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.