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Fred Kato, Robert Mugumya and Godfrey Mukwaya are Equity bank employees denied bail at Nakawa division Anti-corruption court on Monday.
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Three of the seven employees of Equity Bank who were charged with conspiracy to defraud the bank of sh62b have been denied bail.
The Nakasero based – Anti Corruption Court Division of the High Court presided over by Justice Lawrence Gidudu declined to grant bail to Fred Kato, Robert Mugumya and Godfrey Mukwaya.
In a ruling that was delivered on Monday (May13, 2024) Gidudu said the sureties the accused presented to court were not substantial for court to free them on bail yet the offences for which they are charged are grave in nature.
“Kato, Mugumya and Mukwaya have not provided sufficient sureties. They should find suitable persons that meet the seriousness of this crime. They are remanded since their applications are unsuccessful for want of sufficient sureties,” Justice Gidudu said.
Four freed on bail
However, court freed four of the accused on bail after their sureties were found to be substantial and are able to meet the bail conditions.
Justice Gidudu released the head of agency banking Julius Musiime on a cash bail of sh50m. The bank’s relationship manager Erina Nabisubi, banker Fred Ssemwogerere, Crescent Tumuhimbise Tibarwesereka and distribution and marketing consultant Wycliff Asiimwe were each granted cash bail of sh30m.
“I have not been persuaded to deny the applicants bail just to allow investigations to continue without an end in sight. Persons should not be kept in prison without trial at the convenience of the state. There should be compelling reasons to restrict the release of an accused on bail,” Justice Gidudu said.
Prosecution’s case
The prosecution, led by chief state attorney Raymond Mugisa and state attorney Pamela Orogot from the Office of the Director of Public Prosecutions (ODPP), alleges that Musiime, Nabisubi, Ssemwogerere, Tibarwesereka, and Asiimwe conspired to defraud Equity Bank of sh62b between 2021 and 2024 in various places within Kampala city and Wakiso district.
They are accused of fraudulently causing the disbursement of unsecured loans to unqualified people.
Regarding the charge of obtaining credit by false pretence, where Nabisubi is facing the charge alone, it is alleged that between 2021 and 2024 at Equity Bank Church House branch in Kampala, while employed as a relationship manager, she allegedly incurred a debt of sh300m from Equity Bank by falsely claiming that the loans were applied for by Latiffa Nagawa and that she had fulfilled the bank's requirements for accessing loans.
Additionally, still on the charge of obtaining credit by false pretence, the prosecution alleges that between 2021 and 2024 at Church House, Nabisubi intentionally concealed the ownership of sh6.5b that she fraudulently obtained from Equity Bank, purporting that the money was applied for by Gladys Najjemba as a loan, whereas not.
It is further alleged that Nabisubi in 2021 and 2024, while employed as a relationship manager, concealed the ownership of sh6.5b, which she fraudulently obtained through account number 1032100370335 in Gladys Najjemba’s name claiming that the money was applied for by Najjemba as a loan.
Pertaining to the charge of money laundering against Musiime, it is alleged that between 2021 and 2024 at Equity Bank Church House, he concealed the ownership of sh18m, which he received as gratification from Stella Mutuuza for processing a loan of sh700m from the bank in the name of Gilbert Rwaheru Kizza, knowing that the money was proceeds of crime.
What the law says
Section 3 of the Anti-Money Laundering Act states that any person convicted of money laundering is liable to 15 years in jail or a fine not exceeding sh2b.
Section 309 of the Penal Code Act stipulates that a person who conspires with another to commit an offence of conspiracy to defraud is liable on conviction to five years in jail.
The offence of obtaining credit by false pretense under the Penal Code is a misdemeanor and the sentence is on the discretion of the court.
