A former top employee of Access Bank has lost a bid to overturn her dismissal by the lender over suspected fraud.
The Employment and Labour Relations Court ruled that the bank had valid grounds to fire the officer, Tabitha Taracha, for the alleged irregular cash credits from the lender to her account and subsequent withdrawals. The court found that the termination was valid despite procedural flaws.
It was alleged that she irregularly deposited and withdrew more than Sh11.6 million through her personal account and later admitted to the misconduct in writing following inquiries by the bank.
While acknowledging shortcomings in the disciplinary process, the court held that Taracha’s admission "mitigated the need for a full hearing."
The Milimani High Court in Nairobi.
It dismissed her lawsuit and Sh47 million damages claim, describing her allegations of an "unlawful, humiliating, and embarrassing termination process" as lacking merit.
The dispute began in February 2016 when Transnational Bank Kenya (later acquired by Access Bank) summoned Taracha after a Deloitte forensic audit uncovered irregularities in general ledger accounts. The audit revealed withdrawals totalling Sh11.6 million over time.
The bank accused her of gross misconduct, citing fraudulent deposits into her account and those of other customers amounting to millions of shillings.
It stated that she had voluntarily accepted responsibility for the transactions in writing, violating the bank’s Human Resource Policy. She was summarily dismissed on March 1, 2016.
Ms Taracha denied the allegations. She sued, claiming she was "harassed, intimidated, and forced to sign" the admission without a fair opportunity to defend herself.
She maintained that she had worked diligently and testified that there was no sufficient evidence showing she was guilty of the fraudulent transactions that could not be actualised without the full authorisation of her superior officers and managers.
Acknowledged responsibility
However, Jayne Silamoi, the bank’s human resource business partner, testified that Taracha attended a meeting where she was confronted with the transactions and admitted to receiving irregular credits and making withdrawals without reporting them.
The bank presented bank statements and a handwritten letter in which Taracha acknowledged responsibility.
In its ruling, the court criticised the employer for failing to issue a formal notice to show cause and summoning Taracha without prior disclosure of the meeting’s purpose.
It emphasised that employers must inform employees of charges, potential consequences, and allow adequate time for preparation, including calling witnesses and seeking representation.
"The respondent did not demonstrate how or by whom the charges were presented to the claimant before she was given an opportunity to explain herself," the court noted.
"No meeting minutes were provided—only the alleged handwritten admission letter."
Nevertheless, the court deemed Taracha’s admission and supporting bank records conclusive.
"The admissions in her letter are fully corroborated by the bank statements," it stated, adding that her ICT skills enabled her to "deposit, withdraw, and conceal transactions from immediate detection."
Illustration of online money transfer.
Photo credit: ILLUSTRATION
The court dismissed her coercion claim as "more likely untrue," stating that a forensic investigation was necessary to uncover the fraud.
"The evidence collectively refutes the possibility that her handwritten admission resulted from intimidation rather than voluntary disclosure," it ruled.
The court upheld the dismissal, finding that the bank had established justifiable grounds under the Employment Act.
However, it ordered Access Bank to pay Taracha Sh326,000 in unpaid February 2016 salary and compensation for 28 days of accrued leave, plus interest.
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