Local financial institution Credit Bank Kenya under it’s CEO Betty Korir, now risks further tarnishing its already damaged reputation amidst serious allegations of fraud that have raised major concerns among its clientele.
Reports emerged about a case involving a Nairobi businesswoman who claims she lost millions through fraudulent transactions facilitated by insiders connected to the bank.
The businesswoman had deposited Ksh 30 million into her Credit Bank account to secure a Standby Letter of Credit (SBLC) for a planned expansion into the sugar importation sector.
She was then directed to make additional payments totaling Ksh 36.5 million to an intermediary who was introduced to her as a trusted agent of the bank.
According to her account, the bank’s CEO, Betty Korir, had facilitated her introduction to two bank employees, Luka Daniel and Kelvin Kahuthu, attached to the Trade & Finance Department, who were assigned to assist with the process.
Following discussions, Luka Daniel reportedly informed her that while Credit Bank could not provide the SBLC directly, a third party, Lilian Wangoi Odwoma, would be able to secure the necessary financial instruments.
Luka Daniel introduced Lilian as a customer well-known to the bank’s CEO, reassuring the businesswoman of her legitimacy.
Confident in her banker’s endorsement, the businesswoman proceeded with the arrangement, including an initial Ksh 30 million deposit and further payments totaling Ksh 36.5 million to Lilian’s account.What followed was a sequence of events that led to a significant financial loss for the businesswoman.
After making the required payments, she was presented with what appeared to be official SWIFT documents from an institution in Malaysia, which were later identified as forgeries.
Recognizing the documents as fake, she immediately informed Credit Bank’s management, hoping to freeze any remaining funds in Lilian’s account.
However, despite her prompt reporting, the funds were withdrawn from the account the following day, allegedly with internal assistance, leaving her with no means of recourse.
The businesswoman has since taken the matter to the Directorate of Criminal Investigations (DCI), with an appeal to have the public informed in order to protect other potential victims.
She expressed disappointment, highlighting that individuals she trusted within the bank appeared to have acted in concert to facilitate the fraud.
Luka Daniel maintained he had only acted on the CEO’s instructions, raising questions about the role of senior management in the matter.
According to her account, the fraud appeared to be orchestrated from the beginning, with Lilian Odwoma conducting similar transactions with other individuals.
She also indicated that Odwoma operates from a building near One Africa Place in Westlands, allegedly carrying out dubious activities with other women who have similarly fallen victim.
She expressed concerns over what she perceived as a potential network of fraud involving both internal and external players, whose actions could severely impact the bank’s reputation.
This case has sparked serious concerns regarding internal security and regulatory oversight within Kenyan financial institutions.
The involvement of senior-level bank employees raises questions about the safeguards in place to protect clients and prevent potential conflicts of interest. Fraud and corruption within financial institutions undermine public trust and could have far-reaching implications for banks’ stability and clients’ confidence.
As Credit Bank Kenya faces these allegations, it remains critical for the bank and relevant authorities to conduct a thorough investigation to ensure that justice is served.
The outcome of this case may serve as a warning to other financial institutions on the need to establish stringent checks and internal controls to protect clients from fraudulent schemes, whether originating within or outside their organizations.
Add Comment