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Former Stanbic Bank Employees Quizzed on illegal Mortgage Release :: Uganda Radionetwork
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Former Stanbic Bank Employees Quizzed on illegal Mortgage Release

Two former Stanbic Bank employees have been questioned at the Commission of Inquiry into Land Matters over an illegal mortgage release they executed in 2014. Ezra Matsiko was the Manager securities at Stanbic Bank in 2014. He processed a release of mortgage belonging to the late Professor William Kabapengane Isharaza. Professor Isharaza,
21 Mar 2019 19:53

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Two former Stanbic Bank employees have been questioned by the land probe over an illegal mortgage release executed in 2014.

Ezra Matsiko was the Manager securities at Stanbic Bank in 2014. He processed a release of mortgage belonging to the late Professor William Kabapengane Isharaza. Professor Isharaza, who died in May 2016 was a biochemist and a lecturer at Mbarara University of Science and Technology.

In 1989, Professor Isharaza acquired a loan from Uganda Commercial Bank. He used an 88 acre of land located in Kemiyoga, Kashari County as collateral.

He, however, failed to clear the loan and a 58 million shillings loan default was passed over to the Non-Performing Assets Recovery Trust NPART in 1995.

NPART consequently put the land on auction to recover the loan. Birabwa bided and won, paying 20.5million shillings for the land.

She says she received a transfer and certificate of title from NPART in 2014. She also received the mortgaged title and started on the process of registering the land from her husband’s name into their children’s names.

However, she could not complete registration since she later lost the original title registered under her husband’s name.

According to documents, before the commission, Stanbic Bank issued a release of mortgage over that land.

Matsiko says that in 2014, Prof. Isharaza came to him and said that he had a title. He says that he checked with the bank records and realized the bank had no debt with Isharaza

 Commission Chairperson Lady Justice Catherine Bamugemereire faulted Matsiko of executing a document that was not under the bank’s mandate. Matsiko apologized for having worked outside the bank’s mandate.

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However, in a letter dated 27th February 2019, Viola Kyaterekera the manager specialized recoveries Stanbic Bank denies the bank executing that release of mortgage. Matsiko insisted he worked under the instructions of the bank. 

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Richard Oula Ojuya, former manager business banking credit, Stanbic bank was also quizzed on his involvement in the matter. Working as the legal attorney of the bank, Ojuya endorsed the release of mortgage. He told the commission that his mandate was to sign documents exiting the bank after verifying that all relevant offices have cleared the document.

He says the release of mortgage had been cleared by the collateral unit, accounts management and legal department among other offices.

The Commission’s lead Counsel Ebert Byenkya, however, told him that there could not have been a debt since Isharaza had not sought a loan with Stanbic.

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