The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Principal Judge, Flavian Zeija, has called for stiffer laws and penalties for fraud offenses, especially for repeat offenders.
Speaking at the Second Fraud Forum by the Uganda Bankers Association in Kampala, Justice Nzeija said fraudsters in Uganda found it easy to stay in their trade because it was not costly to commit.
According to him many people who are involved in the crimes are likely to repeat the same after first conviction because of the inadequate penalties provided.
He urged judicial officers and police or prosecutors to always study the criminal history of offenders, so that repeat offenders are given a much stronger penalty, including denying them bail.
There are about 30 laws and other legislations providing for prosecution and penalties for any kind of fraud in Uganda.
But Justice Nzeija said the legal system has loopholes that also undermined the powers of a judge, including the absence of a minimum penalty in many laws.
“As long as discretion remains for the judicial officer to sentence up to the maximum without providing for the minimum, then it becomes difficult to have deterrent sentences,” he said.
Fraud cases in the banking industry include payment fraud, identity theft, card fraud, account fraud, account takeovers, online fraud, and investment scams, which evolve every day.
Of the fraud cases the banks registered, loan-related fraud accounted for 46.5 percent at the end of June 2024, while three months earlier in March, it was card, mobile, digital, or cyber fraud domination with 45.2 percent.
Other major types of fraud are in the category of impersonation, identity theft, forgeries, and cash suppression. These accounted for 21.9 percent in June but were the dominant in March 2023 accounting for 40.4 percent, according to data at UBA.
The theme for the forum “Collaboration against fraud targeted at the banking and payment services ecosystem: building resilience for today, tomorrow, and beyond,” was aimed at rallying collaboration amongst different stakeholder organizations in the country, as well as partnering with sister industries in the region.
UBA Chairman, Julius Kakeeto said that much as a lot was being done by the industry and the investigative and prosecution partner agencies, fraudsters also continue to invest and evolve including recruiting and training.
Bank of Uganda Deputy Governor, Michael Atingi-Ego blamed the growth in cyber and other crime to low employment levels, especially among educated youths, who also constitute a big part of the population.
“Our technology talent is fueled by a growing interest in software development to address day-to-day needs which, unfortunately, is sometimes misdirected towards harmful activities quite often with the help of more sophisticated partners,” he said, adding, “As leaders, we must position Uganda’s economy for positive digital economic growth, channel the energy and harness the talent of these young people to instead unlock new opportunities that bring about national development.”
Saying that the country was at a crossroads due to its young and dynamic population coupled with its agility and willingness to use digital tools either for advancement or to the detriment of the economy, the DG said only a culture change would help bring down fraud.
This, he said, was because the crime was greatly being perpetuated by employees in the system.
This was echoed by Eric Anderson Mugo, Senior Manager, of Ethics and Compliance at Safaricom, who said there is a need to keep upgrading security systems and strengthening the “Know Your Employee” measures.
He, however, explains that the complexity comes when the crime is conducted with people who have worked with and left the banking or telecom industries. These, he says know all the operations of the industry and just need a little information from an employee, like on a client with a big account, and then they will do the work.
Otherwise, he said there would always be inside job attempts at fraud.
Senior Superintendent of Police, Isiah Mutungi Igumira, the Head of Legal at the Criminal Investigations Department called for real honesty among the bankers because, according to him, many cases of fraud are committed by them.
Igumira also called for what he called a mini cyber laboratory which would be used by both the police and the judiciary to expedite processes like issuance and execution of court orders.
However, Igumira said lack of enough resources, including for facilitating their officers, makes it hard for them, leading to compromises.
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