Bank of Africa, also known as BOA Uganda, is embroiled in an alleged cheating its workers through crooked practices that countermine their rights, benefits, and livelihoods, according to a former staff member.
Bank of Africa Uganda Main Branch , One Lugogo Building, 3 Lugogo Bypass, Kampala.
In a petitioned to the Bank of Uganda, Mwesigwa Micheal, a former employee, claims that Bank of Africa manipulates staff loan facilities, misappropriates provident fund contributions, and exploits exiting employees through punitive clauses and illegal financial restructuring.
Mwesigwa, who has already filed a suit in the High Court (Commercial Division), says the bank’s practices amount to “economic captivity,” designed to trap employees into continued service while stripping them of their rightful benefits upon resignation or termination.
Punitive Loan Enforcement – The bank invokes Clause 8(a) of staff loan agreements to trigger automatic recovery, overdraft conversion, and collateral seizure immediately after resignation or termination.
Phantom Overdrafts – After his resignation, Mwesigwa’s mortgage and unsecured loans were forcibly converted into a commercial overdraft without consent, a move he says was then used to justify selling off his property.
Provident Fund Abuse – The bank allegedly coerces staff into using their Provident fund savings to offset “phantom overdrafts,” bypassing the legally mandated role of fund administrators and violating the Uganda Retirement Benefits Regulatory Authority Act.
Constructive Bondage – By revoking preferential staff loan rates upon exit, enforcing punitive clauses, and forcing overdraft conversions, the bank allegedly traps employees in financial bondage that prevents them from resigning freely.
Unlawful Mortgage Practices – Overdraft facilities are enforced against exiting staff without lawful registration or variation of mortgage deeds, contrary to the Mortgage Act, 2009.
Mwesigwa argues that these practices not only breach contractual obligations but also violate Articles 24, 26, 40, and 50 of Uganda’s Constitution, which safeguard human dignity, property rights, and fair labor standards.
“The system is designed to punish anyone who dares to leave, making resignation feel like a financial death sentence,” Mwesigwa said.
Another staff member, still employed at Bank of Africa Uganda, has anonymously confirmed similar experiences, warning that employees risk losing their jobs if they raise complaints.
“We are scared to speak out because the bank threatens job security. Many of us feel trapped, but if you challenge the system, you are pushed out and destroyed financially,” the staff member revealed.
Mwesigwa’s petition calls on the Bank of Uganda to:
Investigate loan enforcement practices and provident fund handling.
Audit Clause 8(a) applications across staff loan agreements.
Compel compliance with constitutional, labor, and retirement benefits laws.
Ensure exiting staff can access their provident funds without illegal conditions.
He has also warned that if regulators fail to act, he will escalate the matter with a constitutional petition under Article 137.
Copies of the complaint have been shared with the Uganda Retirement Benefits Regulatory Authority (URBRA), the Attorney General, the Bank of Africa Groupe, and the Uganda Bankers Association to push for accountability.
For now, the silence of current employees allegedly silenced by fear of retaliation underscores what whistleblowers like Mwesigwa describe as a deeply entrenched system of exploitation at Bank of Africa Uganda.