Police arrest two individuals in relation to fraud at Equity Bank

Due to allegations of fraud involving the loss of billions of shillings in unsecured loans from Equity Bank, two men have been taken into custody.

Godfrey Mukwaya and Robert Mugumya, two former employees of Airtel Uganda, were taken into custody by police detectives on Thursday night and held at the Kampala Central Police Station (CPS).

Both of them are accused of defrauding the bank and causing financial losses.

Spokesman Patrick Onyango for the Kampala Metropolitan Police confirmed the arrest and stated that they are being held at CPS while the investigation is ongoing.

He continued by saying that the suspects were charged with financially harming the bank.

Police investigators discovered that Mukwaya, a former Airtel Uganda sales manager, opened bank accounts under false pretenses, allowing the bank to be defrauded of over Shs10 billion.

The detectives claim that Mugumya is associated with 179 fraudulent companies that were set up to defraud Equity Bank by using various individuals to obtain over Shs35 billion.

Based on information found on YouTube channels, Mugumya is the owner of the Stab group of businesses, which includes hotels, a hospital, mobile money stores, and mobile banking.

With the apprehension of Mugumya and Mukwaya, the total number of individuals detained for fraud related to obtaining unsecured loans by unfit individuals now stands at seven.

A group of five individuals, including employees of Equity Bank in Uganda, were placed under remanded last month (March 20, 2024) on suspicion of money laundering related to the distribution of Shs 62 billion in unsecured loans to unqualified borrowers.

The group faced charges of money laundering, conspiracy to defraud, and false pretenses to obtain credit when they appeared before the Anticorruption Magistrates Court.

Julius Musiime, head of Equity Bank’s Agency Banking, Erina Nabisubi, a relationship manager for telecom, Fred Semwogerere, a banker, Tumuhimbise Crescent Tibarwesereka, a relationship officer, and Wycliff Asiimwe, a distribution and marketing consultant with a microfinance facility, are among those on remand.