Equity Bank has launched investigations into suspected fraud ravaging the stock loan and agent float financing sections following a realization on the same.
“We regret to inform you that we have recently identified a possible fraud on our Stock Loan and Agent financing products. People of interest, including a few of our staff and customers, are currently assisting with investigations by the relevant law enforcement authorities,” Equity Bank said in a statement.
The Bank further noted that any persons found to have been part of the fraud intentionally or through errors of commission or omission, will be dealt with as per the institution’s policies, procedures and ethical values.
It should be noted that Equity Bank Uganda Limited currently has a network of 50 branches, over 9,000 Equi Duuka agents and 58 ATMs spread across the country and serving over 2 million customers.
“In our effort to empower our customers, businesses, and communities, we have continued to innovate products and services that bring convenience and support our customers to unlock their full potential,” the statement read in part.
It adds, “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 organisation and, where appropriate, the laws of the country.”
This, however, isn’t the first time Equity Bank is entangled in a fraud crisis.
Back in February 2023, numerous customers reported cases of their accounts being emptied through fraudulent withdrawals that they didn’t authorize. The bank, in a statement then, said they were in touch with the aggrieved clients and that the issue would be resolved.
This has left some clients wondering whether the bank will uphold their customer satisfaction values considering the back to back crises.
Speaking to Prime News, Alfred Maina, a Kenyan national living and working in Uganda says he prefers using Equity Bank because it’s also well established in Kenya so his transactions are more seamless.
“This incident, however, shakes things a little bit. After EFC closure just a month back, such shocks in the financial sector create doubt about the credibility of the banking institutions,” Maina said.
Equity Bank has nonetheless assured customers that they will continue to access loans across all 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,” the Bank said.
The bank has an asset base of UGX 3.5 Trillion as at 30th September 2023. Equity Bank Uganda is a subsidiary of Equity Group Holdings Pie, a financial services company listed at the Nairobi Securities Exchange, Uganda Securities Exchange, and Rwanda Stock Exchange.