6 Stanchart Bosses Face Arrest For Shs300m Fraud


CID officials have told this news-breaking website that six managers at the bank are facing arrest for criminal conspiracies, more about criminal negligence and the alleged swindle of Shs244million.

The development at one of the most respected banks in the country underlines the growing insecurity of customers’ deposits and fast-spreading fraud tendencies in the Banking sector.

Header advertisement

A report prepared by CID investigators, buy more about which this investigative website has seen, viagra sale indicates on May 21 2010 Bank officials reportedly conspired to cause the bank a loss of shs244, 386,206 which was obtained from the bad debt charge account, commonly known as the profit and loss account.

The bad debt charge account was being managed by Credit Manager Derrick Musazi.

Police say Musazi neglected his role in ensuring regular reconciliation and proper authorisation of monies moving in and out of the bank.

According to the bank manual entries authorization grid marked ‘A’, which this website has accessed, the signatories of batch control slip No.CR-002 of 21/05/2010 for Shs244,386,206 namely Amos Okech and Dorothy Bagenda did not have the right to authorize this transaction.

“Amos Okech had an authorization limit of USD300 which by then could translate to shs600,000,”the bank report, which will be tendered by CID as evidence during prosecution, shows.

As if this is not scaring enough, Head of Posting Jacob Kalinda and his staff should not have posted the transaction because it did not have sufficient authorization.

”Indeed the officers who signed on the batch were not final authorities since their authorization limits were far less than this batch mounts (Shs244,86,206). The reconciliation statement on the bad debt account of May 2010 which was prepared by Rose Tamale and reviewed by Dorothy Bagenda, Olwit Dorothy, Aidah Mugisha and Betty Sempebwa indicated that that there was a Marcis Bug Problem.

”This therefore appeared to have been a deliberate fraud by the officers since they did not seek a Marcis Bug specialist,” an up-to-date source at CID confided in this website.

According to an email dated May 7 2010 from Nina Tindyebwa to Patrick Musoke, the new provisions had been made relating to 2009 impairments but Amos Okech failed to put bank records/balances right.

”Finance control Unit(FCU)headed by Turyamuhabwa Nina and Betty Sempebwa failed to uncover failures/gaps in the reconciliation process,” the CID report notes.

According to information from the bank, the earlier suspected fraudulent transactions in the month of April 2010 was reportedly masterminded by Nicholas Kyakuwa and authorized by Rebecca Kaleebo on behalf of Albert Obongongyinge the Executive Director/Head of finance on batch control slip No.CR-295.

The conspiracy

In August 2010 after a three-months internal investigation, the Bank realised that account managers negligently omitted to carry out their duties.

The reconcilers prepared and passed false reconciliations for the two months of May and June 2010.

As regards earlier fraudulent transactions, Nicholas Kyakuwa and his cohorts allegedly swindled Shs105,179,260 which they claimed to have paid to property concept. The head posting, financial control unit and authorizers were discovered to have all conspired to swindle shs244million. The matter was taken to police but maintained under ultra-secrecy.

According to information availed by police, Musoke and Bagenda will be criminally held responsible for causing financial loss to the bank.

Account managers Derrick Musazi and Obongongyinge, the head of posting Kalinda Jacob and his staff (Brenda Kigozi, Vitas Muhabwe etc),the reconcilers of the affected accounts Rose Tamale, Bagenda Dorothy, Olwit Dorothy, Aidah Mugisha and Betty Sempebwa are also in trouble.

The preparer one Nicholas Kyakuwa and the authorizer Rebecca Kaleebo will be held responsible for criminal conspiracies. The financial control unit(FCU) staff Nina Turyamuhabwa and Betty Sempebwa will be held liable on similar charges.

“The criminal charges have already been laid at police and the case file has been recommended to Grace Akello who will avail it to the DPP for perusal,” an inside source revealed.


“We highly suspect these officials at different levels connived in furtherance of the commission of the frauds, fraudulently used their action capacities to enable the fraudulent financial transactions,” a police source said.


Header advertisement
To Top