One of Uganda’s leading commercial banks ,Stanbic bank risks having its image and reputation dented forever after senior managers allegedly sold to themselves -on the cheap -a prime property that was mortgaged by a client.
Ms. Beatrice Odongo a director of McDowell on September 23rd filed a written complaint to the Special investigation Division of the police ‘s Criminal investigation Directorate (CID) accusing the bank of illegal sale of their multi billion property located in Luzira.
In their complaint also copied to the governor and other senior managers at Bank Of Uganda -the regulator of the banking sector, Ms. Odongo states in her complaint that their property was grabbed through an insider dealing scheme between the bank and its employees using a front called Myriad Investment Club a company which was incorporated by the said corrupt bank employees early this year.
The allegedly officials behind this bad deal are , Kenneth Kitungulu, Lawrence Kaweesa, Allan muhinda, Daisy Nitwe, Emmanuel Rukeeba , Maureen Kembabazi Katwebaze and Thaib Lubega all senior managers at the bank.
“Stanbic Bank Conspired with its employees to grab our properties at a low price of Shs.1bn. Stanbic even gave them opportunity and time to obtain credit from DFCU to finance the purchase. We are reliably informed this practice (inside trading) has been ongoing for a long time within the banking industry,” Odongo said in her complaint.
There have been many cases in courts of law were banks are accused of unfairly and illegally foreclosing distressed mortgages with bank officials conniving with third parties to sell off people’s properties at ridiculously low prices to benefit themselves .
This particular case involving Stanbic bank has caused public anger with many people turning to social media to condemn the alleged unethical behaviour of the bank officials involved.
Don Wanyama one of the social media influencers had this to say , “ Banks are modern-day Shylocks! A company borrows money from a bank, mortgages property, ultimately clears the loan only to learn that senior bank employees had quickly registered their own company, rushed to borrow money from another bank and bought off (cheaply) their client’s property held as collateral. Ugly insider dealing. The matter might be before court but its understandable why the bank won’t comment.”
Efforts by this publication to get a comment from the Stanbic top honchos were futile as they declined to comment on the matter which has also been filed in the commercial court for adjudication as the criminal side is also being pursued by the complainants .
