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Stanbic Bank Accused of Selling Client’s Property to Own Employees

Stanbic Bank Uganda is on the spot for allegedly exploiting fraudulent means to sell off a client’s properties   in Kampala to its own senior employees.

The bank was this week dragged to police by McDowel Ltd, whose property located in Luzira was allegedly  sold to the bank’s employees.

The company Director Beatrice Odong told police on Wednesday that they acquired a loan from Stanbic back in 2017 and mortgaged their properties located on Plots 13,4,5 and 6 Works Close, Luzira.

Three years down the road, Odong says her company complied and paid off the loan fully, only to learn later that their property has been sold off in March this year.

The property, she says was acquired by Stanbic’s senior staff who used a front company they formed named Myriad Investment Club.

“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 in fact no auction,” Odong said in a letter to the Police’s CID.

“Our properties were actually grabbed through an insider dealing scheme between the bank and its employees using a front Myriad Investment Club Limited.”

The said Myriad Investment Club according to papers seen by this website was formed in January this year.

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Two months later on March 25, the company successfully acquired McDowel’s properties.

The company’s shareholders as per its registration papers are; Kenneth Kitungulu who is the Executive and Head, Global Markets at Stanbic Bank; Lawrence Kaweesa – Global Business Manager Stanbic Bank; Allan Muhinda – Interest Rates Dealer Stanbic Bank; Daisy Nitwe-Corporate – Treasury Sales Dealer Stanbic Bank; Emmanuel Rukeeba – Head Products and Analytics Stanbic Bank; Maureen Kembabzi Katwebaze who works with Stanbic IBTC in Nigeria and one ‘Thaib Lubega, the 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,” Odongo told Police.

She also says the back employees acquired the properties at a low price of Shs. 1 billion.”

Our efforts to reach Stanbic’s Head of Communications Cathy Adengo were fruitless as she did not return our calls.

In her complain, Mrs Odongo wants Police to investigate the matter and arrest the people involved.

Under the Mortgage Act, the sale of mortgage property by a bank to its employees is punishable by not less than 2 years in prison.

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