PostBank Uganda Ltd is reported to have incurred a loss of shillings 292 million due to an alleged fraudulent commission agent, according to testimony presented in court.
Bernard Kinyera Ochaya, a fraud investigator from the State House Anti-Corruption Unit, informed the court that he discovered the loss of shillings 292 million at PostBank, disguised as payments to a commission agent. Ochaya, testifying on January 30, 2024, revealed that the Auditor General had determined that the money was paid for services that were never rendered.
This information was disclosed during a case at the Nakasero-based Anti-Corruption Court in Kampala, where former employees of PostBank Uganda, including managing director Stephen Mukhweli, executive director of credit business growth Alex Kayaayo, and head of business growth Fred Samuel Wasike, face charges related to causing financial loss, abuse of office, and conspiracy to defraud.
Ochaya, appearing as the 14th witness in the case, claimed that the money was allegedly paid as a commission under the Social Assistant Grant for Empowerment (SAGE) without undergoing a competitive bidding process.
Prosecution’s Case:
According to the prosecution, led by Stanley Baine, on June 15, 2016, Mukhweli, while serving as the managing director, irregularly approved the payment of shillings 292 million to Jude Muhereza. On June 14, 2016, Kayaayo, as the executive director of credit and business growth, is accused of irregularly authorizing the payment of the same amount to Muhereza as a commission under SAGE.
The prosecution contends that the recipients were not entitled to this payment. All accused parties have denied the charges.
The Social Assistant Grant for Empowerment (SAGE) initially targeted senior citizens aged 65 and above under the Expanding Social Protection Programme, aiming to facilitate access to basic services and initiate income-generating activities, piloted in 20 districts.
Legal Implications:
As per Section 11(1) of the Anti-Corruption Court Act, a person found guilty of the offence of abuse of office could face seven years’ imprisonment, a fine not exceeding shillings 1.3 million, or both. According to Section 20(1) of the same act, a person convicted of causing financial loss is liable to a fine not exceeding shillings 4.8 million, a term of imprisonment not exceeding 14 years, or both. The offence of conspiracy to defraud under Section 309 of the Penal Code carries five years’ imprisonment upon conviction.
