Young
bank manager who stole Shs780m
In
2009, 28-year-old Abdul Kharim Kaluuma was punching above his weight in
financial terms and indeed his fists were making an impact among his peers,
family and workmates. By 2010, as some of his formers classmates were still
struggling to look for employment, he was already a proud owner of a piece of
land in
Lubya
village, Rubaga Division in Kampala. His bank account was ‘fat’.At home, he
would keep more than
Shs20m
for miscellaneous spending.He even ventured into small scale businesses. At
work, in Stanbic Bank, he was a star performer, highly respected and trusted.
Because of this, even his rise in ranks as general ledger clerk incharge of
consolidated funds, was not questioned, despite his age. His requests were
often seen to many as army orders which are not discussed but enforced. “Hello,
I’ve dropped Riley file in unprocessed folder titled Riley 221210, please
process Regards, K Abdul-Kharim, Consolidated payments 0414343151,” he emailed
to Stanbic Bank IT department. Stanbic Bank IT department quickly honored.“Hi
all, I have dropped SFI file for Boueftcom 040809. Please process.Regards A.K.
Khariim consolidated payments. 0414343151 KOPC Yes, we can,” he sent another on
a different day. The obedient IT department didnot question on all
occasions.The clerk sent similar instructions several times. And againthe IT
department would humbly abide by his instructions and complete the transfers.
For 20 months, from May 2009 toDecember 2010, it went on.
Anomalies
discovered
All
of a sudden, the bank coffers’started to slim as reflected in the
auditor’sbooks. Bank officials started nosing questioning what could be causing
the losses. Mr. Richard Andruma, Stanbic Bank’s internal investigator was engaged
to understand what could have caused the problem. His investigations pointed at
Shs787.5 million less of what the bank would have had.Where had the money gone,
became the internal investigators’ business.After months of scrutiny, the bank investigators
scan found the glitch inthe bank commission account that was causing pain in
the entire institution.Mr. Andruma and his colleagues had to go through a pain staking
investigation in which they looked at all the transactions that were supposed to
be made to the bank commission account and those that didn’t make it there.
Inquiries brought them to official emails that were sent by different bank
clerks and question marks rotated around Kaluuma’s instructions.
The
investigators dug deep into Kaluuma’s instructions that led them to believe
that he could help find answers to the puzzle. Kaluuma was summoned to respond to
the allegations. He didn’thave much to say.
On
January 20, 2011, Mr. Andruma opened up a criminal case at Central Police Station
in Kampala.
Commissions
swindled
Stanbic
Bank was also ready with an interim report which they handed over to the
police. The report was clear. That between the months ofMay 2009 and December
2010, while working as the in charge of processing salaries of public servants
in Stanbic Bank, Kaluuma embezzled the money that had been earned as commission
from the salaries.Armed with the bank report, Detective Inspector Balaam Bwegye
arrested and detained Kaluuma on charges of embezzlement. Kaluuma didn’t waste
police’s time.He confessed to having participated in the diversion of money
meant for the bank commission account to individual accounts.
How the
money was moved
Police
discovered that some of the money had been wired to Dennis Namugera’s bank
account. Evidence with the police shows that Kaluumacredited Shs6m to a one
Umar Ntege’s account. At different times, Kaluuma could credit money ranging in
millionsto Namugera’s account.On August 5, 2009; his instruction to credit
Shs5.5m on Namugera’s account was implemented. Mr. Bwegye arrested Namugera.“When
we interrogated him, he didn’t deny receiving the funds but said the money was
sent to him to buy building materials for his boss Kaluuma and he had spent
every coin to the satisfaction of his boss,” the detective inspector wrote. Namugera
was let off the hook. Police then had to look for Ntege, Willy Balongo and
Swaibu Lutalo to whose personal accounts Kaluuma had wired money. It appeared
to the detectives that many of the personal accounts Kaluuma credited the money
to, he was either to pay for services or for purchasing commodities for his businesses.
Kaluuma made a confession to the detectives who later took him to court where
he made an extra judicial statement.
Detectives
took Kaluuma- for a search in his home where they recovered Shs18m and US$550.
Detectives also froze his account in Barclays Bank which had more than
Shs105m.His home in Lubya was seized and all his businesses were put on the
table.The Director of Public Prosecutions looked at the file and subsequently sanctioned
embezzlement charges against Kaluuma. Kaluuma was presented in court and
charged with embezzlement.
Charged
in court
In
spite of the earlier confession,when Kaluuma was in court, he pleaded not
guilty to the charges.He said he didn’t generate the email because it was
signed off by a name which wasn’t his and one he didn’t submit to the IT
department.For instance, in some emails the author of the email would use A.K.
Khariim yet the name he had given toIT was Kharim A.Jimmy Okot, who was Stanbic
Bank’s systems administrator and one who registered Khariim in the system,
insisted that it was Khariim who had generated the emails. Okot added that
Kaluuma’s first name Kharim with a double “I” was the IT department’s creation.
Justice Paul Mugamba agreed with Okot that it was Kaluuma who generated the
emails that caused Stanbic Bank to lose millions of shillings.The suspect also
retracted the confession saying that it was extracted under duress, which is
against the law, and demanded that it should be thrown out. Justice Mugamba
subjected the confession to a test and ruled “Ihave no doubt in my mind that
the confession is true and that while the charge and caution statement is
corroborated by the evidence adduced, the charge and caution statement also
corroborates the evidence adduced,”Justice Mugamba said, adding: “Money was
indeed lost to the bank and taken by other not entitled through the aegis of
accused”.
These
statements clearly showed a direction where the case was going.The judge
finally ended it: “In the result, the accused (Kaluuma) is convictedon the
alternative count of causing financial loss, contrary to section 20(1)of the
Anti Corruption Act”.Kaluuma was sent on remand awaiting sentence. On March 20,
2012, the judge sentenced Kaluumato to seven years in jail. The property he had
obtained from the embezzled money was also attached.
The
Anti-Corruption act (ACA) 2009 provides
for Causing Financial Loss
Section 20(1)
states that any person employed by Government, a bank, a credit institution, an
insurance company or a public body who in the performance of his or her duties,
does any act knowing or having reason to believe that the act or omission will
cause financial loss to the government, bank, credit institution commits an
offence and is liable on conviction to imprisonment not exceeding 14 years or a
fine not exceeding 360 currency points or both.
For prosecution to secure a conviction
on Causing financial loss, there must be proof that the accused was an employee
of the bank, that the accused did or omitted to do an act that they had
knowledge would cause financial loss and that the loss indeed occurred.
In such an instance for Impartial
lawyers to assist;
Step 1
They
would advise you to report the incident at the nearest police station.
Step 2
They
would advise the police to conduct a financial investigation to follow up on
the lost money and recover illicit assets.
Step 3
They
would advise the DPP to prove all elements of causing of financial loss to the
threshold of proof beyond reasonable doubt.
This article is courtesy of The Daily
Monitor and edited by Advocate Vera Newumbe.
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