Stanbic bank Uganda top bosses have been accused of selling a client’s property to themselves during the COVID-19 lockdown.
In a letter to the Special Investigations Division Criminal Investigations Directorate dated 23rd September 2020, the Client, Macdowel Limited requests the directorate to investigate the corrupt sale of property/insider dealing by Stanbic bank.
“We mortgaged our properties at Plots 1,3,4,5 and 6 Works Close, Luzira to Stanbic Bank (U) Limited as security for loan advanced in 2017,” reads the letter signed by Macdowel Limited director, Beatrice Odongo.
The letter further reads that;
“We have since paid off the entire loan, but the bank has refused to release our titles.
“Initially, the bank’s lawyer (one Andrew Munanura) claimed it had sold the property by public auction advertised in the Monitor to take place on 6th December 2019 yet there was intact no auction.
“Our properties were actually grabbed through an insider dealing scheme between the bank and its employees using a front called Myriad Investment Club Limited.
The shareholders of Myriad and their job designations am:
1. Kenneth Kitungulu Executive and Head, Global Markets Stanbic Bank.
2. Lawrence Kaweesa – Global Business Manager Stanbic Bank.
3. Allan Muhinda Interest Rates Dealer Stanbic Bank.
4. Daisy Nitwe-Corporate – Treasury Sales Dealer Stanbic Bank
5. Emmanuel Rukeeba – Head Products and Analytics Stanbic Bank.
6. Maureen Kembabzi Katwebaze – works with Stanbic IBTC Bank, Nigeria.
7. Thaib Lubega, formerly Treasury Manager Stanbic Bank Uganda.
“Kenneth Kitungulu and Daisy Nitwe signed the sale agreement as the buyer’s directors.
“The sale agreement was drawn by the bank’s legal department, colleagues of the buyers’ directors/shareholders.
“It bears the stamp of Head PBB Credit, Stanbic and signature of Denis Lugoloobi, Senior Manager Credit Evaluation signing for the bank.
“Stanbic Bank conspired with its employees to grab our property at a low price of Shs1billion. Stanbic even gave them the time and opportunity to obtain credit from DFCU to finance the purchase.
“The sale agreement indicates a public auction and the sale was concluded on 23rd March 2020 during the COVID-19 lockdown.
“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.
“We are reliably informed this practice has been in going for a longtime within the banking industry.
“The purpose of this letter is to request your office to investigate this complaint and charge the culprits,”
It should be noted that a city businesswoman Ida May Kwesiga recently dragged Housing Finance Bank to court over fraudulent sale of her property at Kyadondo Road Nakasero in Kampala.