Zimbabwe: Massive Fraud at Kingdom Bank

One of the country’s leading financial institutions founded by Zimbabwean businessman Nigel Chanakira, Kingdom Bank has fired at least 22 workers for allegedly defrauding the bank of huge sums of money.

Kingdom Financial HoldingsA source says the Reserve Bank of Zimbabwe (RBZ) is expected to descend on the financial institution anytime from now, so as to launch wider investigations which cost Kingdom Bank an unconfirmed amount.

A Kingdom Bank source hints the scam had been taking place for years, but was unearthed recently after internal investigations. All the workers were based at various branches in Harare and include two people at the Westgate branch.

“The dismissed bank workers received letters confirming the immediate termination of employment late last week, on Friday the 7th of March.”

“Most of the fired employees were involved in foreign currency deals within the bank,” he said.

Kingdom Financial Holdings Limited (KFHL) is a Zimbabwe-based holding company of a group of businesses spanning a range of activities in the financial services industry.

Recently, a merger involving Kingdom Holdings, Meikles Africa and Tanganda took place resulting in the birth of Kingdom Meikles Africa- headed by Chanakira.

The source said the bank is still looking for more culprits within the financial institution.

“However, the bank indicated the fired employees are entitled to all their benefits and packages,” he said.


Recently, the RBZ Governor, Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.

He advised the financial sector to appeal to their good selves in which the central bank issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices

Some of the culprits were allegedly withdrawing money from accounts that did not belong to them, in which they used it for their own benefit, and did not return a single cent.

“A friend of mine (name supplied) was also caught up in the smoke. He phoned me Friday evening saying that he was shocked to learn of the developments.”

“We used to drink together every weekend but on Friday he indicated he is going straight home. Later that night, he phoned again and said he was stressed and could not eat,” said the source.

Late last year, during the cash crisis, many bank employees reportedly lost their jobs as they were involved in cash deals in which they would get bribes.

The workers would reactivate dormant accounts which they would use as channels to siphon money.

Another sacked employee referred to as Memory (who was based at the Westgate branch) is understood to have bought various properties with the allegedly ‘stolen’ funds.

“She is very talkative and went around town boasting about the illegal deals she was conducting.”

“The lady indicated she was caught unaware and is also not happy with her employer’s decision. She is also not answering her mobile phone,” he added.

http://www.zimbabwegazette.com/the-news/business/massive-fraud-at-kingdom-bank-20080310295.html