The Prime Minister of Uganda, Robinah Nabbanja, has directed the Bank of Uganda (BoU) to initiate an investigation into the increasing number of complaints from bank customers concerning the operation of syndicates within the banking sector.
Numerous reports have surfaced recently of money being withdrawn from bank accounts without authorization, raising concerns about the safety of customers’ funds.
Addressing the Parliament, Prime Minister Nabbanja requested the Central Bank to thoroughly investigate these allegations with the goal of preventing more customers from falling victim to mysterious financial losses.
She noted the importance of safeguarding customers’ interests and ensuring the integrity of the banking system.
“I am going to inform the Bank of Uganda so they can investigate these allegations. I believe the Ministry of Finance will present a report to Parliament. I also intend to convene a meeting to address these concerns. We have been informed that even under the Presidential Digital Transformation (PDM) initiative, some of our citizens were defrauded,” stated Prime Minister Nabbanja.
The call for this investigation comes as customers and the public have been questioning the apparent silence of the Bank of Uganda regarding the surge in fraudulent activities within banks.
Recent cases, such as that of Farook Ssekandi, who reported the unauthorized withdrawal of UGX 10 million from his Equity Bank account, have caused alarm among customers.
Ssekandi made an emotional plea for assistance, accusing the bank of failing to address his predicament.
In response, Equity Bank issued a statement denying any involvement in or support for fraudulent activities, explaining that the customer’s money was withdrawn by unknown individuals after losing his phone.
The bank encouraged customers who lose their phones to report the incident promptly through the bank’s customer helpline.
In a separate incident, a Centenary Bank customer reported the loss of UGX 100 million from her savings account, alleging that unknown individuals had withdrawn the funds.
Fortunately, Centenary Bank conducted an investigation, which revealed that one of its staff members had colluded with a fraudster to facilitate the unauthorized transactions.
The bank subsequently refunded the customer’s money and took action against the involved staff member and the fraudster, referring the matter to the police for further handling.
