Bank loses Shs1 billion in fraudulent land deal

Kampala- A man has been detained after he allegedly ripped off an elderly man and Tropical Bank in a land deal estimated at Shs1 billion.

Mr Patrick Onyango, the Kampala Metropolitan Police spokesman, said the suspect is being held on charges of obtaining money by false pretences and uttering false documents.

“We received a complaint from the bank and a hunt started. The suspect was arrested and he is detained at the Central Police Station in Kampala,” Mr Onyango said.

The contested two-acre piece of land is located in Mulago, a Kampala suburb. It is alleged that the suspect gave a Shs10m loan to Mr Aggrey Kasule, 70, and he was to pay back the money in three months with interest of Shs9m.

The suspect reportedly told Mr Kasule to sign an agreement in which he indicated that he had sold part of his land to him.

According to t police, the suspect went ahead to convince his victim to process the land titles for both pieces of land.
The suspect reportedly obtained land titles for both plots, but he put one in his name. When Mr Kasule reportedly failed to pay in the stipulated time, the suspect returned to him with another idea.

“The suspect told him that he had given the land title as collateral in Tropical Bank and they were in danger of losing the property if they didn’t pay the money,” the Kampala Metropolitan Police spokesman said.

The fraudulent deal
Mr Onyango said the suspect told the victim that they should put the second land title as collateral in the same bank to save the land.

Fearing to lose his land, the victim went with the suspect to the bank and they gave in the second title and he signed.

“What Mr Kasule didn’t know was that the suspect had taken a loan of Shs400m from the second land title,” he said.

Thereafter, the suspect vanished. The bank took over the land and sold it. It was then that Mr Kasule was able to know the problem and put a caveat on the land.

Efforts by the buyer to transfer the property became futile because of the caveat. The buyer then reportedly contacted the bank which discovered that they were dealing with a fraudster, prompting them to contact the police.

Mr Onyango said they have completed their investigations and the file is yet to be submitted to Resident State Attorney.

abagala@ug.nationmedia.com
SOURCE: DAILY MONITOR

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