Equity Bank Uganda’s Ex-ED Arrested in Fraud Probe – The Black Examiner

Summary:

• Former Executive Director for Commercial Banking at Equity Bank Uganda, Kenneth Onyango, has been arrested by Ugandan authorities in connection with suspected fraud involving stock loans and agent float financing.

Equity Bank Uganda’s former Executive Director for Commercial Banking, Kenneth Onyango, has been apprehended by Ugandan authorities in connection to an ongoing probe into suspected stock loans and agent float financing fraud, sources confirmed to Examiner.

According to reports obtained by Examiner late Thursday, Onyango was detained on directives from the Directorate of Public Prosecutions (DPP), with investigations currently underway regarding his alleged involvement in the fraud case.

“While in police custody, Onyango’s fate awaits guidance from the DPP regarding subsequent actions,” a source told Examiner.

Images circulating on social media platforms Thursday evening depicted Onyango in handcuffs, following his reported resignation from the bank the previous month. Equity Bank purportedly accepted his resignation “immediately,” contingent upon the investigation’s outcomes, which were already in progress at the time.

Kampala Metropolitan Police reportedly carried out the arrest, with spokesperson Patrick Onyango declining to comment on the matter. Formal details regarding the arrest are expected to be released by the police on Friday.

Equity Bank Uganda has refrained from providing comments on the arrest, citing the ongoing state law enforcement investigations and the potential risk of compromising inquiries.

In a statement dated March 7, 2024, Equity Bank addressed concerns over potential fraud in its stock loan and agent financing products, indicating cooperation with relevant authorities in the investigations.

The statement emphasized the bank’s commitment to accountability and transparency, pledging to address any misconduct in accordance with organizational policies, procedures, and ethical standards.

Recent developments in the case saw five former Equity Bank employees charged on March 20 with offenses including obtaining credit by false pretense and money laundering. They were remanded to prison pending further legal proceedings.

Subsequent police revelations disclosed the apprehension of two additional suspects, allegedly including Onyango, and three agent banking operators, amidst findings suggesting collusion between bank staff and certain agent banking operators.

In response to the situation, the Bank of Uganda has reportedly ordered a forensic audit of Equity Bank, reassuring depositors of the safety of their funds.

Onyango’s tenure at Equity Bank encompassed various roles, culminating in his oversight of commercial banking operations before his arrest in connection with the ongoing fraud investigation.

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