Kenyan Executive Dragged In A Multibillion Bank Heist

The recent announcement by Equity Bank acknowledging the potential fraud on their stock loan and agent financing products sent shockwaves through the industry and the public alike. “We hold ourselves to the highest standards of accountability and transparency, and the person (s) found to be responsible, whether through fraud or errors of commission or omission will be fully addressed by the policies, procedures, and ethical values of the organization and, where appropriate, the laws of the country,” read the statement.

“Police can never successfully implicate Onyango in the absence of his immediate bosses like former MD Samuel Kirubi and the current boss Anthony Kituuka, given the fact that the investigations are stretched as far back as 2018 when Kirubi was still in charge,” offered the source. Kirubi was relieved of his duties two years ago, and was replaced with Anthony Kituuka.

Mr. Kirubi at a past function.

We’ve learned that Mr. Kirubi was unceremoniously hounded from the office in November 20, 2022 alongside two other bank’s directors in suspected fraud. That the affected officials were attached to the larger credit section of the Bank, echoed a signal on what could have been the matter – hence the current situation.

Media reports in Uganda also allege that Samuel Kirubi and his management connived with a prominent businessman Sudhir Ruparelia and fraudulently sold him two prime properties belonging to another businessman Peter Kamya of Ssimbamannyo.

At the time of his departure, Kirubi and his subordinate `accomplices` had their plight driven via issues to do with bad loans and discrepancies surrounding the same. Intelligence had it that his sacking was partly sparked off by the Country`s regulatory body, Bank of Uganda(BOU) via an audit.

Kirubi had three loans he was supposed to write off as instructed by BOU, before he could handover. This stance, because the same loans had already gone bad under his watch and will.

Reports indicate that the three big loans as that of a prominent but controversial city businessman John Bosco Muwonge, which staggered around UGX47Bn. Muwonge had reportedly bought most of his siblings Godfrey Ssebalamu and Nabukeera`s properties using most of the money from Equity Bank and some from Bank of Africa. The other loans were that of Mogas, whose digits were also in Billions, as well as another of a Matugga-premised Company.

Upon his departure, Kirubi was swiftly replaced by Anthony Kituuka who had previously served as the Executive Director for Regional Subsidiaries from 2014 to 2016.

Hailed as a seasoned banker with the impressive track record above, Kituuka has found himself drowning in the mess left by his predecessor. Despite his credentials, he has struggled but failed to clean up the systemic sleaze that plagues Equity Bank, leaving the institution and its clientele in turmoil. But alas! Kirubi`s mess was too voluminous for him to clean. So much so, he can instead soil himself deeper into it.

Now, we understand that for police to ably charge Onyango, Kirubi and Kituuka must be lined ahead of him as key suspects. For starters, Onyango and five others namely; Julius Musiime, Erina Nabisubi, Fred Ssemwogerere, Wycliff Asiimwe and Crescent Tumuhimbise are accused of messing up with billions of dimes meant for stock loan product. This product is designed to provide vital credit support to businesses of all sizes.

The stock loan product, designed to provide vital credit support to businesses of all sizes, now stands at the center of the investigation. Equity Bank’s commitment to uncovering the truth and holding those responsible to account underscores the gravity of the situation. With both staff and clients implicated in the probe, the bank vows to uphold its standards of transparency and integrity.

The conundrum faced by police, Equity Bank and its proprietor James Mwangi, is that all loans in this category are vetted and approved by the Bank`s five-member Credit Committee. Therefore, the unfolding scandal implicates not only Onyango but also key figures within the bank’s Credit Committee, chaired by the Managing Director. With Kirubi and Kituuka at the helm during the period under investigation, the committee’s complicity in approving dubious loans cannot be overlooked.

Equity Bank CEO James Mwangi.

While Equity Bank seeks to navigate the fallout from this scandal, questions linger over the extent of its impact on both customers and stakeholders. Concerns over accountability and corporate governance loom large as the investigation unfolds, casting a shadow over the institution’s reputation.

Ugandan media have it that before the infamous investigation, Mwangi had successfully sought President Museveni`s attention, threatening to close business in Uganda over frustrations in investigations. Initially, all cases for and against Equity Bank Uganda would die prematurely. Some cases` fate would be influenced in Equity`s favor but leaving huge dents on the Bank`s reputation before public.