Banks, Teachers Clash Over Loan Payments


A serious rift has erupted between Centenary, Stanbic Banks and teachers from Ntungamo District after they received information that some teachers have swamped their banks accounts to dodge paying their loans. According to Information obtained from sources, Banks have initiated criminal sanctions against teachers and government officials who stood surety for them. Sources say more than 120 teachers will soon be arrested and prosecuted in courts of law if they do not repay their loans.

Insiders however say the Uganda National Teachers Union (UNATU) are negotiating with the affected banks, which have already initiated criminal sanctions against the said teachers and the district local government officials who helped them transfer their salary accounts to other banks after receiving salary loans thus causing massive losses in default to the primary banks.

UNATU district chairperson,  Gideon Kabangizi said the teachers swapped their accounts before servicing the loans they acquired.

“The most affected banks are Centenary and Stanbic banks. I and the executive have been in negotiations them to find a way of how this case can be settled without the teachers being humiliated. After getting the loans, they (teachers) were allegedly helped by some people here (at the district headquarters) and reopened their salary accounts in other banks leaving the primary banks without where to cut loan servicing money,” Kabangizi said.

He said 120 teachers and some district officials are being investigated for fraud.

“Last week, a female head teacher  was arrested at the bank. I pleaded with the bank to see that she is released. There are other 120 who are wanted. We are in negotiations so that they come to the bank and see how to handle things before they are arrested. This would be a big number and a humiliation to the profession. We know we take multiple loans due to our challenges but we can’t afford embarrassing everyone,” he said during the release of the Primary seven pre-PLE district exam results at the Ntungamo district council hall on Tuesday.

In a separate interview with this reporter, he said the district human resource and education staff officials were helping teachers commit fraud and they too are likely to face charges concurrently with teachers if the banks take them on for criminal investigations.


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