Stanbic has finally broken its silence on a case under investigation where seven of its executives are accused of conniving and cheaply selling to themselves a mortgaged property.
In a 28th September press statement by management, the bank acknowledges a criminal complaint against some of its employees. “A criminal complaint against some of our employees arising from a property foreclosure process following a consent judgement against one of our clients has been brought to our attention,” the statement reads.
Last week, the bank came into the spot light after one of their clients, Macdowel Limited, asked police to investigate circumstances under which seven of its senior executives, sold to themselves a mortgaged property in question.
Beatrice Odongo, a director of Macdowel, in a 23rd September 2020 letter to the Special Investigations Division of the Criminal Investigations Directorate, asked police to investigate circumstances under which their property was illegally sold, yet the loan has been repaid.
The accused are Kenneth Kitungulu, Executive and Head, Global Markets; Lawrence Kaweesa, Global Business Manager; Allan Muhinda – Interest Rates Dealer; Daisy Nitwe-Corporate – Treasury Sales Dealer and Emmanuel Rukeeba, Head Products and Analytics. Others are: Maureen Kembabazi Katwebaze who works with Stanbic IBTC Bank, Nigeria, and Thaib Lubega, formerly Treasury Manager Stanbic Bank Uganda. Mr Lubega is now an account Treasury Manager at Uganda Development Bank
The seven are shareholders of Myriad Investment Club Ltd, which was able to register, secure a bank loan and buy off Plots 1,3,4,5 and 6 Works Close, Luzira on the 25th of March 2020 for UGX1 billion in a period of just two months
In the press statement, the bank adds that the case is now before court and cannot be discussed publicly.
“Stanbic acknowledges that the matter is subject to further court proceedings. Since the matter is before a court of law, the bank is unable to publicly discuss the merits of its case at this time.”
“As a responsible corporate citizen, Stanbic Uganda is committed to due process. Accordingly, Stanbic Uganda will carefully consider if the allegation of inappropriate involvement of its employees in the foreclosure process has any merit. In addition, Stanbic Uganda will fully co-operate with the authorities to bring this matter to a close.”
What the law says:
Under S.39 (2) and (3) of The Mortgage Act, the sale of mortgaged property by a bank to its employees is a crime punishable by imprisonment of not less than 24 months.