Two Arrested Over Equity Bank Fraud

Several individuals have recently been apprehended in connection with alleged fraudulent activities resulting in substantial financial losses to various financial institutions. Law enforcement officers took into custody two former employees of Airtel Uganda, Godfrey Mukwaya and Robert Mugumya, and they are currently detained at Kampala Central Police Station. 

These individuals face charges related to causing financial harm to a bank. Kampala Metropolitan Police spokesperson Patrick Onyango confirmed the arrests but refrained from divulging further details to safeguard ongoing investigations.

Mukwaya, formerly a sales manager at Airtel Uganda, allegedly orchestrated the opening of bank accounts through third parties to facilitate the fraudulent acquisition of over Shs10 billion from the bank. Similarly, Mugumya is purportedly associated with 179 fictitious companies utilized to defraud Equity bank of more than Shs35 billion. 

Additional information suggests that Mugumya is affiliated with the Stab group of companies, comprising various enterprises such as mobile money outlets, hotels, and a hospital.

These arrests contribute to a total of seven individuals now detained in connection with fraudulent schemes involving the acquisition of unsecured loans by ineligible applicants. Just last month, five individuals, including Equity Bank employees, were remanded for their alleged involvement in money laundering activities related to the disbursement of Shs62 billion in unsecured loans. 

Among those remanded were Julius Musiime, Erina Nabisubi, Fred Semwogerere, Tumuhimbise Crescent Tibarwesereka, and Wycliff Asiimwe. Prosecutors claim that Nabisubi, in her capacity as a relationship manager, falsely obtained loans totaling Shs6.55 billion and Shs300 million from Equity Bank by misrepresenting loan applications. Additionally, Musiime is accused of concealing the true ownership of Shs18 million, received as gratification, from Equity Bank.

The charges allege that between 2021 and 2024, the accused conspired to defraud Equity Bank of Shs62 billion by fraudulently facilitating the disbursement of unsecured loans to unqualified individuals across Kampala and Wakiso districts.

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