Judge Releases Equity Bank Boss in Shs62bn Customer Savings Fraud on Bail

A judge at Uganda’s Anti-Corruption Division of the High Court has granted bail to Erin Nabisubi, a former Relationship Manager for Telecom at Equity Bank Uganda. Nabisubi faces accusations of taking part in defrauding the bank’s customers of over Shs62bn in savings.

Among other charges, Nabisubi faces allegations of money laundering, and of facilitating fraudulent disbursements to people who were not meant to get the monies because they simply did not qualify for the funds in question.

Justice Lawrence Gidudu carried out a detailed review of Nabisubi’s case and decided to release her on bail. Justice Gidudu confirmed that the sureties Nabisubi presented were substantial. The sureties were Joshua Muwanguzi, Fred Mukoka Mugambe, and John Ronald Isabirye.

Muwanguzi, Mugambe and Isabirye executed a non-cash bond of Shs200m. In granting Nabisubi bail, Justice Gidudu rejected the state’s claim of ongoing investigations as grounds to deny Nabisubi bail.

On remand since March 2024, Nabisubi and six others had not been held for over 180 days, without being committed for trial, the judge noted, adding that the state had exceeded the legal limit for pre-trial detention.

As court released Nabisubi, the judge set some tough bail conditions. He ordered Nabisubi to deposit her Mailo land title on plot 759, block 170, Kijabijo with the temple of justice. Nabisubi will also report to court’s registrar ever month, with her first reporting scheduled for November 01, 2024.

GENESIS OF THIS EQUITY BANK UGANDA FRAUD

In April 2024, Police revealed that up to eight people had been charged to court with obtaining money by false pretences, money laundering, and conspiracy to defraud Equity Bank of about Shs65bn. Police listed the eight accused persons as Julius Musiime, Erina Nabisubi, Cresent Tumuhimbise, Fred Ssemwogerere, Wycliff Asiimwe, Robert Mugumya, Fred Kato and Ronald Mukwaya.

“The charges stem primarily from the fraudulent diversion and disbursement of funds from the bank, in form of unsecured loans to unqualified people. Some of these included relatives, with whom they created fictitious companies and fraudulently disbursed huge amounts of money, that would be picked directly by the staff or indirectly using co-conspirators, proxies or conduits,” explained police.

“The accused persons depict a brazen effort to siphon monies from the bank, to instead fund personal gains. The Forensic investigations are ongoing to determine the gravity of the fraud. Several suspects are being traced, including those who resigned, after the massive fraud was detected. The Former Managing Director, Onyango Kenneth, was interrogated and still remains a subject of investigation.”

Equity Bank has been on the spot over cases of fraud. Last year, a customer alleged that Shs47m had mysteriously disappeared from her account. In response, Equity Bank Uganda said that the aggrieved customer had been negligent. (Read Story Here and There).

It is not only Equity Bank Uganda that is facing bank fraud. Last year, it was revealed that fraudsters had gained unauthorized access to a company account in Stanbic Bank and managed to illegally withdraw about Shs6.6bn. (See Details Here).

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