
Juba, South Sudan
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Fredrick Owuor, the head of Stanbic Bank in South Sudan, faces the possibility of arrest following the issuance of an international warrant by South Sudan authorities.
This situation arises from an ongoing dispute involving Sh722 million between Stanbic Bank and Air Afrik, a local airline. The warrant against Owuor is based on several charges filed under the South Sudan Penal Code of 2008. Central to the conflict is Stanbic Bank's claim that Air Afrik owes it a substantial sum of money. Conversely, Air Afrik accuses the bank of freezing its accounts and making unauthorized withdrawals, exacerbating the situation.
Meanwhile, the High Court in Nairobi has temporarily suspended any prosecutorial actions against Joshua Oigara, the chief executive of Stanbic, allowing him to contest the allegations in court. This case is part of a broader legal struggle that includes ongoing proceedings in the Court of Appeal. Eric Lugalia, the Managing Director of Air Afrik, contends that the actions taken by Stanbic have inflicted considerable financial damage, impairing the airline's ability to meet its contractual commitments with the South Sudanese government.
In contrast, Stanbic insists it is owed Sh143 million, which it claims was improperly withdrawn by Air Afrik due to a clerical error. Stanbic has initiated legal proceedings, demanding that both the Bank of South Sudan (BoSS) and Air Afrik reimburse the disputed amount with accrued interest. The bank asserts that despite numerous attempts to request corrections for outstanding debts, such as an erroneous credit of Sh7.2 million to Air Afrik’s account, BoSS has remained unresponsive.
As the situation escalates, Stanbic has accused BoSS of misrepresenting credited amounts, which reportedly led to Air Afrik’s premature withdrawal of $1.1 million. In response, Stanbic froze the airline’s accounts, awaiting the actual transfer of funds that BoSS failed to provide. The Directorate of Criminal Investigations (DCI) is currently investigating allegations of fraud and false accounting; however, previous inquiries had cleared Stanbic Bank of any wrongdoing.
Additionally, a complaint lodged by Air Afrik with the Central Bank of Kenya (CBK) was dismissed, indicating no misconduct on the part of Stanbic.
In a related matter, the High Court’s Commercial Division initially favoured Air Afrik. However, Stanbic secured a stay from the Court of Appeal, arguing that the conditions set by Justice Nixon Sifuna hindered its ability to adequately present its defence.