The head of Stanbic Bank in South Sudan, Fredrick Owuor, is facing an international arrest warrant amid a Sh722 million dispute with Air Afrik, a local airline. The conflict revolves around allegations of unauthorized account activity and frozen funds.
Stanbic Bank claims Air Afrik owes Sh143 million, pointing to erroneous withdrawals and unaddressed debts involving the Bank of South Sudan (BoSS). Conversely, Air Afrik accuses Stanbic of freezing its accounts and causing financial harm, impairing its contractual obligations.
In Nairobi, the High Court temporarily halted prosecutorial actions against Stanbic CEO Joshua Oigara, enabling him to contest the charges in court. Stanbic has sought legal redress, demanding reimbursement of disputed funds with interest. The dispute escalated when BoSS allegedly misrepresented credited amounts, allowing Air Afrik to withdraw $1.1 million prematurely, prompting Stanbic to freeze the airline’s accounts.
While investigations by Kenya’s DCI cleared Stanbic of fraud, Air Afrik’s complaint to the Central Bank of Kenya was also dismissed. A prior High Court ruling in favour of Air Afrik was stayed by the Court of Appeal, enabling Stanbic to defend itself further. The legal battle remains ongoing.