Equity Bank has initiated investigations into suspected fraud in its stock loan and agent float financing.
In a statement dated March 7, 2024, Equity Bank confirmed the potential fraud concerning their Stock Loan and Agent financing products and revealed that they have launched investigations into the matter.
“The portfolio currently under investigation is approximately Shs65 billion out of a loan book of Shs1.9 trillion and is equivalent to 1.8% of Equity Bank Uganda’s total assets,” the statement by Equity reads in part.
The bank has committed to holding itself to the highest standards of accountability and transparency.
“We hold ourselves to the highest standards of accountability and transparency, and the person/s found to be responsible, whether through fraud or errors of commission or omission, will be fully addressed by the policies, procedures, and ethical values of the organization and, where appropriate, the laws of the country,” the bank stated.
The bank further assured its customers of the safety and security of their deposits across its branches and service outlets nationwide.
“Despite this investigation, customers will continue to access loans across all our branches countrywide and banking channels uninterrupted. The Board of Directors and management are committed to resolving and concluding this matter, and we continue to focus on our purpose of transforming lives, giving dignity, and expanding opportunities for wealth creation,” said the bank.
Last month, Uganda Bankers’ Association (UBA) chairperson Sarah Arapta revealed that, in efforts to combat banking fraud, together with other stakeholders, they were working on a legal framework for the prevention, deterrence, and remediation of the vice within the sector.
She noted that if approved by the policymakers, the framework would see convicts of financial crimes face harsher punishments.