Equity Bank is at the center of a massive scandal involving its top executives who are accused of orchestrating fraudulent loan schemes and subsequent cover-ups.
Key figures in the scandal include former Managing Director Samuel Kirubi, current Managing Director Anthony Kituuka, and several senior officials.
In one case whose details this website has accessed, former MD Samuel Kirubi acquired a multi-billion loan through false pretenses, in collaboration with Ronald Luwangula’s company, Luwaluwa Investments Ltd.
The loan, totaling UGX 29,331,834,326 (USD 6 million), was obtained through fraudulent means and written off without repayment. The loan details were concealed for an extended period, accessible only to Head of Finance Kezia Dorothy Asiimwe, a close associate of Kirubi.
The current management, including MD Anthony Kituuka, Head of Risk Moses Nsiima, Head of Compliance Sarah Nakazzi, and Head of Finance Kezia Dorothy Asiimwe, are accused of continuing the cover-up.
The situation is further complicated by the involvement of JALD, a debt collection company believed to be co-owned by Kirubi and other executives.
JALD, led by Ronald Luwangula, was given preferential treatment and awarded the role of lead debt collector for Equity Bank. Luwangula’s employee, Carol Mwanje, was appointed as head of Equity Collections, ensuring JALD received all lucrative cases and covered up sensitive information.
According to information from a source privy to this scam, Kirubi secured another loan in 2021 in the name of Pius Bajurizi Kwesiga, trading under Nile Fresh Produce International Limited.
The loan, totaling UGX 2,609,643,812, was never repaid and was subsequently written off. Pius was provided with a bank vehicle, a Nissan Patrol, to support Kirubi’s businesses in Northern Uganda, which has since disappeared from Equity Bank’s fleet.
Despite being aware of his fraudulent behavior, Equity Bank employed Ronald Luwangula to recover debts on their behalf, raising serious questions about the bank’s integrity and governance.
When Kirubi left Uganda, he influenced the appointment of Kezia Dorothy Asiimwe as the new Executive Director, a move aimed at ensuring the continuity of his fraudulent activities.
Although the Bank of Uganda rejected her appointment, Kezia continued to play a significant role in covering up Kirubi’s misdeeds.
The scandal escalated in 2023 when Equity Bank faced a major digital fraud incident, resulting in significant financial losses.
The bank’s leadership, including Kituuka and other senior officials, authorized manual customer transfers from operative accounts to suppliers, exposing the bank to further risks.
External auditors later uncovered these losses, leading to increased scrutiny from the bank’s headquarters in Nairobi.
In response, the executive committee (EXCO) of Equity Bank, led by Kituuka, colluded with JALD and the Uganda Police to frame and arrest staff members and agents, falsely accusing them of involvement in the fraud.
Among those arrested and still languishing in Luzira prison are Erina Nabisubi, Fred Kato, Julius Musiime, Crescent Tumuhimbise, and Fred Semwogerere.
A Kenyan-led investigation team ensured that Kenyan executives involved in approving the fraudulent loans, including former Head of Credit Jimmy Mwangangi, Hillary Toroitich, and Joseph Munyua, were protected from prosecution.
These executives were either reassigned or returned to Kenya, avoiding accountability for their roles in the scandal.
Meanwhile, in a separate case, Equity Bank and Stanbic Bank have been put on notice of an intention to sue for offering help to a one Stephen Bairukanga to defraud a one Clifford Potter who was coned in a gold deal gone bad.
