By Our Reporter
NATIONAL
One fake Indian investor has been arrested for fleecing a Kampala City Bank of Shs2.6 billion while the other accomplice fled the country.
The two have been named by police as Gurijindeer Singh and Jaspreet Singh, who purported to be operating Escort Pharmacy head-quartered on Martin Road in Old Kampala, Rubaga Division.
The two according to police orchestrated a scheme and persuaded the top city bank (name withheld) to extend a loan to him and his employees in billions of shillings between April and September last year.
He is thought to have come close to securing sh10b from four other financial institutions in December, only to find that several lenders had tightened their checks.
Both Gurijindeer Singh and Jaspreet Singh, are co-directors of Escort Pharmacy, according to the economic crimes department of the Criminal Investigations Directorate (CID), headed by assistant Inspector General of Police Grace Akullo.
Detectives have since arrested Jaspreet Singh, together with four senior bank managers in the ongoing loan fraud that has hit banks.
Preliminary investigations indicate that Gurijindeer Singh and his wife, fled the country allegedly on a tip-off from a banker. Without divulging details, detectives said: “The Asian investors also fleeced suppliers.”
The pursuit for Gurijindeer Singh, is ongoing, according to CID spokesperson Charles Mansio Twiine.
“I can confirm that Police launched investigations in the fake loans scheme at the bank and the pursuit of suspects is on, although we have some in custody,” Twiine said.
How they did it?
Detectives said Gurijindeer Singh, his wife (names withheld) and Jaspreet Singh, created ghost workers under their firm – Escort Pharmacy, who they recommended to the bank for loans.
According to the detectives, the suspects wrote recommendation letters (expressing interest in acquiring a loan) for several employees to the bank.
“The letters contained a current or savings account, completed loan application form, to be a regular income earner (salary or pension), to be a resident in the branch’s area of operation, undertaking from the employer to inform the bank on any changes to employment status, permanent employment for at least a year, at least two salary payments made to the account and a copy of the appointment letter,” a detective said.
The suspects under ‘Escort’ indicated to banks by posting salaries of sh30m for two consecutive months as bait – prompting the applicants to request loans.
“They applied for between sh185m and sh200m in loans,” a detective privy to the probe, who spoke on condition of anonymity, said.
The detective indicated that the details emerged after they spent the greatest part of Friday combing for evidence and grilling bank officials at a financial institution in the city centre. He added that the fraudsters worked with insiders (bank managers) to fast track the loan approval.
“Once approved, they (Indians together with the loan applicant) would drive to the bank. While at the bank, they allow the applicant to enter and withdraw all the money as they lay in waiting. Once the money was picked – they would pay the commission to the applicant and flee.”
