The management of Credit Bank is once again on the spotlight over blatant theft of depositors’ money exposing customers to manipulable bank systems and rogue employees.
The latest case involves a Nakuru based businessman whose Sh10million was siphoned from his four bank accounts while on a hospital bed out of the country where he was admitted undergoing treatment only to realise the colossal amount was missing from his account when he jetted back.
Francis Ng’ang’a Kihara says the matter was reported to the bank’s regulator, the Central Bank of Kenya (CBK), the Kenya Bankers Association (KBA) and the Anti-Banking Fraud Investigations Unit (BFIU), a specialised unit domiciled within the Directorate of Criminal Investigations (DCI).
According to investigations findings, the clandestine theft occurred between June 6, 2017 and August 28, 2019.
This is the second case in a row following an exposee by The Informer two months ago on how a senior Credit Bank manager, now stationed at Karen branch colluded with another account holder in the theft of Sh3.6million.
The money in question was sent through RTGS on June 2, 2017 to bank’s client to his Credit Bank Koinange Branch was diverted to a separate account against the payment advise.
Consequently, a senior official at the bank in collusion with a lady bank client are accused of orchestrating the fraudulent scheme to divert the money to the lady’s company account.
They are also accused of forging signatures of two account holders at the bank including that of the complainant pretending to be joint signatories of the account the money was diverted to.
According to the payment advice in our possession, the money was to be transferred to the complainant’s personal account.
Sh500,000 was withdrawn in cash using Office Ventures cheque number 000002 dated July 10, 2017 and the complainant signatures was allegedly forged in pretex that he is a signatory in the account.
The balance transferred to the lady’s personal bank account whois believed to have been used as a conduit to embezzle the money in question.
The complainant has since disowned any knowledge of being a director or shareholder to Office Ventures.
“We acknowledge receipt of your Email correspondence and queries therein noted. We wish to advise that the matter has been handled through various channels with the client including but not limited to physical meetings and written communications. Further, the matter was earlier raised through Central Bank of Kenya and was sufficiently responded to. We confirm that all transactions are handled in accordance with the prudential guidelines.” Credit Bank Chief Executive Officer (CEO) Betty Korir told The Informer.
For Kihara’s case, despite investigations revealing the bank and their employee were to blame, Credit Bank committed to repay him by he has never received a penny since then.
The four bank accounts operated by Kihara belong to; Joyland Commercial Enterprises Limited, Mount Sinai Agencies and Kabazi Road Petrol Station.
The other bank account is registered in his name.
“I have done follow-ups for close to 11 months without success. I need the funds for my medical checkup,” Kihara indicates in a letter addressed to the financial institution’s Nakuru Branch Manager and annexed to the petition.
“Pursuant to the acts of theft your servant was charged with the criminal offense of stealing by servant contrary to Section 281 of the Penal Code. Despite the fact that your servant was charged with the criminal offense on February 15, 2021 your bank has failed, neglected or refused to refund our client`s money totaling Shs 10,150,241,” states a letter in part drafted by Kanyi Ngure and Company Advocates and addressed to the bank’s Executive Officer.
In a letter to CBK and KBA, the businessman’s attorney states that the financial institution had accepted guilt in multiple correspondences to their client and that the bank was culpable for the improper acts and omissions of its servants.
The letter addressed to the Head of Legal Department at the financial institution, Wachira Mbuthia and Company Advocates writes on his behalf that the matter had taken ‘unreasonably’ long to be resolved and that he was ‘greatly concerned’ by the slow pace, which had affected his physical and psychological well-being.
If the bank does not repay the lost money within 14 days, Kihara’s solicitors have threatened to file Court Recovery Proceedings against it, alleging a 36 per cent annual interest rate on the stolen funds.
“We will be claiming the interest from the date when criminal charges were preferred against your servant from February 15, 2021 until payment in full and all proceedings shall be at your bank’s own risk as to costs and other incidental charges thereby incurred,” warns a demand notice signed by Kanyi Ngure and Company Advocates.
