FRAUD: Client Drags UBA Bank To Court After Dubious Disappearance Of UGX 1Billion From Standing Account

United Bank for Africa (UBA) Uganda has been thrust into the spotlight following allegations of disappearance of nearly shs 1 billion ($250000) from a long-standing client’s account.

Despite the bank’s public denial, further investigations reveal that the aggrieved client, EPA Carriers and Logistics Limited, has since filed a civil suit in the High Court.

Additionally, UBA’s parent company, United Bank for Africa Plc, has launched an internal investigation into the matter, raising questions about the bank’s accountability and internal processes

The scandal first came to light in early April 2024, when reports surfaced that nearly shs 1 billion had disappeared from the account of EPA Carriers and Logistics Limited, a loyal client of UBA Uganda since 2013.

The client reportedly discovered the loss and quickly escalated the matter to the bank through legal channels, demanding the immediate return of the missing funds.

A leaked letter from concerned bank staff revealed that the client’s legal representatives had issued a stern ultimatum to UBA Uganda, requiring the bank to return the lost money within seven days or face legal action.

Regulatory authorities, including the Bank of Uganda, confirmed they had received the client’s complaint, leading to an investigation into the incident.

However, UBA Uganda responded publicly by denying the claims.

In a press statement, the bank refuted the allegations as “spurious, false, and unfounded.” The statement read:

“UBA Uganda categorically refutes these allegations. No such incident has occurred, and we reassure our valued customers and the general public of our unwavering commitment to the highest standards of security and transparency.”

The bank further emphasized that its stringent security protocols safeguard customer accounts from unauthorized access or fraudulent activities, adding that it prides itself on a robust complaint-handling process to resolve customer grievances efficiently.

However, UBA Uganda responded publicly by denying the claims.

In a press statement, the bank refuted the allegations as “spurious, false, and unfounded.” The statement read:

“UBA Uganda categorically refutes these allegations. No such incident has occurred, and we reassure our valued customers and the general public of our unwavering commitment to the highest standards of security and transparency.”

The bank further emphasized that its stringent security protocols safeguard customer accounts from unauthorized access or fraudulent activities, adding that it prides itself on a robust complaint-handling process to resolve customer grievances efficiently.

Civil Suit

Contrary to UBA Uganda’s public denial, it has since been confirmed that EPA Carriers and Logistics Limited filed a lawsuit against the bank under Civil Suit No. 0136 of 2024.

The suit, which was filed in mid-April, accuses UBA Uganda of failing to protect the client’s funds and demands full restitution for the lost money.

This civil action highlights a major discrepancy between the bank’s public statements and the reality of the legal situation.

The legal representatives for EPA Carriers and Logistics Limited argue that the loss of nearly shs 1 billion is not only a breach of trust but a failure of UBA’s fiduciary duty to its client, thereby warranting significant legal redress.

Additionally, the bank’s parent company, United Bank for Africa Plc, which oversees commercial banking activities across Africa, has launched an internal investigation into the matter.

The parent company’s decision to step in reflects the seriousness of the situation, particularly given UBA’s broad operations across 20 African countries and its emphasis on maintaining its reputation as a trusted financial institution.

UBA Uganda’s handling of the case fueled further speculation, especially after it was revealed that senior managers at the bank, including key figures who might clarify the situation, had reportedly been “on leave.”

Their absence had only added to the uncertainty surrounding the bank’s internal response to the allegations.

Experts have voiced grave concerns about the implications of such a high-profile case, citing the potential for significant financial losses and sacking of top officials if the allegations are proven true.

Since reports indicate that the bank’s dilemma is linked to the Managing Director and Executive Director’s negligence and breach of customer care and Trust.

For senior management hiding or refusing to meet a customer has led the bank into legal battles .
The ED had been begged but he undermined the client’s pleas to give audience.

The reported failure to engage with the aggrieved client in a timely manner had also drawn criticism, with questions being raised about whether UBA Uganda’s management intentionally sought to downplay the issue to protect the bank’s public image which the appointing authority should review.