Turkish national Harun Aydin who is alleged to have obtained Sh15 billion from Equity Bank to set up a pharmaceutical plant in Uganda is a stranger to the bank’s records, MPs heard yesterday.
Equity Bank managing director Gerald Warui on Wednesday told MPs probing the multi-billion transaction that the Turk is not only having no account with the bank but equally has no history of credit facility at the financial institution.
“He (Aydin) does not operate and does not have a banking relationship with us neither does he have a loan with Equity Bank,” Warui said.
Warui stated that the bank has not advanced any credit facility to the tune of Sh15 billion to any individual or pharmaceutical firm in Uganda.
“We have not extended a facility of Sh15 billion to any pharmaceutical company in Uganda. We want records to reflect that,” Equity Group director for legal services Christine Browne added.
The new revelations contradict a position by Deputy President William Ruto that he helped an investor from East Africa secure Sh15 billion loan to invest in Uganda through a call to the bank.
“The investor of that factory came to this office and sat on the same seat where you are seated two years ago and asked if I could connect them with Equity Bank,” Ruto said during an interview at his Karen residence.
“I picked the phone, called Equity and told them that ‘there is an investor in my office and because you have a branch in Uganda; can you help him set up the business he wants? So when the individual succeeded and got Sh15 billion loan and proceeded to put up the company, where is the problem if I am invited for the launch?”
But according to Equity’s chief risk and compliance officer Samuel Gitwekere, the bank does not give loans on phone calls but rather follows strictly the CBK guidelines and Equity’s internal policies and procedures.
Warui also told the committee that he was unaware of any phone call to the bank from the DP to facilitate the loan.
“I am not aware of it (phone call). Given time I can try to find out because we have many senior people at the bank including board members.”
The MD, who was appearing before the National Assembly’s Finance and National Planning Committee chaired by Homa Bay Woman Representative Gladys Wanga, said the bank’s subsidiary in Uganda can only give loans to a maximum Sh2.3 billion and not Sh15 billion as claimed.
“We have branch limits, beyond branch limits the loans come to head office. In the head office we have committees and those committees also have limits, beyond the committees’ limits it goes to the Credit Board of Kenya and an amount beyond that goes to the board for approval,” he said.
The MD however admitted that the bank has links with Dei Group Company in Uganda dating back to 2014.
Dei Group deals in pharmaceuticals, research and value addition on produce and is linked to the vaccine facility in Uganda’s Wakiso District whose launch was attended by Uganda President Yoweri Museveni and DP Ruto.
“Dei is our customer in Uganda, that one I don’t want to deny. I also want to mention that in terms of lending we have not lent the Sh15 billion to any of those customers in Uganda,” Warui said.
He added, “When it comes to Uganda, Uganda cannot be able to give a loan of such amount. The amount they can lend to any individual customer is capped to a limit of about Sh2.3 billion. That is the maximum they can lend.”
Wanga questioned the bank’s dealing with Dei Group even after Financial Intelligence of Uganda froze accounts of some of its directors owing to suspicion of money laundering.
“This is a public matter commented on by the President of Uganda. The account was frozen owing to suspicion of money laundering. Does it concern you about a client as big as Dei?” she posed.
Gitwekere in response said the bank is not aware of the allegation of frozen accounts but assured depositors that their money is safe.
Wanga’s team had invited the bank’s top leadership to shed more light on the alleged issuance of a credit facility for Sh15 billion by Equity Bank to a Turkish national.
The committee also wanted to ascertain whether the bank adhered to Section 45 of the Proceeds of Crime and Anti-Money Laundering Act which requires banks to undertake reasonable measures to satisfy themselves as to the true identity of the borrower.
Speaking during the meeting, Luanda MP Chris Omulele said the bank has been professional and protective of its customers and has explained it self.
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