By Spy Uganda
Kampala: The latest shameful information we have from Stanbic Bank is that its top employees allegedly sold off their client’s properties that had been staked as security by the time she was obtaining Shs1 billion loan which she claims to have paid in time although it could not stop greedy bank mafias from quashing off her properties.
How Did They Sell To Themselves The Properties?
The Macdowel Uganda Ltd company [Client to Stanbic Bank] director Ms Beatrice Odongo reveals that they acquired a loan from Stanbic Bank in the year 2017 and mortgaged their properties located on plots 13, 4, 5 and 6 in Luzira.
According to the Macdowel’s letter seen by TheSpy Uganda addressed to the Special Investgations Unit (SIU) Kireka, to investigate into this matter, it is alleged that Stanbic Bank officials used a pseudo company known as Myriad Investments limited which they allegedly registered eyeing to steal this client’s properties a deal that they successfully achieved hence leaving the company’s reputation watered and dust binned by most of its clients we have interacted with.
Among the red noticed allegedly thieves who are bank officials that established and are shareholders of Myriad company are; Kenneth Kitungulu who is Executive and Head, Global Markets Stanbic Bank, Lawrence Kaweesa a Global Business Manager Stanbic Bank, Allan Muhinda: Interest Rates Dealer Stanbic Bank, Daisy Nitwe a Corporate Treasury Sales Dealer Stanbic Bank.
Others are Emmanuel Ruleeba who is the Head of Products and Analytics Stanbic Bank, Maureen Kembabazi Katwebaze who works with Stanbic Bank Nigeria and Thaib Lubega, formerly Treasury Manager Stanbic Bank Uganda.
It is said that Kenneth Kitungulu and Daisy Nitwe signed the sale agreement as to 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 the Head PBB Credit, Stanbic and signature of Denis Lugolobi, Senior Manager Credit Evaluation signing for the Bank, ” says Beatrice.
She adds that these mafias acted unprofessionally even after three years later though her company (Macdowel Uganda Ltd) had re-paid the entire loan although it looked to be a go forward for these bank officials to mercilessly fleece off her properties.
“We mortgaged our properties on Plots 1,3,4,5 and 6 Works Close, Luzira to Stanbic Bank (U) Limited as Security for a loan advancement in 2017. we have since paid off the entire loan, but the bank has refused to release our titles after selling off our properties to its employees,” says Beatrice.
She angrily added, “Our Properties were actually grabbed through an insider dealing scheme between the bank and its employees using a front called Myriad Investment Club Limited.”
However, on the other hand, the Bank’s lawyer Counsel Andrew Munanura, claimed they sold the properties by public auction after advertising in the Monitor publication on 6th December 2019, however, Beatrice says that there was no auction.
She says that this Bank conspired with its employees to grab their property at a low price of Shs1 billion and according to the sale agreement, a public auction and sale was concluded on 29th March 2020 during the COVID lockdown.
Stanbic Previous Scandals
In the year 2011, three directors of a ghost company that was under investigation by parliament over the local council bicycle scandal swindled 4.7 billion shillings from the Ministry of Local Government and disappearing before delivering the bicycles that were meant to be distributed to village local councils.
Robert Mwebaze, the former Head of the Procurement Unit in the ministry of local government told MPs on the Public Service and Local Government Committee that Singh was the main local contact for Amman Industrial Tools and Equipment Ltd, the company that reportedly fleeced Uganda of billions of shillings using a forged bill of lading.
At the end of the cross-examination, Mwebaze insisted that it was Stanbic Bank that was to blame for the loss occasioned to the government through the supply of the bicycles. He repeated the allegation against Stanbic that it had forged the bill of lading, the document that the ministry claims it used to get Amman paid by Bank of Uganda through Stanbic Bank account.
The dubious acts are not only cited in Stanbic Uganda only but also in the year 2016 Stanbic Bank Tanzania was fined 3bn/- to the Bank of Tanzania (BoT) for its role in the dubious transaction in which six million US dollars (about 12bn/-) was withdrawn in cash in a matter of days by a local firm, Enterprise Growth Market Advisors (EGMA), in 2013.
EGMA directors allegedly received kickbacks amounting to 6 million US dollars (about 12bn/-) for ‘facilitating’ a Eurobond of US $600 million dollars (about 1.2 trillion/-) from the parent company of Stanbic Bank Tanzania, the Standard Bank UK, now called ICBC Standard Bank.
Just like Stanbic Bank’s employees in Uganda are alleged to be on the forefront of fleecing client’s properties, In Tanzania also the arrangements for the bond were made by Bashir Awale, then Chief Executive of Stanbic Tanzania and Ms Shose Sinare, then the head of corporate and investment banking.
One may say these scandals are only being geared by Stanbic Bank Uganda and Tanzania only, but also in Zambia on December 16, 2018, the local newspaper “Zambia Watchdog” published;
“When we say Stanbic Bank is probably the most corrupt bank in Africa, we do not exaggerate. In Zambia, Stanbic is engaged in bribing judges to destroy local companies and government officials to win contracts. Stanbic does the same wherever it operates. In Tanzania, Stanbic has been found guilty of bribing Tanzanian government officials with over US$6 million.
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This Stanbic bribery scandal started in 2013 when the Tanzania government sought an external borrowing of $600 million through bonds. The $600m private placement of sovereign debt was for financing electricity, water and other infrastructure work in Tanzania, part of the government’s five-year development plan.
To beat other banks and be appointed lead bond executioners, Stanbic engaged in what it knows best; bribery and extortion. Stanbic bribed government officials using US$6 million.”
The above happened after the bank in the same year was battling with cases of bribing judges in a case of Savenda v Stanbic, which the High Court ordered Stanbic to compensate Savenda K192m for loss of contracts after Stanbic negligently and maliciously reported Savenda to the Credit Reference Bureau. But the Supreme Court trashed the High court Judgement and instead ordered Savenda to pay costs from the time the case started, generating public outcry and suspicion that the Supreme Court has been bribed.
In this case, Savenda obtained a US$540, 000 loan from Stanbic to buy a Printing Machine in 2007. According to records, Savenda was servicing the loan as scheduled, but the bank’s system could not capture these monthly repayments. Stanbic admitted the error and put it in writing that they would rectify the problem. But, the other department of the Bank reported Savenda to the Credit Reference Bureau (CRB) as a deliquescent borrower.
Savenda sued the bank.
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