Bank of Baroda pins Kirumira on UGX 190m fraud

3672 Views Kampala, Uganda

In short
Bank of Baroda has provided more information to the Criminal Investigations Department – CID showing that businessman Godfrey Kirumira was directly involved in the fraudulent diversion of 190million shillings.

Bank of Baroda has provided more information to the Criminal Investigations Department – CID showing that businessman Godfrey Kirumira was directly involved in the fraudulent diversion of 190million shillings.

Last week police quizzed Godfrey Kirumira about the diversion of 190million shillings that was wired from Kiruhura district intended to end up in the consolidated account in Bank of Uganda. Instead, the money was traced to Kirumira’s Bank of Baroda account.

After being questioned at the CID headquarters in regard to this matter and facing arrest, Kirumira took an undertaking which he has since honored and paid back the 190millilon shillings. 

But a source in Bank of Baroda said the bank had availed police information to the effect that Kirumira had paid 150,000 shillings to have the account in the names of Baggery Trading Company re-opened.

The account was re-opened and money was diverted unto the account which had not been operational for over four years.

The latest revelation has since dashed Kirumira’s efforts to be let off the hook in a case in which he is accused of fraud.

Bank of Baroda insiders intimated to URN that an internal investigation is trying to identify who in the Bank assisted Kirumira to divert the money from the consolidated account to an account by Baggery Trading Company. 

The scam came to light after Kiruhura district officials followed the money which was meant for development and found that it had not been deposited in the consolidated account.

Bank of Baroda mounted a search and realized that the money had been diverted into Baggery Trading Company account and managed to arrest the manager as he tried to withdraw the last five million shillings.

Earlier, Police had arrested Fred Kayiira, a Baggery Trading Company manager, on Wednesday, August 8 in the process of trying to withdraw the last installment of UX 5m.

In the statement, Kirumira made to CID, claimed that the money was deposited on the account by a one Fred Kirenga who has since been arrested.

The trio was placed on police bond after Godfrey Kirumura collapsed at CID headquarters while being interrogated by Director CID, Grace Akullo.