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Five officials of Post Bank Arua Branch were arrested and detained at Arua City Central Police Station on Thursday. The arrests came following allegations of stealing sh138.6 million from the bank. The officials, identified as Leonard Lakwey, Walter Feni, Resty Lunkuse, David Tenywa, and Brian Olara Okidi, all banking officers at the branch, were detained upon their arrival from Kampala, along with the investigating officer.
The arrests stem from a complaint filed by the bank’s Regional Head of Distributions Northern Region on February 5, 2024. The complaint alleged that some officials of Post Bank Arua Branch had stolen cash totaling sh138,685,450. A General Enquiry File (GEF) number 21/2024 was opened, and preliminary investigations revealed discrepancies during an end-of-year audit conducted by a Risk Team from the Post Bank head office in Kampala on December 30, 2023.
According to Josephine Angucia, the regional police spokesperson for West Nile, the missing funds came to light during the audit, prompting the bank to initiate disciplinary proceedings against the officials allegedly involved. Seven officials were summoned for a disciplinary session at the Post Bank head office in Kampala on February 28. However, only five attended, and they were subsequently arrested and transferred to Arua City Central Business Division for further investigations.
Meanwhile, the branch manager and the branch operations supervisor, who were also implicated in the alleged theft, evaded arrest by skipping the disciplinary session. They are currently at large, with a preliminary charge of theft of money being preferred against them.
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This incident is not the first time Post Bank has faced such challenges. In 2019, seven former top managers of the bank were accused of fraud totaling about 4 billion Shillings, although they were later acquitted of the charges. The recent arrests add to the growing concerns surrounding the governance and management of the government-owned financial institution.
The developments come amid criticism of Post Bank’s handling of PDM cash disbursements to Ugandans through its App-Wendi. The allegations of theft further tarnish the reputation of the bank and raise questions about its internal controls and oversight mechanisms.
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