Another internal fraud case hits Nile Breweries, the Ugandan subsidiary of AB InBev as police investigates large-scale beer theft A fresh scandal brews at Nile Breweries as three employees are accused of stealing beer worth billions. With black market sales distorting prices and exposing weak internal controls, the case deepens concerns over systemic fraud at Uganda’s leading beverage manufacturer.

Just months after launching an investigation into massive marketing and sponsorship fraud involving senior staff, Nile Breweries Limited (NBL), a subsidiary of Anheuser-Busch InBev (AB InBev), is now grappling with yet another internal fraud scandal—this time involving large-scale theft of beer directly from its factory.

According to sources familiar with the investigation, three NBL employees—Muluka Denes, Wandera Gibbons, and Okello Anthony Ochepa—were arrested and charged with stealing four pallets of beer valued at approximately UGX17 million. However, further investigations suggest this was not an isolated incident.

“It had been happening for a while. The direct loss is well over UGX1 billion,” a source close to the matter told CEO East Africa Magazine. “And the indirect loss, when you factor in black-market sales and price undercutting, runs into several more billions.”

Criminal Case Registered, Suspects in Court

The incident was reported to the Njeru Police under CRB 742/2024, and the three suspects appeared before the Njeru Magistrate’s Court on 12th November 2024, where they were remanded to Bungugu Prison. They were subsequently granted bail on 20th November 2024, and the case remains ongoing.

“This isn’t just about stolen stock,” said another official familiar with internal audits at the brewery. “It’s about compromised systems, a breakdown in operational controls, and a deeper network of internal collaborators yet to be unearthed.”

Ongoing Internal Audit and Governance Concerns

NBL has declined to comment on the specifics of the case, citing ongoing investigations. However, this latest development further shines a spotlight on internal control failures at one of Uganda’s largest beverage manufacturers.

It follows a separate investigation involving fraudulent marketing activations and bogus sponsorship deals, which implicated senior sales and marketing staff, as well as third-party partners. In that case, key executives such as Darwin Majok and Amou Majok were forced out amid allegations of nepotism, budget misappropriation, and a governance structure that allowed siblings to control multimillion-shilling marketing budgets with little oversight.

“This new incident shows that NBL’s internal control systems are not just vulnerable in high-level executive functions, but also at the operational level where products can literally walk out the factory gates,” a governance expert commented.

Market Distortion and Financial Impact

The stolen beer was reportedly sold on the black market at prices significantly below market value, creating what one source described as “massive market distortions.”

“Not only did the company lose stock worth billions over time, but the black-market supply also hurt the brand’s pricing power and damaged relationships with legitimate distributors,” said a source familiar with the commercial impact.

The broader financial impact remains under assessment, but sources within the industry estimate that both direct and indirect losses could reach several billions of shillings once distortions in revenue, brand value, and customer loyalty are accounted for.