Story by TV10 Investigative Desk
In a significant development, Anthony Kituuka has relinquished his position as Managing Director of Equity Bank Uganda. Sources close to the matter reveal that Kituuka’s decision to step down was motivated by his desire to protect his legacy, marking the end of an era in his illustrious career.
Anthony Kituuka’s resignation as Managing Director of Equity Bank Uganda comes as a surprise, given his relatively short tenure of just two years. He took over the reins in November 2022, replacing Samuel Kirubi, who was removed by the Bank of Uganda due to non-performing loan facilities approved during his tenure.
During his time at Equity Bank Uganda, Kituuka oversaw significant growth, increasing the bank’s customer base to 2.2 million and amassing customer deposits nearing 3 trillion Ugandan shillings. The bank’s loan book also grew to nearly 1.7 trillion Ugandan shillings under his leadership.
Kituuka’s resignation was reportedly mutually agreed upon between the bank and him, and he will serve a notice period to ensure a smooth transition. The bank’s Board of Directors has accepted his resignation, and a search for his successor is underway.
A contentious loan worth forty-seven billion shillings was allegedly issued to John Bosco Muwonge, a prominent landlord with numerous shopping arcades in downtown Kampala. The loan, which has raised eyebrows, was reportedly used by Muwonge to purchase shopping arcades from his own siblings, who were struggling financially at the time.
Contentious loans were also given to Mogas, a fuel company facing financial difficulties, and Dei Industries Limited, which received billions to construct a pharmaceutical factory in Kiryammuli village, Matugga.
The Bank of Uganda declined to renew Samuel Kirubi’s tenure as Managing Director due to the borrowers’ failure to repay these loans. Despite his involvement in significant financial losses, Kirubi was rehired by his Kenyan employers as the Chief Operations Officer at Equity Group Holdings, a position based outside Uganda.
Kirubi’s successor, Anthony Kituuka, has also resigned as Managing Director of Equity Bank Uganda after a two-year tenure. Kituuka’s resignation was accepted by the Board of Directors, and he will serve a three-month notice period.
Kituuka’s departure from Equity Bank Uganda was reportedly driven by attractive job offers from two to three other financial institutions in the country.
His former employers attempted to persuade him to stay by promising a promotion and additional benefits. However, Kituuka chose to prioritize his legacy over these incentives.
During Kituuka’s tenure, following the exit of his predecessor Samuel Kirubi, another significant incident occurred. A group of rogue staff members at the bank orchestrated a heist involving sixty-five billion shillings’ worth of loans. These funds were disguised as legitimate loans to customers but were actually shared internally among the rogue staff.
The arrest of Kenneth Onyango, a top credit manager at Equity Bank, marked a significant turn in the investigation. Onyango’s threats to reveal more information potentially implicated other top managers at the bank. The Directorate of Public Prosecutions’ (DPP) directive to widen the investigation and apprehend more suspects put pressure on the bank.
However, instead of cooperating, the bank appeared to lose interest in the case. Meanwhile, more instances of past heists came to light. One such case involved a contentious debt of twenty-nine billion shillings contracted by Luwaluwa Investments, a company owned by Ronald Luwangula. Notably, Luwangula was revealed to be a business associate of Samuel Kirubi, the former Managing Director of Equity Bank.
The relationship between Kirubi and Luwaluwa Investments raises concerns about a potential conflict of interest. As the Managing Director of Equity Bank, Kirubi authorized loans to Luwaluwa Investments, a company in which he had vested interests. This conflict of interest is exacerbated by the fact that the company failed to repay the loans.
Furthermore, Kirubi’s decision to write off the debts incurred by Luwaluwa Investments resulted in significant financial losses for Equity Bank. This move has sparked controversy and raised questions about Kirubi’s management practices during his tenure at the bank.
In addition to the Luwaluwa Investments loan, Kirubi was also implicated in authorizing another questionable loan worth over two billion shillings. These incidents have cast a shadow over Kirubi’s leadership and raised concerns about the bank’s lending practices and internal controls.
It appears that Julius Mujurizi Mwesigwa, allegedly a business partner of Samuel Kirubi, received a loan that was later written off, causing a conflict of interest and depriving the bank of income.
This incident is part of a larger pattern of contentious loan dealings at Equity Bank, which have led to significant financial losses. Anthony Kituuka, the former Managing Director, and Dorothy Kezia, the Head of Finance, have been accused of concealing these dealings.
Kituuka’s resignation has been attributed to his desire to preserve his legacy and avoid prosecution. Some insiders believe that his resignation was a compromise to spare him from prosecution.
Equity Bank has been plagued by a series of heists, including a recent incident where KSh 1.5 billion was lost to an insider and his father.
The recent scandals surrounding Equity Bank Uganda, including the alleged involvement of former Managing Director Samuel Kirubi in questionable loan dealings, have raised concerns about the bank’s financial management and transparency.
To restore public confidence, Equity Bank owners and the Bank of Uganda must take swift action to address these issues. This includes conducting a thorough investigation into the alleged wrongdoing, implementing measures to prevent similar incidents in the future, and ensuring that those responsible are held accountable.
Key Steps to Restore Public Confidence:
- Conduct a thorough investigation into the alleged questionable loan dealings and other financial irregularities.
- Implement measures to prevent similar incidents in the future, such as strengthening internal controls and improving transparency.
- Hold those responsible accountable for their actions, including former Managing Director Samuel Kirubi and other officials who may have been involved.
- Protect savers’ funds by ensuring that the bank’s financial management practices are sound and transparent.
By taking these steps, Equity Bank owners and the Bank of Uganda can help restore public confidence in the bank and ensure that it operates in a transparent and accountable manner.
