Anti-Corruption Act carries a maximum sentence of 14 years on conviction.

Mubarak Shafik was convicted for carrying a bag containing $500, 000 (About sh1.8b) from Serwamba to Kalungi and in turn he was also awarded sh15m, which according to the judge conspired to commit the offence.

Isaac Serwamba was convicted for failure to tell the truth over the origin of sh255m that was recovered from him, which belonged to his brother David Serwamba, which according to the judge meant that he knew that the money was fraudulently obtained.

However, the Judge acquitted their co-accused Moses Kavuma, stating that he did not appear on the surveillance camera footage and that he was a truthful in his testimony, which clearly indicated to court that he was just misled by Serwamba and his associates.

Court documents indicates that the first fraudulent transaction of $700,000 was on March 28, 2015 at about 1:00pm local time, the second transaction of $500,000 was carried out on March 29, 2015, while the third transaction of $250 was also done on Mach 29, at 5:00pm.

Prosecution says that between March 28 and May 19, 2015, while in Kampala district the accused converted, transferred, transported and concealed sh4.6b with the intention of disguising its illicit origin, yet it was stolen from Equity Bank.

During mitigation, principal state attorney Maxi Erizooba asked court to give a tough penalty to the convict, saying the bank lost confidence from its clients because of their acts.

"Since the incident, bank insurers considered Equity bank as one of the risk client bank and its premium was increased. The bank profits which had risen to from sh4b to 14b but due to their activities it fell down again," Erizooba said.

He submitted that due to the acts of the convicts, Equity bank international correspondent banks like standard chartered threatened to withdraw dealings with it.

He also asked court to order for confiscation of their properties in order to recover the money.

Erizooba noted that the offences are rampant in the country and prayed for a deterrent sentence for the convicts.

On money laundering, Erizooba asked court to adopt procedures to sentence the convicts since sections 33 and 39 of the Anti-money laundering Act 2013 has not been passed.

However, defense lawyer MacDosman Kabega clashed with the judge and had a bitter exchange in Court.

This was after the judge rejected Kabega's plea for an adjournment of the case to enable him prepare for mitigation.

Another defense lawyer Erison Karuhanga asked court to consider the years, age and participation of the convicts in the offence while sentencing them.

The judge adjourned the case to today at 10:00am for sentencing.