In a recent development, two individuals, namely Godfrey Mukwaya and Robert Mugumya, have been apprehended and detained on suspicion of involvement in fraudulent activities related to significant financial losses at Equity Bank, attributed to unsecured loans amounting to billions of shillings.
The arrests were conducted by police detectives on Thursday evening, who apprehended the former Airtel Uganda employees and detained them at Kampala Central Police Station (CPS).
According to Kampala Metropolitan Police spokesperson Patrick Onyango, the duo faces charges related to causing financial loss to the bank. While confirming the arrests, Onyango emphasized that investigations are ongoing, refraining from divulging further details to avoid compromising the process.
Reports from police detectives indicate that Mukwaya, formerly a sales manager at Airtel Uganda, allegedly orchestrated the defrauding of Equity Bank, surpassing Shs10 billion through the utilization of various individuals to open bank accounts.
On the other hand, Mugumya is purportedly linked to 179 fictitious companies allegedly established to defraud Equity Bank, resulting in losses exceeding Shs35 billion. Reports suggest that these companies were utilized to obtain loans through different individuals.
Notably, Mugumya, identified as the proprietor of Stab group of companies, encompassing mobile money outlets, mobile banking, hotels, and a hospital, has been implicated in the fraudulent activities.
The arrests of Mukwaya and Mugumya mark the seventh instance of individuals detained over fraudulent schemes associated with acquiring unsecured loans by ineligible parties.
Previously, on March 20, 2024, five individuals, including Equity Bank employees, were remanded over accusations of money laundering regarding the disbursement of Shs62 billion in unsecured loans to unqualified individuals.
The group facing charges includes head of Agency Banking Julius Musiime, relationship manager Erina Nabisubi, banker Fred Semwogerere, relationship officer Tumuhimbise Crescent Tibarwesereka, and distribution and marketing consultant Wycliff Asiimwe.
Allegations against them include obtaining credit by false pretense, money laundering, and conspiracy to defraud, among others.
The state contends that between 2021 and 2024, the accused individuals engaged in various fraudulent activities, including falsely representing loan applications and concealing true ownership of funds obtained through illegal means.
The ongoing investigation underscores the severity of financial fraud cases and the concerted efforts to bring perpetrators to justice.
