The ongoing investigation into the alleged multi-billion shilling fraud at Equity Bank Uganda has widened, with three additional suspects arrested and remanded in connection with the loss of over Shs62 billion through unsecured loans.
Among those remanded is Fred Kato, a former head of Small and Medium Enterprises at Equity Bank, alongside Godfrey Mukwaya and Robert Mugumya, both former employees of Airtel Uganda who have since transitioned into private business.
The trio was arrested by police detectives, detained at Central Police Station (CPS), and later arraigned before the Anti-Corruption Court on charges of conspiracy to defraud.
At the Anti corruption court, they were not allowed to take plea, with Presiding Magistrate Albert Asiimwe explaining that their case is part of a wider file involving money laundering, a charge that falls under the jurisdiction of the High Court.
“While this court has powers to handle the case of conspiracy, this one is emanating from money laundering, i advise that you will plead to the charges in the High Court which has powers to entertain all the cases,” Magistrate Asiimwe ruled.
Investigations allege that Mr Mukwaya, formerly a sales manager at Airtel, used multiple individuals to open fraudulent bank accounts through which more than Shs10 billion was siphoned from Equity Bank.
Mr Mugumya, on the other hand, is reportedly linked to a web of 179 fictitious companies, allegedly created to fraudulently secure over Shs35 billion in loans.
Their appearance in court brings the total number of accused individuals in the case to eight, following the March 2024 charging of five other suspects, most of them current or former employees of Equity Bank.
Those earlier charged include:
Julius Musiime, head of agency banking at Equity Bank
Erina Nabisubi, relationship manager for telecom
Fred Semwogerere, banker
Cresent Tibarwesereka, relationship officer
Wycliff Asiimwe, distribution and marketing consultant for a microfinance institution
According to the prosecution, Ms Nabisubi fraudulently secured over Shs6.55 billion in loans between 2021 and 2024 by falsely presenting Gladys Najjemba as a qualified borrower. She is also accused of using Latiffa Nagawa in a similar scam to obtain another Shs300 million.
The state contends that Ms Nabisubi not only misrepresented borrower identities but also worked to obscure the true ownership of the funds, channeling the money through a specific account under Najjemba’s name—account number 1032100370335—while knowing the funds were proceeds of crime.
In a related charge, Mr Musiime is accused of concealing the ownership of Shs18 million received as a bribe from Stella Mutuuza. This was allegedly in exchange for facilitating a fraudulent Shs700 million loan, with the illicit reward deposited into Gilbert Rwaiheru Kiiza’s account—account number 1013101211316.
The magnitude and sophistication of the alleged fraud have sent shockwaves through Uganda’s banking and financial sectors, as investigators continue to unravel what appears to be a deep-rooted network of collusion, document forgery, and financial misrepresentation.
All the suspects are expected to face the High Court in the coming weeks as the State intensifies efforts to recover the stolen funds and prosecute those involved.