Fraud in bank / TRA tax payments

An amount that my company was meant to pay the Tanzania Revenue Authority (TRA) was debited from my account but not remitted to the TRA. TRA is now after me and the bank is claiming that I should have checked my bank statement. It is quite obvious that the fraud was done at the bank. The bank is not admitting any liability. What should I do? "Customer"

Generally, a customer owes his bank a duty to take reasonable and ordinary precautions against forgery. One decision in the Courts has said (and we quote) ‘Primarily, the relationship between a banker and customer is that of debtor and creditor.

And the drawing and payment of the customer’s cheques as against the money of the customer’s in the banker’s hands the relationship is that of principal and agent.”

The bank also owes fiduciary duties to you as its client and it has been held in many cases that prima facie every agent for reward is also bound to exercise reasonable care and skill in carrying out the instructions of his principal.

It seems that the exact amount meant for the TRA was debited from your account and remitted to a third partythere has to be some collusion between the third party and the bank officials. If that can be proved, you have a very good case against the bank.

The mere fact that you did not pick the mistake from the bank statement will not limit the liability of the bank. If the bank does not cooperate to credit your account or remit the funds to the TRA, you should consider taking the bank to Court. From the facts, unless there are details that you are withholding from us, you have a very good case.