The Managing Director of Post Bank, Uganda, Mr Stephen Mukweli was quizzed by detectives for reportedly mismanaging the institution’s funds, it has emerged.
Mukweli, along with other senior officials the institution, appeared at Kibuli Criminal Intelligence and Investigations Department (CIID) Headquarters in Kampala on Friday, for interrogation by the Police.
State House said Mukweli and his accomplices were in hot soup for “allegedly mismanaging the Bank’s funds.”
Mukweli, who appeared with his lawyer, Allan Tusiime, interfaced with Police Officers for over five hours.
A week ago, State House Anti-Corruption Unit, headed by Lt. Col. Edith Nakalema together with the Criminal Intelligence and Investigations Directorate of the Uganda Police Force and the Auditor General’s Office, carried out a special investigation on Post Bank Uganda after receiving credible information from a whistle blower that officials in the Bank had mismanaged the institution’s funds.
ChimpReports broke the news of Mukweli’s grilling on Saturday morning.
Investigators told us that CID received “overwhelming evidence of theft” which they say could implicate Mukweli and his right-hand officials in courts of law.
The accused face charges of abuse of office.
CIID spokesperson Vincent Ssekate told ChimpReports on Saturday that “nine people from Post Bank” were being investigated for abuse of office and mismanagement of funds.
The departments which are being scrutinized are marketing, Finance, IT, Business and Growth among others.
“An audit report found some gaps in these departments,” said Ssekate.
He further said Post Bank officials being investigated “are on police bond. We questioned them and later extended their bond to April 17.”
Ssekate also confirmed that Mukweli is a subject of investigation.
BoU Speaks out
Bank of Uganda also issued a statement on Friday, saying “Following a petition to the Anti-Corruption Unit, State House, by a whistle blower, there is an ongoing investigation into some staff of PostBank Uganda Limited by the Office of the Auditor General and the Directorate of Criminal Investigation and Crime Intelligence (CIID).”
The Central Bank further said it was “aware of the issues under investigation and is working very closely with the aforementioned investigative teams and the Ministry of Finance, Planning and Economic Development to ensure that the services and operations of PostBank Uganda Limited are not interrupted.”
Cases of financial institutions being mismanaged by staff and owners are not rare in Uganda.
Recently, Crane Bank was taken over by Bank of Uganda and sold after it was found undercapitalized as a result of mismanagement, fraud and insider lending.
Possibly to avoid a run on the institution, BoU quickly assured PostBank customers and the general public that it is “strong, safe and sound and all its services will continue uninterrupted at all its branches.”
Nakalema praised “all anti-corruption agencies for their unwavering support” in probing Post Bank officials.