Rédaction Africa Links 24 with Uganda Monitor
Published on 2024-03-11 13:54:12
Equity Bank Uganda Ltd is currently conducting an investigation into potential fraudulent activities involving its stock loan and agent float financing, as reported by the Monitor. Stock finance is a key aspect of the bank’s lending portfolio, which involves providing loans to customers interested in purchasing various stocks such as beverages, construction materials, airtime, fuel, and beauty products. Additionally, agent loan financing is a specialized type of loan designed for bank agents and mobile money agents.
The total value of the portfolio under investigation is around Shs65 billion, which constitutes a small percentage of Equity Bank of Uganda’s total assets. In a statement addressed to customers and shareholders, the bank acknowledged the possible fraud and stated that certain individuals, including both staff and customers, are cooperating with law enforcement authorities to aid in the investigation.
Despite the ongoing investigation, Equity Bank assured customers that its operations are continuing smoothly, with loans still being accessible across all branches and banking channels. The bank emphasized its commitment to addressing the issue and maintaining a focus on its core mission of transforming lives, promoting dignity, and enhancing opportunities for wealth creation.
Dr. Fred Muhumuza, a banking sector expert and board member, explained that any losses resulting from the suspected fraud would impact the bank’s profits rather than depositors’ savings. He emphasized that it is the responsibility of the bank to absorb any financial losses incurred due to internal lapses. Dr. Adam Mugume, the Director of Research and Policy at the Bank of Uganda, expressed skepticism about the reports of potential fraud, citing the bank’s healthy audited accounts and loan book as of December.
Equity Bank Uganda, a subsidiary of Equity Group Holdings Plc, is a prominent financial institution in the country with assets totaling 3.5 trillion as of September 30, 2023. The bank has been expanding its presence, currently operating 50 branches, over 9,000 Qui Duka agents, and 58 ATMs nationwide, serving a customer base of over 2 million individuals.
In conclusion, Equity Bank Uganda’s investigation into fraudulent activities underscores the importance of maintaining accountability and transparency in the banking sector. The bank’s commitment to addressing the issue and upholding ethical values is crucial for safeguarding its reputation and protecting the interests of its customers and stakeholders. As the investigation unfolds, stakeholders will be closely monitoring the developments to ensure a fair and just resolution to the matter.
Read the original article on Uganda Monitor
