Government-owned PostBank Uganda has acknowledged a serious "incident" at its Mbale branch involving over Shs 500 million in counterfeit currency discovered in the bank's vault. 

The situation came to light after a customer was apprehended with fake Shs 50,000 notes. Upon questioning, the customer revealed that the money had been withdrawn directly from the PostBank Mbale branch.

In a brief statement, PostBank referred to the issue as an "anomaly" and confirmed that investigations are underway.

"We are aware of an anomaly that recently occurred at our Mbale branch and are working with the relevant authorities to complete the investigation and follow the necessary next steps," the statement read.

The bank refrained from providing further details, citing the ongoing investigations.

Reports indicate that the counterfeit scandal has led to arrests, including some PostBank officials. The incident has raised concerns about internal controls within the institution, especially since the bank primarily serves public servants who receive their salaries through its branches across the country. By URN/The Observer