UGANDA: A spate of ATM Thefts: Shs2b Stolen in 14 Days
Two weeks of brazen thefts from automated teller machines (ATMs) in four Kampala suburbs resulted in the loss of Shs2 billion. The Flying Squad is investigating.
A few days ago, a 15-member theft ring was busted after an SGA Security Group team sent to Nansana to restock an ATM with cash that went missing.
The security company operates ATMs in Uganda on behalf of several financial institutions.
SGA Security Group dispatched a five-person crew to Nansana for a supposedly routine cash-loading assignment.
Sunday GossipA2Z has determined that they are all at large with an unspecified sum of money.
The team’s cash loaders were given cash, passwords, and PIN codes to access the ATM in Nansana. Escorts served as their protection.
The disappearance of cash loaders and escorts prompted SGA Security Group to conduct housekeeping, which revealed that Shs2 billion had been stolen, presumably by its employees.
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The police are currently detaining ten SGA Security Group employees for restocking ATMs in Kawaala, Namirembe Road, Kasubi, and Nansana with significantly less cash. In total, the undersupply amounted to two billion shillings.
According to reports, the recent disappearance at Nansana was the second time in as many days that shenanigans occurred at the ATM.
Mr. Daniel Arinaitwe, one of the managers at SGA Security Group, confirmed via telephone to Sunday Monitor that the company is aware of the recent events.
The police are investigating this matter, so he said curtly that he could not elaborate.
SGA Security Group, founded in 1969 as Factory Guards Limited and headquartered in Nairobi, Kenya, has expanded its operations to Uganda and Tanzania.
In addition to providing security services to large corporations in Uganda, SGA Security Group also provides ATM vaulting, cash loading, and management services to several financial institutions in the nation.
Initial police investigations indicate that SGA Security Group relies on its armored services to deliver cash to ATMs sponsored by respective banks.
The sponsoring banks entrust SGA Security Group with their vaulted funds.
Typically, the funds are insured to protect against potential risks.
The SGA Security Group then issues a demand note to the bank for payment of the rendered services.
We are aware that thefts affect the majority of commercial banks, but insurance payouts always keep them out of the news.
Five thefts in two weeks were unusual in a recent case involving a prominent local bank.
Mr. Patrick Onyango, a spokesperson for the Kampala Metropolitan Police, has confirmed that 10 SGA Security Group employees are currently detained at the Kampala Central Police Station as investigations into the thefts continue.
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However, according to the SGA Security Group, twelve suspects turned over to law enforcement.
“The management of SGA Security Group would load money that [the local bank in question] had requested, and then the money would be taken to the machine, but the people who load money into the machine would load less than what the bank requested,” Mr. Onyango stated about the thefts.
While insurance coverage mitigates the impact of such archaic robberies, commercial banks in Uganda are clearly on guard.
The Uganda Bankers Association, an umbrella group for central bank-licensed commercial banks, held the first financial fraud forum last month.
Numerous stakeholders, including commercial banks, the Judiciary, and security agencies, attended the event.
Robberies, including jackpotting ATMs, discussed as a clear and present danger.
Due to the cost of living crisis in Uganda, traditional heists have become more popular.
All commercial banks hire security firms to transport money and restock ATMs, according to a reliable source. This, according to our forum-attending source, is the underbelly of commercial banks.
In the latest episode, SGA Security Group informed the affected bank of the Flying Squad’s Thursday arrests. Investigations indicate a possible inside job.
SGA statement
SGA replenishes offsite ATMs for several financial institutions.
This happens daily and reconciliations are done to balance the cash dispensed to customers with the residual cash per ATM.
On Monday 17th April 2023 after Easter weekend, the system indicated that several ATMs were running low on cash.
We immediately sent a team to the ATMs, who confirmed that the physical balances did not match the loaded amounts.
12 of our employees are helping the police with investigations while reconciliations and balancing continue.
We would like to assure the public of all financial institutions that service continues uninterrupted even as investigations are ongoing.
After receiving offsite ATMs, SGA manages access and accountability, not financial institutions.
Brendah Ankunda
Head of communication.
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