Equity Bank Uganda, a subsidiary of Equity Group Holdings Limited, is at the centre of a widening financial scandal, with fresh allegations emerging over its alleged role in facilitating unregulated cross-border lending schemes and questionable transactions through legal proxies and shadowy financial entities.
A whistleblower’s letter addressed to the Registrar of the High Court’s Anti-Corruption Division, seen by DailyExpress, accuses Equity Bank of colluding with entities such as Azima Financial Services Limited and Jabo & Co. Advocates to “masquerade as law firms and financial consultants” in order to lend money outside the regulatory framework.
“The bank, under the pretext of outsourcing legal services and through Jabo & Co. Advocates and Azima Financial Services Limited, has been engaging in money lending activities, borrowing at a rate of 13% from Equity Bank and lending at 15% and above,” reads part of the letter, which is also copied to the Financial Intelligence Authority, Uganda Law Society, and the Governor of the Bank of Uganda.
The whistleblower further alleges that these entities operate with impunity, flouting financial laws and exploiting judicial structures for coercion.
“They engage in aggressive recovery methods, including obtaining criminal summons and issuing arrest warrants, under the guise of civil recovery, with the full knowledge and blessing of some court officials and registrars who are either complicit or beneficiaries,” the letter states.
The whistleblower also questions the ethical conduct of key individuals linked to the bank’s alleged schemes, notably Mr. Jamal Wante, a director at Azima and partner at Jabo & Co. Advocates.
“Mr. Jamal Wante is both a partner at Jabo & Co. Advocates and a director in Azima Financial Services Ltd… This dual role is not only unethical but potentially criminal,” the letter claims.
Furthermore, the letter raises alarm over what it describes as “a well-oiled, highly connected, and well-coordinated syndicate” using bank resources, legal cover, and court procedures to target unsuspecting Ugandans in need of financial assistance.
“Equity Bank Uganda Ltd is used as a front to lend money to Ugandans who innocently go there to borrow, but the money is actually being lent by Azima Financial Services Ltd… This is a classic case of predatory lending, fraud, and abuse of the legal process,” it reads.
The alarming revelation by the whistleblower comes at a time when Equity Bank Uganda is grappling with internal turmoil. In May, the bank dismissed nearly 200 staff members after an audit unearthed widespread fraud linked to M-Pesa transactions and suspicious loan approvals.
The scandal has already cost the bank billions of shillings in fraudulent disbursements and failed reconciliations.
While the Bank of Uganda and the Financial Intelligence Authority have yet to issue official statements in response to these claims, industry analysts are calling for a full-scale investigation into Equity Bank’s lending practices, especially those involving third-party intermediaries posing as law firms or consultancy agencies.
Efforts to reach representatives of Equity Bank Uganda and Jabo & Co. Advocates for comment were unsuccessful by press time.
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