UBA SH108M FRAUD SHOCKER! Bank Staff Cited in ‘Inside Job’ as Afghan Man’s Compensation Is Drained in ‘Impossible’ Deal, Exposing Systematic Bank Failures
The High Court in Mbale has ordered United Bank for Africa (UBA) to pay over Sh148 million in damages and refunds following a fraudulent account opening incident. The court found the bank liable for negligence after an impostor successfully drained compensation funds intended for a former security guard.
Why it matters
This case highlights critical vulnerabilities in banking security protocols and the legal accountability of financial institutions for internal fraud and identity verification failures.
United Bank for Africa (UBA) has been ordered to pay more than Sh128 million after the High Court in Mbale found the bank liable for allowing a fraudster to open an account in another man’s name, receive his compensation and withdraw Sh108.23 million despite glaring red flags.
The explosive judgment has raised fresh questions about possible internal failures and the role of bank staff who processed the account, particularly after court heard that employees involved in opening the suspicious account were subjected to disciplinary action.
Justice Farouq Lubega ordered UBA to refund Sh108.23 million to Michael Wilson Mazuno, the money that was fraudulently withdrawn from an account opened in his name, and awarded him another Sh20 million in general damages.
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