KAMPALA – Centenary Bank is facing a high-stakes legal battle at the industrial court following a lawsuit filed by a former Applications Analyst who avers he was “callously” and “arbitrarily” dismissed after blowing the whistle on a UGX 3.56 Billion system breach.
The suit, which highlights a breakdown in corporate governance and fair hearing internal processes, portrays a chilling narrative of a “hero-turned-villain” in one of Uganda’s leading financial institutions.
According to court filings seen by this Publication, the ordeal began on October 4, 2023, when the Claimant—then an Application Analyst in the Business Technology Division at Mapeera House—was called to resolve a massive imbalance of UGX 3.56 Billion. The discrepancy arose from suspicious MTN Mobile Money transactions within the Bank’s Bill payment system.
The Claimant successfully traced the unauthorized access to a computer at the Kabale Branch, which had used the login credentials of a teller at the Mapeera Branch. Despite his prompt escalation of the report to supervisors—which led to the blocking of several fraud-linked accounts—the Bank’s Security and Investigations Department later turned its sights on him after a period of three months from the date of discovery of the Fraud.
The legal dispute centres on what the Claimant describes as “premeditated and malefic” disciplinary proceedings. After being detained for four days at CPS without charge and placed on indefinite suspension, the Claimant was initially accused of performing a “Brute-force attack” on the system.
In an ironic turn of events, Centenary Bank’s own Disciplinary Committee cleared the Employee of all charges related to the UGX 3.56 Billion fraud in October 2024. However, instead of reinstating him, the Bank allegedly framed new charges concerning a Burglary at his home where his Bank laptop was stolen—an incident that occurred three months after the fraud was already detected and he had promptly reported the incident to the Bank and Police within 24 hours as enshrined in the Bank’s Human Resources Manual..
The Plaint details how Centenary Bank summarily dismissed the Employee on the grounds that he “obstructed internal investigations” by losing the laptop and providing “inconsistent information” to the Police regarding his stolen personal wallet and SIM cards.
The Claimant argues these grounds are legally untenable because:
- Private Life vs. Employment: The Burglary occurred at his private residence on a non-working day specifically on Sunday January 14th, 2024.
- Technical impossibility: The loss of a laptop in January 2024 could not have “obstructed” an investigation into a Fraud that the Claimant himself had already fully reported and documented in October 2023.
- Breach of Contract: The Bank ignored its own Human Resources Manual and the Employment Act, opting for “Summary Dismissal”.
The Claimant, who served the Bank for over six years with a record of “spectacular performance,” is now seeking for a declaration that his indefinite suspension was illegal and Summary Dismissal was procedurally and substantively unlawful in total contravention of the provisions of the 1995 Constitution and the Employment Act 2006.
When we reached out the Bank for a comment, they confirmed that they were aware of this case. However, noted that it was a subject of a court process and therefore sub judice, and they could not discuss the details of the evidence of the matter before court as a law-abiding Institution but implored the complainant to await the outcome of the suit.
This case serves as a critical test for employment law in Uganda, particularly regarding the protection of IT professionals and the limits of a Bank’s authority over an employee’s private life and personal misfortunes.
