Shs 75m Fraud: Court Orders Stanbic Bank to pay Shs 40M to retrenched employee
The Industrial Court has ordered Stanbic Bank Uganda Limited to pay more than Shs40 million to its former employee, Elizabeth Nyasuna, after ruling that her dismissal over a disputed Shs75 million cash withdrawal was unlawful and unfair. In a judgment delivered on June 16, 2026, Justice Anthony Wabwire Musana found that the bank failed both […] The post Shs 75m Fraud: Court Orders Stanbic Bank to pay Shs 40M to retrenched employee appeared first on Daily Star.
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The Industrial Court has ordered Stanbic Bank Uganda Limited to pay more than Shs40 million to its former employee, Elizabeth Nyasuna, after ruling that her dismissal over a disputed Shs75 million cash withdrawal was unlawful and unfair.
In a judgment delivered on June 16, 2026, Justice Anthony Wabwire Musana found that the bank failed both procedurally and substantively to justify the termination, faulting it for mishandling the disciplinary process and failing to prove allegations of gross negligence.
Nyasuna’s employment with Stanbic Bank dates back to January 2008 when she joined as a teller. She was confirmed as a permanent and pensionable employee in April 2008 and went on to serve in several senior roles, including acting branch manager and Team Leader for Customer Service, often performing dual responsibilities without additional compensation. In April 2012, she was assigned to take charge of the Entebbe Main Branch.
Trouble began on April 23, 2012, when a customer withdrew Shs75 million in a transaction that was later flagged as fraudulent. Days later, Nyasuna was arrested, detained overnight, and suspended on April 26, 2012, with the suspension letter backdated to April 25. She was subsequently dismissed on July 13, 2012, effective July 16, on grounds of gross negligence.
Challenging her dismissal, Nyasuna argued that the decision was unlawful, unfair, and in violation of the Employment Act, the bank’s disciplinary procedures, and the Collective Bargaining Agreement.
She maintained that the alleged fraud originated from a Head Office suspense account and not from her actions. She also contested the prolonged suspension and sought compensation for lost earnings, benefits, and a refund of Shs 6.1 million that had been deducted from her accounts to clear a salary loan.
Stanbic Bank denied wrongdoing, maintaining that Nyasuna, while acting as branch manager, authorised the withdrawal without proper verification.
The bank argued that she failed to interrogate the transaction or confirm its authenticity in the system, amounting to gross negligence and a fundamental breach of duty. It further contended that she was subjected to a fair disciplinary process and given an opportunity to defend herself.
However, the court found glaring gaps in the bank’s case and disciplinary procedures. Justice Musana held that the bank failed to present minutes of the disciplinary hearing, did not call witnesses who participated in the process, and did not provide the claimant with the investigation report. The court also noted that the bank could not demonstrate that Nyasuna’s actions directly caused the financial loss.
“Consequently, we find the Claimant’s dismissal procedurally and substantively unfair and unlawful,” ruled Justice Musana.
He added: “In the absence of committee minutes or a testifying witness, the record lacks cogent evidence that any credible verification of misconduct took place.”
The court consequently awarded Nyasuna Shs1,546,994.40 for lack of a fair hearing, Shs2,320,494 as unpaid salary during unlawful suspension, Shs6,862,649 as severance pay, Shs1,546,994.40 as salary in lieu of notice, and Shs27,845,900 as general damages.
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