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DTB denies wrongdoing as fresh details on Sh150m fraud emerge

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Passers by walk past a Diamond Trust Bank branch. The bank says it has not been served with papers on a case filed by two customers who claim Ksh 15 million was stolen from their accounts.
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Diamond Trust Bank has denied any wrongdoing in the withdrawal of Ksh 150 million from fixed accounts belonging to Daehan Pharmaceuticals Ltd and one of its chairperson Lim Sun Pil even as shocking details emerged of how the money was siphoned out of the lender’s Thika Road Mall (TRM) Branch by one of its directors, Jong Chan Lee, who was a co-signatory.

The bank also says it has not been served with any court papers and was surprised to read about court cases filed last week, adding though it communicated findings of internal investigations its conducted following complaints lodged by Lim Sun and the company, their lawyers did not make any response.

“The subject fixed deposit was liquidated and the proceeds credited to your client’s account as per your client’s instructions, particulars of which are well known to your client.” The funds credited as above were utilized by your client and /or as per your client’s instructions. In the light of the foregoing kindly be advised that any misconceived action brought against the bank will be strenuously defended at your client’s risk as to costs and other consequences flowing therefrom,” the bank’s signed by Assistant manager-legal Javier Munzala and legal officer Karima Nathani had told Mrs Lim Sun and Daehan Pharmaceuticals Ltd in a letter dated June 4, 2018.

“The bank denies any wrongdoing and will respond to the court cases appropriately when court papers are delivered to it,” DTB said in a statement late Monday.

However, it has emerged that Lee and DTB TRM manager Joseph Muraya are facing charges in the Chief Magistrate’s Court in Nairobi where they are accused of conspiracy to defraud Daehan Pharmaceuticals Company Ksh 105,428,850.10 and Mrs Lim Sun Ksh 56,226,807.35.

They face other charges of stealing the money and Mr Lee faces an additional charge of forging the signature of Mrs Lim.

They were charged following investigations conducted by the Directorate of Criminal Investigations, which examined the authenticity of Mrs Lim Sun’s signature of the cashed cheques. The prosecution’s case is that Mr Lee would go to the bank teller with the cheques already signed by himself.

Giving a chronology of events of how the scheme was executed, lawyer and journalist Wahome Thuku writes that while in front of the teller he would then sign Mrs Lim’s signature. It is not clear whether the teller would notice or was required to ignore the anomaly.

News of the court case filed against Lee and Muraya triggered the interest of some DTB customers.

In an interesting twist, a DTB customer in Kisii county went to check his fixed deposits on reading the news in a newspaper and found his account had been raided.

READ: BEHIND TAJ MALL OWNER’S PROTRACTED BATTLE TO SAVE BUILDING

Acting on the advice of a lawyer, he similarly launched a complaint with the Directorate of Criminal Investigations and subsequently, Kisii branch manager Peter Sungu Nyakomitta was arrested mid last month and charged with stealing the money.

Interestingly, Muraya was transferred from TRM branch and is now based at the DTB headquarters.

 

 

 

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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