Shocking  Secrets About Stanbic Bank Property Grabbing Scandal Emerge

Shocking  Secrets About Stanbic Bank Property Grabbing Scandal Emerge

By Mable Nakibuuka

Fresh and shocking secrets have emerged about the Stanbic Bank fraud scandal, in which several bank officials are accused of grabbing clients’ property and illegally mortgaging the same to dfcu bank, even after the clients had repaid a loan they had acquired from Stanbic.

ExposedUganda.com revealed how a clique of Stanbic bank executives led by Kenneth Kitungulu, had gotten involved in inside trading by grabbing and selling property that belonged to Macdowel (U) Ltd, a real estate company, despite the latter having repaid a loan of Sh1 Billion with interest which they had borrowed from  the bank.

In her complaint, Beatrice Odongo,  one of the directors of Macdowel (U) Ltd, a real estate company, alleges that Kitungulu and group grabbed land and property situate on Plots 1,3,4,5 and 6 Works Close, Luzira purporting that the company had failed to service the loan that had been extended to them by the bank in 2017 and that they had decided to attach the property that had been staked as collateral security.

Using a pseudo company called Myriad Investments Ltd, Kitungungu and his gang of fraudsters purportedly ‘bought’ the property that had been staked by Macdowel (U) Ltd at an undisclosed amount and without informing the clients (borrowers) went ahead to mortgage the same property to dfcu bank.

However, new details from our investigators indicate that the Stanbic bank officials carried out the above fraudulent dealings in 2019,  during which time they claim Myriad Investments to  have bought the collateral security, it has since emerged that the company was registered in January 2020.

A copy of the registration of Myriad Investments Ltd at URSB

Documents seen by this website from the Uganda Registration Services Bureau (URSB) pertaining to the registration of  Myriad Investments Ltd indicate that the company was registered on January 5th, 2020, with the following shareholders;

1-Kenneth Kitungulu: Executive and Head, Global Markets Stanbic Bank

2-Lawrence Kaweesa: Global Business Manager Stanbic Bank

3-Allan Muhinda: Interest Rates Dealer Stanbic Bank

4-Diasy Nitwe: Corporate Treasury Sales Dealer Stanbic Bank

5-Emmanuel Ruleeba-Head Products and Analytics Stanbic Bank

6-Maureen Kembabazi Katwebaze: Works with Stanbic Bank Nigeria

7-Thaib Lubega, formerly Treasury Manager Stanbic Bank Uganda and the witness was Ivan Gitta, an advocate.

Stanbic Bank officials in the scam

However, what baffles one’s understanding is why the directors cum shareholders of Myriad Investments Ltd, who are all Stanbic bank officials, waited until January 2020 to register the company, well-knowing that it is illegal to operate a company that is not registered and that it is an abuse of banking policy for bankers to sell to themselves property that has been submitted as collateral security.

It is for the reasons above and many others proving that Stanbic bank officials connived, conspired and colluded to grab property that had been staked by their clients as collateral security that Odongo petitioned the Uganda Police to investigate the matter and invoke the wrath of justice upon the culprits involved in this fraudulent act.

A letter to written the police Special Investigations Unit (SIU) by Odongo, one of the company directors, reads in part thus;

“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.

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 not auction. Our Properties were actually grabbed through an insider dealing scheme between the bank and its employees using a front called Myriad Investment Club Limited. The shareholders of Myriad and their job designations are;

1-Kenneth Kitungulu: Executive and Head, Global Markets Stanbic Bank

2-Lawrence Kaweesa: Global Business Manager Stanbic Bank

3-Allan Muhinda: Interest Rates Dealer Stanbic Bank

4-Diasy Nitwe: Corporate Treasury Sales Dealer Stanbic Bank

5-Emmanuel Ruleeba-Head Products and Analytics Stanbic Bank

6-Maureen Kembabazi Katwebaze: Works with Stanbic Bank Nigeria

7-Thaib Lubega, formerly Treasury Manager Stanbic Bank Uganda…”

The letter continues that; “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 the Head PBB Credit, Stanbic and signature of Denis Lugolobi, Senior Manager Credit Evaluation signing for the Bank.”

Odongo alleges that; “Stanbic Bank conspired with its employees to grab our property at a low price of Shs1 billion. Stanbic even gave them opportunity and time to obtain credit from DFCU to finance the purchase. The sale agreement indicates a public auction and sale was concluded on 29th March 2020 during the COVID lockdown.

Under S.39 (2) and (3) of The Mortgage Act, sale of mortgaged property by a bank to its employees is a crime punishable by imprisonment of not less than 24 months.

We are reliably informed that this practice has been going on for a long time within the banking industry.

The purpose of this letter is to request you to investigate this complaint and charge the culprits.

However, efforts by this website to secure a comment from Stanbic bank officials were futile because they couldn’t be reached through their office lines.

 

Leave a Reply

Your email address will not be published. Required fields are marked *