Kenya: National Bank Sued Over Sh75million Loss

The National Bank of Kenya has been sued by a Mombasa based company over alleged unauthorised payments that cost the firm Sh75million. Habo Group of Companies, claimed the bank cleared for payment cheques with glaring forgeries of the account signatures, without counterchecking the genuineness of the cheques and signatures.

The company through its law firm Amuga and Company, also claimed that the bank made payments of crossed cheques over the counter, and other payments of 'obvious' alterations without counter signatures against the same. It now wants the bank to be compelled to pay the Sh75, 805, 099 and interest at bank rates of 15.5 percent per annum.

In documents filed in court, the company has accused the bank of being in breach of banking contract or the duty of care, through negligently allowing huge sums of money to be withdrawn from the account, between April 2009 and August 31 2010.

It was claimed that on diverse dates, the employees of NBK Portway House branch in Mombasa allowed various amounts of money to be withdrawn from its accounts irregularly.

The company has also sued its former chief accountant, Mercy Musera, whom it has accused of being issued with two parallel cheque books bearing the same numbers and serials to actively facilitate fraudulent withdrawals of funds from the account. Habo Group of Companies also claimed that in April 2009, the defendant withdrew Sh1.6million without any authorisation from the plaintiff and converted the cash to her own use.

Several companies have been mentioned as having received the money which was withdrawn through forged cheques. It was also revealed that criminal proceedings have already been instituted against Musera, and three others by the police, regarding to the theft.

Musera has since been restrained from transferring some of her properties, which she allegedly purchased using the stolen funds. She was also stopped from selling, charging or mortgaging her prime piece of land in Nyali, until the case filed against her by her former employer is heard and determined.