Big banks sucked into KCB’s fraud case against manager

Several commercial banks, lawyers and companies have been sucked into a civil suit where a former senior manager with Kenya Commercial Bank is accused of stealing Sh73.4 million from her employer.

Large sums
KCB has taken Mrs Ann Kajuju to court for alleged impropriety and fraud. She is alleged to have drawn and signed various bankers’ cheques belonging to KCB without authority, paying out large sums of money to various entities including her school-going children, siblings and close family members.

Mrs Kajuju together with lawyers Patrick Lubanga Mutuli and Joab Apopo of Apopo and Mutuli Advocates were charged in a magistrate’s court with stealing from KCB and granted bail a month ago.

Another firm of lawyers, Gitonga Kamiti and Kairaria and Ireri and Company Advocates, are also named as beneficiaries of the money and comprise the 29 co-defendants in the suit.

A week later, KCB instituted a civil suit at Milimani Commercial Court to recover the money, which it claims is being held in various banks. Also named in the suit are Rift Valley Railways, BAT and General Motors, who are alleged to have handled transactions involving the funds.  

The bank accuses its former Prestige Plaza Branch operations manager of drawing the bankers’ orders in favour of cronies “knowing too well that the money had been obtained fraudulently,” says suit papers filed in court.

Accounts frozen
It is claimed the money was fraudulently paid, cashed or deposited at the Standard Chartered Bank, Barclays, Co-operative Bank, Citi Bank, Equity Bank and Family Bank.

Lady Justice Jessie Lesiit ordered that the accounts in various banks be frozen pending the determination of the suit. At Equity Bank’s, Fourways Branch, an account with Sh60 million was frozen when the bank filed the matter under a certificate of urgency.

Orders freezing the accounts were extended yesterday by Lady Justice Joyce Khaminwa pending the mention of the case before Resident Judge Justice Lesiit on Friday next week.

Mrs Kajuju’s husband, Charles Magondu, a research officer at Kenya Agricultural Research Institute (Kari), is alleged to have operated an account in one of the banks trading as Dellman Enterprises.

According to the court papers Magondu opened the account using a pen name, Charles Nicholas.

However, the High Court ruled that their three children sued by the bank were minors and required a guardian to represent their interests in the case. Minors (children below 18 years) cannot be sued.  

Guardians
In a ruling delivered on the minors, Dalphne Kawira (15), Elizabeth Wanjiku (10) and Leah Wanjiru (three), Justice Kimaru said the court had appointed their mother and father to be the guardians.