Three individuals, including a former Equity Bank employee and two former Airtel Uganda executives, turned businessmen, have been remanded in connection with an alleged fraud involving the loss of billions of shillings in unsecured loans from Equity Bank.
Godfrey Mukwaya and Robert Mugumya, both former employees of Airtel Uganda, along with Fred Kato, a former head of Small and Medium Enterprises at Equity Bank, were brought before the Magistrates Court of the Anticorruption Division. They face accusations of conspiracy to defraud but were not allowed to plead to the charges.
The allegations suggest that Mukwaya, previously a sales manager at Airtel Uganda, orchestrated the opening of bank accounts through different individuals, resulting in the defrauding of Equity Bank of over Shs10 billion. Mugumya, on the other hand, is linked to 179 fictitious companies allegedly created to defraud Equity Bank of more than Shs35 billion.
Presiding Magistrate Abert Asiimwe declined to allow the accused persons to plead to the charges, citing their involvement in a case file related to money laundering, which falls under the jurisdiction of the High Court.
These charges bring the total number of suspects in connection with the alleged unsecured loans from Equity Bank to eight, amounting to over Shs62 billion. In a previous case on March 20, 2024, five individuals, including employees of Equity Bank, were charged with offenses including obtaining credit by false pretense, money laundering, and conspiracy to defraud.
The prosecution alleges that between 2021 and 2024, Nabisubi, employed as a relationship manager, falsely incurred debts amounting to billions of shillings from Equity Bank by misrepresenting loan applications. Similarly, Musiime, the head of Agency Banking at Equity Bank, is accused of concealing the true ownership of funds received as gratification, among other charges.
The indictment outlines a conspiracy among the accused to defraud Equity Bank of Shs62 billion by fraudulently disbursing unsecured loans to unqualified individuals between 2021 and 2024.
