Kampala, Uganda – Centenary Bank, one of Uganda’s leading financial institutions, has been rocked by two massive frauds in less than a year, totaling a staggering 5.51 billion shillings. However, what’s more alarming is the bank’s apparent willingness to scapegoat innocent IT staff while shielding top perpetrators.
On October 4, 2023, a 3.56 billion shilling fraud occurred at Mapeera Branch, where MTN mobile money transactions were posted from Kabale Branch using the Third-party Utilities System integrated with the Core-Banking System. Despite engaging external investigators, QA Consults Ltd, the probe failed to uncover the root cause. Two staff, Katusabe Godfrey a Junior IT who was just new in the department and Lubowa Edward, were unfairly dismissed without sufficient evidence.
Fast-forward to August 1, 2024, and another 1.95 billion shilling fraud hit the bank, again affecting Mapeera Branch and this time transactions posted from Kawempe-Bwaise Branch to different agent accounts. Again, innocent Junior IT staff – Senabulya Ronald, Umar Kasajja, and Kaweesi Martin – were implicated and dismissed. The investigation allegedly pinned the blame on a misconfigured network switch, a dubious claim considering the switch had functioned flawlessly for an entire year.
These incidents raise disturbing questions:
1. Why are innocent IT staff being sacrificed while top perpetrators remain untouched?
2. What role did the bank’s internal investigation department play in covering up these frauds?
3. Why did the bank fail to ensure the Core-Banking System’s forensic analysis and MTN’s critical data availability?
Sources close to the bank reveal a culture of fear, intimidation, and impunity among top management. Junior staff are coerced into silence, while those who dare speak out face reprisal.
A CALL TO ACTION
We urge the Bank of Uganda and Centenary Bank’s Board to intervene, launching a comprehensive investigation into:
1. Top Management’s involvement in these frauds.
2. Lapses in internal investigation processes.
3. Supervisory inefficiencies.
4. Banking systems’ internal control weaknesses.
Protecting customer deposits and innocent staff demands accountability. We cannot allow a culture of corruption and scapegoating to thrive in Uganda’s banking sector.
JUSTICE FOR THE VICTIMS
Katusabe Godfrey, Lubowa Edward, Senabulya Ronald, Umar Kasajja, and Kaweesi Martin deserve justice. Their livelihoods and reputations have been irreparably damaged.
THE PEOPLE DEMAND ANSWERS
Centenary Bank must come clean about these frauds. The Ugandan public deserves transparency and accountability.
Kind regards
