Equity Bank Uganda Ltd is currently investigating possible fraudulent activities involving its stock loan and agent float financing, which collectively represent approximately Shs65 billion out of the bank’s Shs1.9 trillion loan book. This accounts for nearly 2 percent of the bank’s total assets.
According to a statement addressed to its customers and shareholders, the bank has identified individuals, including some of its staff and customers, who are currently assisting with investigations by relevant law enforcement authorities.
Despite the ongoing investigation, the bank assures customers that its operations continue seamlessly. Customers are still able to access loans across all branches countrywide and banking channels.
The board of directors and management of Equity Bank Uganda remain committed to resolving the matter, emphasizing their focus on transforming lives, providing dignity, and expanding opportunities for wealth creation.
Dr. Fred Muhumuza, a sector expert and bank board member, reassures depositors that their savings are not affected by the investigation. He explains that any potential losses incurred would impact the bank’s profit rather than depositors’ savings.
Dr. Adam Mugume, the director of research and policy at Bank of Uganda, expressed unawareness of the possible fraud but noted that the bank’s audited accounts as of December reflected a healthy financial position.
Equity Bank Uganda, a subsidiary of Equity Group Holdings Plc, is a prominent bank in Uganda with an asset base of Shs3.5 trillion as of September 30, 2023. The bank has an extensive network of 50 branches, over 9,000 Qui Duka agents, and 58 ATMs, serving over 2 million customers across the country.
