Customers defrauded hundreds of millions over weak systems at Co-operative Bank


Kenya’s third-largest bank is on the spot again for being a haven of rot from the information gathered through testimonials, court cases and inside sources raising an eyebrow amongst netizens.

Employees of the bank work with external defrauders to scam bulks of cash from unsuspecting customers. YOU MAY LIKE How Raila, Ida receive kickbacks to shield corrupt governors Revealed: New BBI game plan Despite the bank noting a lapse in its ICT systems, no tangible efforts have been taken to nab the scammers or to fix the hitch. In May 2011, Anthony Chege moved to court after his Co-op Bank account was frozen. From his findings, Chege’s account had been deposited with Sh14 million as proceeds from a betting fraud. Upon realizing the mysterious deposit, the bank froze Chege’s accounts on grounds that the money was not clean.

Consequently, Chege moved to court to object the action since it affected his existing bank balance before the Sh14million deposit. In his ruling, Justice Ochieng held that the bank did not review its systems or stop the fraudulent transactions four months after the investigations department had raised the red flag.

“By failing to act appropriately and in a timely fashion, the bank negligently contributed to continued debiting of an account which did not have requisite funds to meet such debits,” the judge held, in declining the bank’s demand for Sh14 million from the plaintiff. On top of such a fraud lies tens of concerns from Central Kenya Farmers whose farm assets were auctioned by the bank, despite, the government having paid the loans in full. Not to mention, several salaried civil servants who consequently report suspicious deposits into their accounts mysteriously. One such instance was reported at Co-operative Bank Kawangware branch. At the branch, it emerged that some employees made huge deposits to some customers’ accounts



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